Corporate M&A result in change management and unexpected impact which are not always possible to plan ahead. BUT Cash Flow can be forecasted and planned well to ensure that operations doe snot get impacted. Further it is critical to ensure that day to ay expenses and specially salaries are not impacted. Following can be done to manage the same: a) Credit Lines extension b) Communicating to vendors and creditors that we will extend the payment terms way in advance and in systematic manner c) Communication with the other entity about the need for funds infusion and if the same is possible should be done in advance d) Timely collections and tight control over customer credit

Managing cash flow during M&A requires careful planning and real-time monitoring. Here are key strategies: 1. Thorough Due Diligence: Assess both companies’ cash flow, liabilities, and revenue streams to understand combined cash needs. 2. Cash Flow Forecasting: Create detailed projections for different M&A scenarios to anticipate cash demands. 3. Cost Management: Identify areas for cost synergies to optimize cash flow post-merger. 4. Financing Plan: Arrange sufficient financing (lines of credit, loans) to cover integration costs and any cash flow shortfalls. 5. Working Capital Optimization: Focus on efficient management of receivables, payables, and inventory. 6. Contingency Planning

First analyze the financials of both firms with a keen look at the existing covenants. Based on the outcome of the analysis model cashflow scenarios with optimal working capital and other factors key to the merger and acquisition. Choose the position that best align with the merger or acquisition strategy at the highest positive cashflows

It is imperative to conduct comprehensive due diligence to identify potential financial risks and synergies, implement disciplined financial planning and budgeting to manage integration costs, and establish robust working capital management practices to ensure liquidity throughout the transition in order to maintain optimal cash flow during a corporate merger or acquisition.