Net Debt Adjustment

A rupee-for-rupee reduction of enterprise value for the target's outstanding debt and debt-like items, to arrive at the actual equity value payable to sellers.

Buyer Example

Buyer agrees to ₹60 Cr enterprise value for an Indore pharma formulation unit. Diligence reveals ₹9 Cr of unpaid statutory dues and an undisclosed vehicle loan classified as debt-like, reducing the actual equity consideration paid to promoters to ₹51 Cr.