Financial Due Diligence Training Course

Duration 10 days 18 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Corporate Finance Managers, Financial Controllers and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 16 Nov 2026 Course code SD-FM-146

Before you join: Participants should be comfortable reading income statements, balance sheets and cash flow statements, and should understand basic accounting entries, accruals, depreciation and financial ratios.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Financial due diligence determines whether reported financial performance, working capital, cash generation and debt positions support a transaction price and deal terms. Buyers, lenders and investors need evidence beyond statutory accounts: sustainable earnings, unusual revenue patterns, liabilities not reflected in the balance sheet, cash conversion constraints and forecast assumptions that may not withstand scrutiny. Weak analysis can lead to price adjustments, poorly structured completion accounts, missed risks or post-acquisition disputes.

This course develops the financial due diligence techniques used in acquisitions, investments, refinancing and strategic partnership decisions. Participants analyse historical financial statements, trial balances, management accounts and operational data to produce a quality of earnings assessment. They examine revenue recognition, margin movements, customer concentration, working capital, net debt, cash flow, tax exposures, related-party transactions and forecast credibility. The course also addresses transaction structures, purchase price mechanisms, materiality, data-room requests and reporting findings clearly to investment committees and deal teams.

Teaching combines focused briefings with financial statement analysis, transaction-style cases, spreadsheet modelling, group reviews and report-writing tasks. Participants work through a connected case from initial scoping to final findings, using evidence commonly available during a transaction. They leave with a reusable financial due diligence workpaper pack, including a quality of earnings bridge, net debt schedule, normalised working capital analysis, information request list and report structure. The course suits finance professionals supporting M&A, investment appraisal, lending decisions and corporate development work.

What you will be able to do

  • Scope a financial due diligence workplan using materiality, risk assessment and transaction objectives
  • Analyse quality of earnings through normalisation adjustments and sustainable EBITDA bridges
  • Test revenue recognition, customer concentration and margin movements using transaction-level evidence
  • Calculate normalised working capital targets and identify completion-account adjustment risks
  • Assess net debt, debt-like items, liquidity pressures and off-balance-sheet exposures
  • Build integrated historical and forecast cash flow analyses for transaction decision-making
  • Challenge management forecasts through driver-based modelling, sensitivity analysis and evidence testing
  • Present a financial due diligence report with quantified findings, risks and recommended actions

Benefits of attending

For you

  • Produce quality of earnings analyses that distinguish reported from sustainable EBITDA
  • Question management accounts and forecasts with a documented evidence trail
  • Build credible net debt and working capital schedules for transaction discussions
  • Write findings that connect financial evidence to price, terms and post-deal actions
  • Contribute more effectively to M&A, investment, refinancing and lender review teams

For your organisation

  • Improves identification of earnings, liquidity and balance-sheet risks before commitment
  • Supports better purchase price, working capital and net debt negotiations
  • Creates consistent diligence workpapers and evidence standards across deal teams
  • Reduces reliance on untested management forecasts during investment decisions
  • Provides clearer financial findings for investment committees, lenders and senior management

Course modules

18 modules over 10 days

Participants can define the purpose, scope and outputs of a financial due diligence assignment.

  • Financial due diligence objectives within acquisitions, investments, refinancing and joint ventures
  • Buy-side, sell-side and lender diligence mandates compared
  • Transaction timetable, data-room access and reporting milestones
  • Materiality thresholds linked to enterprise value and decision relevance
  • Financial findings translated into price, terms and post-deal actions
  • Interfaces with legal, tax, commercial and operational due diligence

Participants can prepare a risk-based diligence plan and targeted information request list.

  • Risk-based scoping from business model, transaction rationale and available evidence
  • Initial information request list covering financial, operational and legal records
  • Management questions framed around anomalies, trends and key assumptions
  • Data-room index mapped to workstreams, owners and status
  • Workplan sequencing for limited access, compressed deadlines and incomplete records
  • Red flags prioritised by likelihood, financial impact and deal consequences

Participants can assess whether financial statements provide a reliable basis for diligence analysis.

  • IFRS and US GAAP differences affecting earnings and balance-sheet comparability
  • Accounting policy review focused on material judgement and estimation areas
  • Audit reports, qualifications and emphasis-of-matter paragraphs assessed
  • Trial balance reconciliations to statutory accounts and management reporting
  • Chart-of-accounts mapping for consistent multi-period financial analysis
  • Prior-period restatements and error corrections investigated for underlying causes

Participants can link operating drivers to revenue, margin, cash flow and financial risk.

  • Revenue streams mapped to products, contracts, channels and customer segments
  • Fixed and variable cost structures separated using management account evidence
  • Volume, price, mix and foreign-exchange effects quantified
  • Monthly trend analysis identifying seasonality, volatility and unusual movements
  • Customer concentration measured through revenue, margin and receivables exposure
  • Key performance indicators reconciled to reported financial results

Participants can build an initial quality of earnings assessment from reported financial results.

  • Reported EBITDA reconciled from statutory accounts to management reporting
  • Quality of earnings framework separating recurring and non-recurring performance
  • EBITDA bridge constructed across historical periods and reporting segments
  • Normalisation criteria based on recurrence, controllability and transaction relevance
  • Material adjustments supported by source evidence and calculation logic
  • Run-rate earnings compared with annual results and management forecasts

Participants can test revenue quality, recognition policies and period-end sales cut-off.

  • IFRS 15 five-step model applied to material revenue arrangements
  • Contract terms reviewed for performance obligations, rebates and return rights
  • Sales cut-off tested using invoices, dispatch records and credit notes
  • Deferred revenue and contract liabilities reconciled to delivery obligations
  • Channel stuffing indicators examined through quarter-end shipment patterns
  • Revenue adjustments quantified for unearned, reversed or unsupported sales

Participants can identify sustainable margin drivers and cost adjustments affecting EBITDA.

  • Gross margin bridges isolate price, volume, mix and input-cost effects
  • Cost-of-sales classifications tested against purchasing and inventory records
  • Payroll costs reconciled to headcount, bonuses and severance schedules
  • One-off restructuring, litigation and professional fees assessed
  • Related-party charges evaluated against contracts, allocation bases and market rates
  • Supplier concentration and procurement commitments assessed for margin exposure

Participants can calculate normalised working capital and identify transaction adjustment issues.

  • Working capital definition aligned with the proposed purchase agreement
  • Monthly receivables, inventory and payables trends analysed
  • Days sales outstanding calculated by customer and ageing category
  • Inventory ageing tested for obsolescence, slow-moving stock and valuation risk
  • Accrued expenses reviewed for completeness, timing and normalisation
  • Seasonality adjustments derived from monthly balances and operating drivers

Participants can develop a defensible normalised working capital target for deal negotiations.

  • Trailing-month averaging compared with seasonally adjusted target methodologies
  • Working capital bridge separates operational movements from exceptional items
  • Completion accounts mechanics linked to target calculations and dispute points
  • Locked-box leakage risks assessed through post-reference-date balance movements
  • Customer advances, deferred income and deposits classified consistently
  • Target sensitivity tested against revenue growth, payment terms and inventory cycles

Participants can construct a net debt schedule and identify debt-like obligations.

  • Net debt definition reconciled to cash, borrowings and transaction terms
  • Bank debt confirmed through facility agreements, statements and covenant certificates
  • Lease liabilities assessed under IFRS 16 and transaction definitions
  • Factoring, supply-chain finance and receivables financing analysed
  • Deferred consideration, earn-outs and contingent liabilities evaluated
  • Cash restrictions, trapped cash and minimum operating cash identified

Participants can assess cash conversion, liquidity requirements and short-term funding risks.

  • Cash flow statement reconciled to movements in balance-sheet accounts
  • Operating cash conversion measured against EBITDA and profit after tax
  • Thirteen-week cash forecast built from receipts, payroll and supplier payments
  • Liquidity headroom tested against facilities, covenant limits and downside cases
  • Capital expenditure separated into maintenance, growth and deferred requirements
  • Cash taxes analysed for timing differences, exposures and payment profiles

Participants can identify material balance-sheet exposures requiring adjustment or protection.

  • Provisions tested against claims registers, legal correspondence and historical settlement patterns
  • Impairment assumptions reviewed for goodwill, intangibles and receivables
  • Fixed asset registers reconciled to depreciation, disposals and capital expenditure
  • Deferred tax balances assessed against underlying temporary differences
  • Intercompany balances reviewed for settlement terms and recoverability
  • Off-balance-sheet commitments identified from contracts and board papers

Participants can assess financial implications of tax, payroll and related-party exposures.

  • Tax returns reconciled to tax expense, payments and balance-sheet positions
  • Payroll liabilities tested against wage records, bonuses and statutory contributions
  • Transfer pricing charges evaluated using agreements and allocation methodologies
  • Related-party transactions traced through ledgers, contracts and board minutes
  • Management remuneration separated between recurring costs and transaction-related payments
  • Potential exposures quantified with assumptions, ranges and responsible owners

Participants can test management forecasts and quantify key valuation and funding sensitivities.

  • Forecast model integrity tested through formula checks and reconciliation
  • Revenue assumptions challenged using pipeline data, conversion rates and churn
  • Margin forecasts compared with historical performance and contracted cost changes
  • Working capital assumptions linked to growth, payment terms and inventory plans
  • Downside scenarios modelled through volume, margin and cash sensitivities
  • Forecast credibility rated using evidence quality, ownership and track record

Participants can connect diligence findings to valuation, price mechanisms and transaction protections.

  • Enterprise value reconciled to equity value through net debt adjustments
  • Quality of earnings adjustments assessed for valuation multiple implications
  • Completion accounts and locked-box mechanisms compared for financial risk allocation
  • Earn-out metrics tested for measurability, accounting consistency and manipulation risk
  • Representations, warranties and indemnities linked to quantified findings
  • Purchase agreement schedules informed by working capital and debt definitions

Participants can document analyses that support review, challenge and transaction decision-making.

  • Workpaper standards establish source references, assumptions and reviewer evidence
  • Data lineage documented from source records to reported findings
  • Management explanations distinguished from independently corroborated evidence
  • Issue logs maintained with status, owner, impact and required action
  • Materiality applied consistently to findings, adjustments and report disclosures
  • Version control procedures protect calculation integrity during fast-moving transactions

Participants can communicate quantified financial findings clearly to deal stakeholders.

  • Executive summaries state findings, value impact and recommended actions
  • Quality of earnings schedules present adjustments with supporting rationale
  • Risk ratings combine financial exposure, probability and transaction consequence
  • Charts selected for trends, bridges, concentration and cash conversion
  • Findings wording distinguishes facts, judgement, assumptions and unresolved matters
  • Investment committee packs prioritise decisions required before signing

Participants can build, review and present a complete financial due diligence report and supporting workpaper pack.

  • Scope a diligence plan from transaction objectives and target information
  • Build quality of earnings, working capital and net debt analyses
  • Test revenue, margins, cash flow and forecast assumptions
  • Prioritise findings using quantified impact, evidence strength and deal relevance
  • Prepare an executive report with recommended pricing and protection actions
  • Present conclusions and defend analysis before a simulated investment committee

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Financial due diligence scoping and information request template
  2. Quality of earnings bridge and adjustment register
  3. Normalised working capital target model
  4. Net debt and debt-like items schedule
  5. Forecast challenge and downside sensitivity model
  6. Financial due diligence report and workpaper checklist

Who should attend

  • Corporate Finance Managers — assess acquisition targets and support transaction decisions
  • Financial Controllers — prepare, review or respond to diligence findings
  • Investment Analysts — evaluate earnings quality and downside risks before investment
  • M&A Professionals — structure diligence workstreams and interpret financial findings
  • Credit Analysts — test repayment capacity, liquidity and covenant risk
  • Internal Audit Managers — investigate financial risks and evidence trails during transactions

Skills and tools covered

Quality of earningsWorking capital analysisNet debt assessmentCash flow modellingForecast challengeDue diligence reporting

Tools and standards

IFRS, US GAAP, IFRS 15, IFRS 16

How the course runs

Training methodology

The course uses short instructor briefings followed by transaction-style financial analysis. Participants review management accounts, trial balances, customer data, debt schedules and forecast models drawn from realistic deal scenarios. Group exercises test alternative explanations for earnings movements, working capital changes and cash shortfalls. Simulations cover data-room requests, management meetings and investment-committee reporting. Throughout the course, participants develop workpapers for a connected case and adapt the methods to their own transaction, investment or lending responsibilities.

Requirements and prerequisites

Participants should be comfortable reading income statements, balance sheets and cash flow statements, and should understand basic accounting entries, accruals, depreciation and financial ratios. Experience with management accounts, budgeting, audit, corporate finance, lending or investment analysis is useful. Participants should be able to work confidently with spreadsheet calculations and charts. Prior M&A, valuation or financial due diligence experience is not required. The course does not assume expertise in tax law, legal due diligence, advanced financial modelling or a particular accounting software package.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants need working knowledge of financial statements, accounting entries and spreadsheet calculations. Prior M&A, valuation or due diligence experience is useful but not required.

Bring a laptop with spreadsheet software for case analysis and model-building. Participants may also bring a redacted transaction issue, financial review question or reporting format from their workplace.

The course is designed for corporate finance, controllership, investment, lending, M&A and internal audit professionals. It is particularly relevant for staff who review target-company financial information or prepare their own organisation for diligence.

Valuation training focuses on estimating enterprise or equity value, while financial modelling training focuses on constructing models. This course tests the reliability of financial inputs, identifies adjustments and links findings to price mechanisms and deal protections.

Participants can use the information request list, earnings bridge, net debt schedule and working capital model on active transactions, lender reviews or internal investment cases. The workpaper methods also apply to vendor due diligence and financial health reviews.

Each training day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The first part establishes diligence scope and core analyses; the second part deepens forecast, transaction and reporting work before the final capstone presentation.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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