Paper Contents
Abstract
Slump Sale, a transfer of an entire business as a going concern for a lump sum payment, without assigning individual values to assets and liabilities. It is a key mechanism in business acquisitions. A popular approach for mergers and acquisitions, slump sales are known for their ease of use and tax efficiency. This paper examines the idea of a slump sale and highlights how it is governed by the Companies Act of 2013 and the Income Tax Act of 1961. It explores its benefits, including tax efficiency, regulatory simplicity, and operational continuity, while also recognizing possible drawbacks, such as problems with transparency and hidden liabilities. The paper also compares asset purchases and slump sales, describes the steps in the transaction process, and talks about the regulatory approvals that are needed when financial thresholds are surpassed, including those from the Competition Commission of India. This thorough analysis seeks to offer a clear understanding of slump sale transactions, making it an invaluable tool for corporate law students, legal professionals, and business stakeholders.
Copyright
Copyright © 2025 Tanvi Goel. This is an open access article distributed under the Creative Commons Attribution License.
