SELLER DOESN'T WANT TO SHOW BANKS THEIR ADD-BACKS, HAS ANYONE ENCOUNTERED?

Have a business under LOI. It makes 550k/year after add-backs each of the last 3 years, but the 2020 tax return shows only 100k EBITDA and[redacted]show 300k. The add-backs to get to 550k are largely personal expenses and payments to family members, and the seller is extremely uncomfortable with that information being shown to anyone outside of me.

Without at least ~half of these add-backs, the business won't be able to clear DSCR thresholds that are needed for SBA loans. There is a broker involved, but he is not explaining the situation to the sellers.

Has anyone encountered this before? How can I help assuage fears, build trust, and give comfort on a new and vulnerable process for the seller?



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