b'98 Mercia Asset Management PLC Annual Report and Accounts 2021Notes to the consolidated financial statements continued14. Business combinationsOn 23 December 2019 Mercia completed the acquisition of the VCT fund management business of NVM for a total maximum consideration of 25,000,000 comprising a combination of cash and new Ordinary Mercia shares. The fair value of the identifiable net assets acquired and the consideration payable under IFRS 3 are as follows:Fair value000Fund management contracts intangible asset 20,331Goodwill 6,314Deferred tax liability arising on intangible asset (3,863)total identifiable net assets 22,782Under 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 business of NVMThe actual revenues and profits that have been generated since the acquisition of the VCT fund management business of NVM 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 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.'