Valuation & Finance
Net Debt Adjustment
Reduction of enterprise value by outstanding debt and debt-like items to arrive at the seller's actual equity proceeds — sellers should clean up debt-like items pre-sale.
Seller Example
Promoters of an Indore pharma formulation unit proactively clear ₹9 Cr of unpaid statutory dues and an old vehicle loan before going to market, ensuring the full ₹60 Cr enterprise value converts to equity proceeds at closing instead of surrendering ₹9 Cr through post-diligence adjustments.