Transaction Services - Financial Due Diligence (FDD) – Scope, Process & Key Analyses

This presentation is a practical, structured overview of Financial Due Diligence (FDD) — what it is, why it is performed, and how FDD conclusions are derived from financial data. It is designed for anyone who wants a clear and actionable understanding of the typical FDD work program, the logic behind normalizations/adjustments, and the outputs you can expect from an FDD.

What you’ll learn

• Purpose of FDD: what questions FDD is meant to answer and how it supports decision-making.
  

• How FDD is scoped: selecting the right focus areas depending on the business model and data situation.
  

• Core FDD modules typically performed:
  

  • Earnings and profitability review (incl. EBITDA normalization principles)
    

  • Cash flow and cash conversion review
    

  • Balance sheet review and key risk areas
    

  • Net debt and working capital concepts (definition logic and typical pitfalls)
    

  • Review of budgeting / business planning and consistency checks
    

• Adjustment logic: common categories such as one-off, pro forma, and carve-out adjustments, and how they are documented.
  

• A clearly structured slide flow from FDD definition → scope → analysis modules → adjustment logic → deliverables.
  

• A concise overview of related due diligence workstreams (for context) without shifting the focus away from FDD.
  

• Finance professionals who want a solid FDD foundation
  

• Junior to mid-level analysts in advisory / corporate finance / controlling
  

• Anyone preparing for FDD-related workstreams and wanting a structured “mental model”