There are many definitions for Due Diligence in the context of corporate finance transactions. Out of all of them, the following one captures the essence of our course:
“A future-oriented super audit to help minimize the risks and maximize the shareholder value creation in an M&A transaction” (Business Due Diligence Strategies - Jeffrey Weiner)
All the words of the definition are important. It definitely needs to be future-oriented, because nobody would buy a business for what it did in the past. “Super audit” refers to the ample scope and depth required in the exercise. And, finally, let’s not forget the objectives of the exercise: “minimize the risks” - which could ultimately mean you should not do the deal at all - and “maximize shareholder value” - for instance through adapting the transaction structure, lowering price or seeking contractual protection against findings of the Due Diligence process.
Note that the definition was focused on an M&A transaction, while in our course the scope will be broader, including capital markets trades.
The course will provide an overview of the typical fields subject to Due Diligence - both in M&A and capital markets situations. It will also look at the different phases of the processes, and will explain how Due Diligence plays a role in each one of them.
The course will describe the role that each party plays in the Due Diligence process and of the consequences of lack of accurateness or negligence for companies, managers, advisors and regulators.
Given that, for many reasons, the Due Diligence process is often not as complete as the buyer would want, we will also look at the more comprehensive protection that can be obtained through representations and warranties. The course will also look at the rest of the Share Purchase Agreement and other contractual matters around M&A transactions.
The course will follow a practical, not theoretical approach. Real life cases will be discussed in order to apprehend the main learning lessons they provide.
This course is designed to provide a general overview of how to approach a due diligence process for advisory professionals and executives of corporations. It will highlight the main areas of focus, the key documents and the most frequent issues to be addressed.
In addition, the course will pay special attention to how to translate the findings into price, transaction conditions or contractual protection through reps and warranties.
The course will also introduce case studies that will be helpful to relate all the theory to practical examples in actual M&A and capital markets transactions.
There is no previous knowledge required to be able to follow the course successfully. The provided reading material will help to get up to speed with the main areas of discussion.
The C.P. IPO of NetMedia plc will describe the complexity of financial DD in capital markets transactions, the price discovery mechanism, the process of setting the price range / deciding final pricing, and the risk of a drop in share price once the company is listed.
The C.P. IPO of Betanzos Bank will develop the different phases of Due Diligence during a capital markets transaction, the responsibility of the company and its advisors, the reputational risks and the role of regulators.
What Redcliffe’s clients are saying about the course and our trainer?
“Easy enough to understand for someone who has limited experience. Trainer kept us engaged and kept it interactive.”
“Experienced trainer, referenced real life situations.”
“Good overall coverage of process in broad scope. ‘Sell side process’ discussion was very helpful.”
“Very comprehensive, engaging and interesting case studies.”
Corporate Finance is one of the most popular areas of the financial services. We offer a broad range of related courses.
Corporate Finance Course
Training Course Area
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