Mergers and Acquisitions: Financial Due Diligence and Valuation (AF-056) Training Course

Mergers and Acquisitions: Financial Due Diligence and Valuation

Many acquisitions destroy rather than create value, often because buyers overpay, misunderstand the target's real earnings or underestimate the effort required to…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

Many acquisitions destroy rather than create value, often because buyers overpay, misunderstand the target's real earnings or underestimate the effort required to integrate it. Careful financial due diligence and disciplined valuation are the most effective defences against these mistakes.

This training course takes participants through the financial side of the transaction process, from strategic rationale and target screening to valuation, due diligence, deal structuring and post-deal integration. Participants learn how to analyse quality of earnings, normalised working capital, net debt and hidden liabilities, and how to apply discounted cash flow, trading comparables and precedent transaction methods.

The course also examines synergies, purchase price mechanisms, earn-outs, financing choices and the key financial issues in sale and purchase agreements, giving participants a well-rounded understanding of how to support better deal decisions.

Course Objectives

By the end of this training course, participants will be able to:

Describe the stages of the merger and acquisition process and the role of finance in each
Assess the strategic rationale for a transaction and screen potential targets
Conduct financial due diligence on earnings quality, working capital, net debt and liabilities
Value businesses using discounted cash flow, trading comparables and precedent transactions
Estimate and challenge revenue and cost synergies and integration costs
Understand purchase price mechanisms, earn-outs and common deal structures
Identify key financial terms and protections in transaction documents
Plan financial integration and track value creation after completion

Target Audience

This training course is suitable for a wide range of professionals, including:

Corporate development and M&A professionals
Finance directors, controllers and senior accountants
Investment analysts and private equity professionals
Strategy managers evaluating growth options
Auditors and advisors involved in transaction services
Treasury and corporate finance staff
Legal and commercial professionals supporting transactions

Training Methodology

The course follows a simulated acquisition from start to finish. Short briefings introduce each stage, after which participants analyse target financial information, build valuation models in spreadsheets, prepare due diligence findings and negotiate key deal terms in teams. Real-world transaction examples illustrate common pitfalls and good practice.

Target Competencies

Financial due diligence
Business valuation
Synergy assessment
Deal structuring awareness
Transaction risk analysis
Post-merger financial integration

Course outline

1Day One: Strategy and the Transaction Process

Why Companies Acquire: Growth, capabilities, scale and diversification motives
Why Deals Fail: Overpayment, poor integration and flawed assumptions
The Transaction Process: Screening, approach, diligence, negotiation and completion
Target Screening: Strategic, financial and cultural fit criteria
Confidentiality and Information Flow: Data rooms and management presentations
Roles of Advisors: Bankers, accountants, lawyers and specialists
Case Study: Assessing the strategic logic of a proposed acquisition

2Day Two: Financial Due Diligence

Scope of Financial Due Diligence: Priorities based on deal risks
Quality of Earnings: Normalising EBITDA and identifying one-off items
Net Working Capital Analysis: Seasonality and normal levels
Net Debt and Debt-Like Items: Provisions, leases, pensions and deferred liabilities
Cash Flow and Capital Expenditure Review: Sustainability of performance
Tax and Off-Balance-Sheet Exposures: Identifying hidden liabilities
Workshop: Preparing a due diligence findings summary

3Day Three: Valuation Methods

Valuation Principles: Value versus price and standalone versus investment value
Discounted Cash Flow Valuation: Forecasts, discount rates and terminal value
Trading Comparables: Selecting peers and applying multiples
Precedent Transactions: Control premiums and market conditions
Valuation Bridges: From enterprise value to equity value
Reconciling Valuation Results: Ranges, judgement and sanity checks
Practical Exercise: Building a valuation model for the target company

4Day Four: Synergies and Deal Structuring

Revenue and Cost Synergies: Identification, quantification and timing
Integration Costs and Dis-synergies: Realistic estimates
Purchase Price Mechanisms: Locked box and completion accounts
Earn-Outs and Deferred Consideration: Aligning interests and managing disputes
Financing the Deal: Cash, debt, equity and leverage considerations
Key Financial Protections: Warranties, indemnities and price adjustments
Negotiation Simulation: Agreeing price and key financial terms

5Day Five: Integration and Value Delivery

Integration Planning: Day-one readiness and the first hundred days
Financial Integration: Reporting, controls, systems and policies
Tracking Synergy Delivery: Measures, owners and reporting
Purchase Price Allocation and Goodwill: Accounting awareness for finance teams
Post-Deal Reviews: Learning from completed transactions
Ethics and Governance in M&A: Conflicts, disclosure and board responsibilities
Final Exercise: Presenting an investment recommendation to the board

Frequently asked questions

How long is the Mergers and Acquisitions: Financial Due Diligence and Valuation course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Mergers and Acquisitions: Financial Due Diligence and Valuation course?

The next public date is 7 - 11 Dec 2026 in London. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in London, Barcelona, Frankfurt, Vienna, Amsterdam, Cape Town, Dubai, Geneva, Kuala Lumpur, Madrid, Paris, Rome.

Can I take Mergers and Acquisitions: Financial Due Diligence and Valuation online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Mergers and Acquisitions: Financial Due Diligence and Valuation

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

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