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Doubts regarding PC
Purchase consideration calculated by using Net Assets method and payments made to shareholders of transferor company will always match? And is there any rule as such that purchase consideration has to be calculated by using specific method say Net Assets method only?
Replies (1)
The Purchase Consideration is the total value agreed upon by the companies. The Net Assets and Payment methods are simply tools to calculate or verify that total; they do not always yield the same result, and there is no legal requirement to use one over the other—the governing factor is the specific contract of the amalgamation.
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