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Best Practices Guide

MergeDeck Ventures Pvt. Ltd. · April 2026

Important: This guide is for informational purposes only and does not constitute legal, financial, or regulatory advice. Always engage independent advisors before transacting.
SECTION 1

For Sellers: Before You List

Four things to do before your listing goes live on Mergedeck.

01

Keep your listing accurate

Use audited or management accounts — not projections.

02

Get a valuation done first

Have an independent valuation ready before listing. Unrealistic pricing is the single most common reason deals fail at term sheet stage.

03

Disclose negatives upfront

Litigation, tax disputes, RBI/SEBI/NCLT proceedings, and key-person risk must be disclosed proactively. Buyers find these in diligence.

04

NDA before any documents

Share financials, customer data, and operational records only after a signed NDA with Indian governing law and jurisdiction is in place.

SECTION 2

For Sellers: During the Process

Five-point checklist to follow while actively engaging with buyers and investors.

  • Verify buyer identity via video KYC, MCA company search, or government-issued ID before sharing sensitive documents. Mergedeck does not verify user identities independently.
  • Keep all communications on the Mergedeck platform. If an introduction disappears from your dashboard, stop all interaction and contact support immediately.
  • Confirm your business is legally eligible for the proposed transaction. Sector-specific FDI restrictions, RBI licence conditions, and NCLT/ED proceedings may prohibit or limit a sale.
  • Submit only original content. Do not upload AI-generated financials, fabricated client references, or third-party IP without authorisation. Mergedeck may remove listings found to contain misleading content.
  • Never pay a token advance, deposit, escrow premium, or insurance bond to any investor or buyer. No genuine acquirer demands upfront payments from a seller.
SECTION 3

For Buyers & Investors: Before You Engage

Four things to do before you make contact with a sell-side party.

01

Keep your profile current

Reflect real investment capacity, sector focus, deal type (acquisition / stake / debt), and decision-making timeline. Inaccurate profiles waste both sides' time.

02

Disclose your fund source

Share source of funds, past acquisition track record, and fund/vehicle structure upfront. Required for PMLA compliance and builds seller confidence.

03

State your investor type

Clearly say whether you are a strategic acquirer (synergies) or financial investor (returns). This is the most important clarity in any opening conversation.

04

Hire your own advisors

Engage independent legal, financial, tax, and sector advisors before signing anything. Do not rely on platform data or AI-generated diligence summaries.

SECTION 4

For Buyers & Investors: During the Process

Five-point checklist while actively evaluating and transacting.

  • Verify the target via MCA21, RBI/SEBI/IRDAI registries, GST portal, income tax records, and CIBIL/CRILC credit bureau searches before advancing.
  • For regulated entities (NBFCs, brokers, insurers), obtain prior RBI/SEBI/IRDAI approval for change of control before executing any binding agreement. NBFC change-of-control approval typically takes 6–12 months — factor this into deal timelines.
  • Cross-border investors: confirm FDI route (automatic vs. government approval), sectoral caps, and FEMA reporting obligations (FC-GPR, FC-TRS) before any fund transfer.
  • Do not make any payment to a seller outside a formally documented, legally reviewed transaction structure with clear conditions precedent and escrow protections.
  • Conduct all communications through the Mergedeck platform. An introduction is not authorisation to contact sell-side parties through external channels.
SECTION 5

AI-Era & Cross-Border Safety: 6 Things to Know

Essential guidance for transacting in an era of AI-generated content and global deal flow.

1.

Verify AI-generated content

Financials, pitch decks, and profiles can be AI-generated. Always request original ITRs, audited accounts, and MCA filings to verify.

2.

Insist on live video interaction

Deepfakes and scripted videos are a real risk. If a counterparty avoids unscripted live video, treat it as a fraud indicator in high-value deals.

3.

Confirm jurisdiction in every document

Every MOU, NDA, or term sheet must state governing law, jurisdiction, and dispute resolution mechanism — especially in cross-border transactions.

4.

Protect personal data (DPDPA 2023)

Do not share promoter, employee, or customer PII with foreign counterparties without confirming DPDPA 2023 and applicable GDPR obligations.

5.

Verify all communication channels

Email addresses, domains, and phone numbers can be spoofed. Confirm all payment and wire transfer instructions through a separately verified channel.

6.

AML / KYC is your responsibility

Acquisition funds must come from disclosed, lawful sources. Routing funds through shell entities or layered structures is a criminal offence under PMLA 2002.

SECTION 6

Red Flags: Stop and Verify Immediately

Pause engagement and escalate to your advisor if you encounter any of the following:

  • Requests for token advance, deposit, escrow premium, or insurance payment before any transaction is formally documented.
  • Counterparties who immediately move communication to personal WhatsApp, email, or phone numbers outside the Mergedeck platform.
  • Listings with inconsistent financials, unverifiable statutory registrations (MCA/RBI/GST), or missing government-filed records.
  • Profile photos that appear AI-generated; counterparties who refuse live, unscripted video interaction for high-value deals.
  • Overseas buyers offering above-market valuations and requesting urgent wire transfers or escrow payments with short deadlines.
  • Advisors demanding large non-refundable retainers without a documented mandate letter or a verifiable deal track record.
  • Any party claiming regulatory approval has already been obtained — always verify directly with the relevant authority (RBI / SEBI / IRDAI).

Questions or concerns?

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