Case Study: Rescuing a Cross-Border Acquisition Deal

Case Study: Rescuing a Cross-Border Acquisition Deal

How CorpArray resolved a critical FEMA valuation deadlock for a Manufacturing merger.

The Situation

An Australian heavy machinery group agreed to acquire a 100% stake in an Indian component manufacturer. The deal value was AUD $12M.

The Compliance Crisis

The RBI rejected the initial Form FC-TRS filing. The valuation method used by the Australian auditor (EBITDA multiple) did not align with the strict "DCF" (Discounted Cash Flow) method mandated by FEMA regulations for unlisted shares.

CorpArray's Intervention

We deployed our dual-qualified Chartered Accountant team. Within 72 hours, we:

  1. Restructured the valuation report to meet FEMA Section 56 rules.
  2. Liaised with the Authorised Dealer (AD) Bank in Mumbai to clarify the discrepancy.
  3. Refiled the FC-TRS with a watertight justification note.

Result

Approval granted. Funds remitted. The acquisition closed on time.