Deals falling sideways, Due Diligence gets stricter | Mint Insight

Covid-19 has led to massive disruption in working capital cycles and cash flows, which are unlikely to normalize in the short-term. In the latest dispatch of Mint Insight, we decode the impact of the virus on dealmaking and how it will impact critical metrics such as due diligence. According to experts, deal-makers would need to do a far detailed diligence, including operational changes on monthly cash flow projections, to arrive at normalized working capital trends for the future. Incrementally, they would need to do deep diligence on closing working capital to ensure recoverability/accuracy of the reported numbers.