I am looking at a small Saas business that in the prospectus, the broker presented the income statement on an accrual basis (the revenues). During due diligence, I realized that the profit on a cash basis is about 10% less. They provided the cash basis reconciliation after we signed an LOI.

My question is - is this normal? I feel like I'm overpaying the 10% x my valuation. I'm new to this and I don't feel like I will get a straight answer from the broker. Any help is appreciated!