b'Notes to the consolidated financial statements continuedFor the year ended 31 March 202013. Business combinations continuedUnder the terms of the acquisition agreement, the fair value of the consideration payable to NVM is:000Cash 12,400Shares16,800,000 shares in Mercia Asset Management PLC valued at 25.0 pence per share on 23 December 2019 4,200Total initial consideration 16,600Deferred consideration 6,182Total consideration 22,782The initial consideration shares were admitted to trading on AIM on 27 December 2019.Actual revenues and profits of the VCT fund management businessThe actual revenues and profits that have been generated since the acquisition of the VCT fund management business on 23 December 2019 to 31 March 2020 are:000Revenues 1,917Profit before taxation 547The disclosure of the revenue and loss for the Group if the acquisition had occurred on 1 April 2019 has not been presented as the determination of these amounts is impracticable, due to the fact that the entire NVM Private Equity LLP business was not acquired and there will have been revenues and expenses not relevant to the VCT fund management business acquired.Fair valueThe fair value of the management contracts has been estimated using a discounted cash flow model. The estimated cash flows have been valued at a discount of 15%, resulting in the recognition of a fair value for the fund management contracts of 20,331,000.14. GoodwillThe goodwill arising on the businesses acquired to date, being Mercia Fund Management Limited, Enterprise Ventures Group Limited (Enterprise Ventures) and the VCT fund management business of NVM, is set out in the table below.VCT fund Mercia FundEnterprisemanagement Management Venturescontracts Total000 000 000 000CostAs at 1 April 2018 2,455 7,87310,328AdditionsAs at 31 March 2019 2,455 7,87310,328Additions 6,314 6,314As at 31 March 2020 2,455 7,873 6,314 16,642Included in additions to goodwill in the financial year is 6,314,000 which arose on the acquisition of the VCT fund management business in December 2019. Details of the consideration paid and assets acquired as part of this transaction are set out in note 13 to these consolidated financial statements. Goodwill for each business acquired has been assessed for impairment as at 31 March 2020. Recoverable amounts for each cash generating unit (CGU) are based on the higher of value in use and fair value less costs of disposal (FVLCD). FVLCD for each CGU to which goodwill has been allocated was calculated using a revenue multiple model based on the CGUs budgeted revenues for the financial year ending 31 March 2021.The review concluded that the FVLCD recoverable amount of each CGU exceeds its carrying value. The Directors do not consider that any reasonable possible changes to the key assumptions would reduce the recoverable amount of the CGUs to their carrying value.92 Mercia Asset Management PLCAnnual Report and Accounts 2020'