Financial Due Diligence Training

Prerequisites

It is necessary to understand the fundamentals of corporate finance.

Objectives

◗ Apply due diligence procedures to assess a company's financial health.

◗ Assess the quality of financial statements that influence investment decisions.

◗ Identify potential financial risks related to asset quality, debt components, and cash flows.

◗ Understand the requirements of Transaction Services firms conducting financial due diligence.

◗ Effectively document due diligence for stakeholders.

Training program

◗ Analysis of historical financial statements: balance sheet, income statement, and cash flow statement

– Quality of earnings: revenue recurrence, changes in margins and cost structure
– Analysis of debt and financial obligations, including bank covenants and off-balance-sheet commitments
– Analysis of working capital requirements: target working capital and target net cash
– Benchmarking against industry averages
✔ APPLY | Practical exercise: Conduct a financial analysis using a company’s financial statements

◗ Analysis of financial and budgetary forecasts: 3- to 5-year business plan and N+1 budget

– Challenge assumptions: conduct sensitivity analyses (scenarios) with regard to the chosen strategic directions, market potential, and the degree of control over key success factors
– Evaluate the budgeting process and assumptions
– Test the robustness of the financing plan: compliance with industry financial ratios and bankability
✔ APPLY | Case study: analyze and challenge a business plan and assess its robustness and bankability

◗ Cash flow audit and valuation of assets and liabilities

– Cash Generation and Consumption: Historical Data and Forecasts
– Testing the Fair Value of Assets
– Reviewing the Provisioning Policy
✔ APPLY | Case Study: Analysis of a Cash Flow Statement

◗ Compliance with accounting regulations and financial risks

– Test compliance with current accounting rules according to the framework chosen by the company
– Test the company’s exposure to risks
• Liquidity risks: strength of banking relationships, financial safety margin, debt capacity, Banque de France rating or credit rating
• Foreign exchange and interest rate risks
✔ APPLY | Case study: Calculating and analyzing liquidity ratios

◗ Optimization Strategies and 100-Day Post-Transaction Action Plan

– Optimizing Financial Performance
– Optimizing Financial Structure
– Optimizing Key Processes
✔ APPLY | Case Study: Identifying Optimization Leverage Points and Proposing Appropriate Action Plans

◗ Objectives and Implications of Financial Due Diligence

– Reassessment of the target company’s valuation, renegotiation of the terms of the transaction (contractual adjustments, conditional clauses, etc.), revision of the transaction structure (payment terms, acquisition of business assets versus securities), withdrawal from the transaction
– Definition of the terms and scope of the asset and liability guarantee (GAP)
– Impact on financing eligibility criteria
– Post-transaction action plan
✔ APPLY | Case study: How should the scope of the GAP be adjusted based on the due diligence findings?

Why choose this course?

Financial due diligence helps ensure the success of acquisitions, divestitures, or fundraising efforts.

This training course helps participants analyze financial statements and cash flows, identify key risks, and develop a post-transaction action plan to inform strategic decisions.

Teaching and assessment methods

Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.

Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.

Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.

During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.

Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.

Price

€1,720 (excluding tax)

Generalist trainings

Financial Due Diligence Training