A company is selling a division (Slump Sale) for a lump sum consideration. Data: Book Value of Assets: ₹100 Lakhs Revalued Market Value of Assets: ₹150 Lakhs Liabilities to be transferred: ₹40 Lakhs Synergy gains expecte
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2026
A company is selling a division (Slump Sale) for a lump sum consideration. Data: Book Value of Assets: ₹100 Lakhs Revalued Market Value of Assets: ₹150 Lakhs Liabilities to be transferred: ₹40 Lakhs Synergy gains expected: ₹10 Lakhs Compute the Adjusted Net Assets Value and Minimum Sales Consideration.
Answer & Explanation:
Adjusted Net Asset Value (NAV): Revalued Assets - Liabilities ₹150 Lakhs - ₹40 Lakhs = ₹110 Lakhs Minimum Sale Consideration: The base valuation is ₹110 Lakhs, but to include synergy, the final price is often negotiated higher (e.g., ₹110 Lakhs + Synergy gains = ₹120 Lakhs).
Topics: Valuation
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