What do you understand by slump sale.

Slump Sale is one of the widely used ways of business acquisitions. A slump sale is the transfer of a whole or a part of a business concern as a going concern; lock, stock and barrel. The concept of 'slump sale' was incorporated in the Income Tax Act, 1961 ("IT Act") by the Finance Act, 1999 with the inclusion of section 2(42C). The term 'slump sale' is defined as transfer of one or more undertakings as a result of the sale for a lump-sum consideration without values being assigned to the individual assets and liabilities in such sales. Slump sale is carried out through following steps: To find Buyer To enter into & sign MoU/Term sheet To make Valuation of the undertaking To negotiate and deal Structuring To enter into final Slump sale agreement