Answers / Financial Due Diligence

Walk me through how you'd start analyzing a company you know nothing about.

An advanced Financial Due Diligence question — expect it in final rounds and case-heavy interviews (IB, PE, Big-4 Transaction Services).

THE SHORT ANSWER

1) Read the CIM (Confidential Information Memorandum) for business overview. 2) Download the monthly trial balance for 24–36 months. 3) Map the TB to a standard FDD P&L structure. 4) Build an EBITDA bridge (reported to adjusted). 5) Graph monthly revenue and EBITDA trends. 6) Calculate key KPIs (margins, DSO, DPO, DIO). 7) Identify the top 10 revenue items and top 10 cost items. 8) List initial questions for management.

WHAT INTERVIEWERS LISTEN FOR

  • ✓Read CIM for overview
  • ✓Download trial balance
  • ✓Map to standard P&L
  • ✓Build EBITDA bridge
  • ✓Graph revenue and EBITDA trends

COMMON MISTAKES

  • ✗Only uses public data
  • ✗Ignores trial balance
  • ✗Skips management questions

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