For transactions that are still not quite closed or still in the diligence phase, we should expect to see additional scrutiny, deepened risk analysis and on-going requests for up to date financial results. Additional calls to customers and accountants may also be warranted to re-test the quality of earnings. Suddenly the ability to maintain operations remotely will be a key question. This in-depth cross-checking will put extra pressure on executive teams and more so on owner-operators, all of whom are now dealing with the pandemic on top of deal stress and that with reduced resources. Minimally, these detailed reviews will cause delays.
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