Mergers and Acquisitions: Financial Due Diligence Training Course

Course overview

Most acquisitions that disappoint were not bad ideas; they were deals where the buyer did not fully understand what it was buying. Financial due diligence is the work that closes that gap: a structured examination of a target's earnings, cash flow, working capital, and risks, designed to confirm that the story behind the price holds up before the deal is signed.

This course develops that discipline across financial-statement analysis, quality of earnings, working capital and cash flow, valuation and modeling, risk and red flags, and how due diligence feeds negotiation and integration. It is built for people who work on or around transactions, and it is clear throughout that the content is educational and is not financial, legal, or investment advice.

Why this matters

A large share of acquisitions fail to create the value expected, and the roots often lie in due diligence: earnings that were not as clean as they looked, working capital that drained cash after closing, or risks that surfaced only later. The price paid rests entirely on the quality of that analysis.

Strong financial due diligence matters because it is the buyer's main defense against overpaying and against surprises after the deal. It shapes the price, the structure, and the integration plan. This course builds the ability to do that analysis rigorously and to communicate what it finds.

What you will be able to do afterwards

By the end of the course, participants should be able to:

• Plan and scope a financial due diligence exercise.
• Analyze financial statements and assess quality of earnings.
• Evaluate working capital, cash flow, and key risks.
• Use valuation and modeling to test the deal.
• Report findings and support negotiation and integration.

Course outline

Unit 1: Introduction to M&A and financial due diligence

The course opens with where due diligence fits in a deal.

• The M&A process and the role of due diligence.
• Types of due diligence and how they connect.
• Scoping the financial workstream.
• Information requests and data rooms.

Unit 2: Financial statement analysis for M&A

This unit covers reading the target's accounts.

• Quality of earnings and normalized profit.
• Revenue recognition and one-off items.
• Accounting policies and their effect.
• Trend and ratio analysis.

Unit 3: Working capital and cash flow assessment

This unit covers the cash behind the profit.

• Normalized working capital and the target peg.
• Seasonality and cash conversion.
• Cash flow quality and sustainability.
• Debt and debt-like items.

Unit 4: Valuation and financial modeling in due diligence

This unit covers testing the price.

• Valuation approaches and their assumptions.
• Building and stressing a financial model.
• Linking diligence findings to value.
• Worked modeling examples.

Unit 5: Risk identification and red flags

This unit covers what to watch for.

• Common red flags in target financials.
• Off-balance-sheet and contingent items.
• Customer, supplier, and concentration risks.
• Escalating and quantifying issues.

Unit 6: Scenario and sensitivity analysis in M&A

This unit covers testing the assumptions.

• Building scenarios around the base case.
• Sensitivity to key value drivers.
• Downside and break-even analysis.
• Communicating uncertainty honestly.

Unit 7: Synergy identification and deal structuring

This unit covers where value is meant to come from.

• Cost and revenue synergies and their reliability.
• Testing synergy assumptions in diligence.
• How findings shape deal structure.
• Earn-outs and contingent consideration.

Unit 8: Governance, legal, and tax considerations

This unit covers the surrounding diligence.

• How financial, legal, and tax workstreams connect.
• Tax exposures that affect value.
• Governance and control findings.
• Coordinating advisers.

Unit 9: Integration and post-deal challenges

This unit covers what happens after signing.

• Carrying diligence findings into integration.
• Common post-deal financial surprises.
• Tracking value capture against the case.
• Lessons from deals that disappointed.

Unit 10: Due diligence reporting and communication

This unit covers presenting the findings.

• Structuring a due diligence report.
• Separating findings from interpretation.
• Communicating to deal teams and boards.
• Highlighting deal-breakers clearly.

Unit 11: Negotiation support through due diligence

This unit covers turning findings into leverage.

• Using findings to adjust price and terms.
• Purchase-price mechanisms and adjustments.
• Warranties and indemnities informed by diligence.
• Supporting the negotiation team.

Unit 12: Capstone due diligence project

The final unit applies the toolkit to a case.

• A group due diligence on a sample target.
• Quality of earnings and key risks.
• Presenting findings and price implications.
• A summary report to take back to the workplace.

How the course is delivered

The course is led through structured explanation, worked numerical examples, documented deal case studies, and group discussion, finishing with an applied capstone project. Participants work through financial statements, working-capital reviews, and models and discuss the judgments involved. The content is educational and provides general information only; it is not financial, legal, investment, or tax advice, and real deals should involve qualified advisers. It connects naturally to Financial Due Diligence in Corporate Transactions.

Who should attend

This course suits corporate development and M&A staff, finance and FP&A professionals, accountants and advisers who support transactions, and managers involved in acquisitions. It works for those new to deal work and for experienced professionals who want a sharper due diligence toolkit. A working knowledge of financial statements helps.

About EuroQuest International Training

EuroQuest International Training was founded in 2015 by a team with more than 25 years of combined experience in professional training. The institute has delivered over 1,000 courses to more than 15,000 participants, and is headquartered in Bratislava, Slovakia, with training hubs in Dubai, London, Barcelona, Istanbul, Vienna, Paris, and Geneva. Courses are designed and reviewed by practitioners and updated to reflect current practice in each field.

Frequently asked questions

Is this course financial or investment advice?

No. It gives general, educational information on how financial due diligence is performed. It is not financial, legal, investment, or tax advice, and real transactions should involve qualified advisers.

Do I need to be an accountant to attend?

No, but a working knowledge of financial statements helps. The course explains the analysis as it goes and suits finance, corporate development, and adviser roles, not only accountants.

Does it include financial modeling?

Yes. Modeling, valuation, and scenario and sensitivity analysis are covered with worked examples, focused on testing a deal rather than on advanced modeling technique for its own sake.

Related courses

• Mergers, Acquisitions, and Corporate Transactions
• Advanced Corporate Valuation Techniques
• Legal Due Diligence in Business Transactions
• Financial Modeling and Forecasting Techniques

Register for this course

To reserve a place or ask about scheduling and city options for the Mergers and Acquisitions: Financial Due Diligence course, use the registration and enquiry options on this page and the EuroQuest team will follow up with the details you need.