Valuation & Finance
Related Party Transaction (RPT) Adjustment
Re-pricing of transactions with promoter-affiliated entities to arm's-length terms — sellers should resolve or disclose RPTs early to avoid last-minute valuation erosion.
Seller Example
Promoter of a Bengaluru packaging company sourcing 40% raw material from a sister entity renegotiates that supply contract to market rates six months before sale, converting what would have been a ₹90 Lakh negative adjustment and buyer skepticism into a clean, defensible earnings base.