Deal Structuring

Slump Sale

Transfer of an entire business undertaking as a going concern for a lump-sum consideration, without itemized asset/liability valuation, executed via a Business Transfer Agreement (BTA).

Buyer Example

Buyer acquiring a precision auto-components unit in Chennai (₹28 Cr lump-sum) structures the deal as a slump sale rather than a share purchase to ring-fence pre-existing tax disputes and contingent labour liabilities sitting inside the target company. Only liabilities specifically scheduled in the BTA transfer to the buyer — legacy litigation stays with the selling entity.

Related terms in Deal Structuring & Commercial Terms