Egregious owner add-backs - not worth the risk?

I have been making progress with a company which custom fabricates niche (metal) components for a specific industry. The business is located in an emerging market and has the following characteristics:

- Brokered deal
- USD$1.7m turnover
- $150k SDE (per tax returns)
- $700k SDE (with add backs, recently revealed to me)
- EV $500k - 1.2m (listed as 500k originally but with the recent SDE increase I expect they may try to renegotiate price)
- Owner is relocating and retiring in the west and has been trying to sell the business for 2 years. They spent 5 months out of the country in the last 12 months. Strong management team.
- Recently, they have been taking money out of the business as cost of sales, plus allocating customer invoices against director's loan accounts.
- If I were to proceed, there will be substantial effort needed to validate the actual earnings, or to just discount them entirely (or both).
- Owner is happy for sale of assets

Apologies for the anonymous post, I don't want this to open up liabilities for the business if I were to proceed.