Transaction Advisory Service - Resources/Concepts

TONA09's picture
TONA09 - Certified Professional
Rank: Baboon | banana points 123

Hi All

Prior to the end of the year I will be starting a new role within a Transaction Advisory Service department - which I believe will be mainly buy-side financial due diligence.

In order to hit the ground running - are there any useful resources I can get hold of or specific concepts I should look into prior to joining?

As it may impact some of the suggestions - I am a qualified accountant and have recently passed CFA level 1.

Thanks

Comments (5)

Aug 6, 2017

Bump

Aug 8, 2017

Some topics that come to mind are:
1. Quality of Earnings, i.e. adjustments to EBITDA for non-recurring or one-off items
2. Net debt: fully understand it, how you identify a cash- and debt-like items and what it is used for
3. Working capital analysis, adjustments to working capital, how it links to net debt and, again, what it is used for
4. Understand how to dissect revenue by various industries, i.e. understand the drivers

Aug 8, 2017

Thanks for your thoughts - all make sense. Hopefully I'll locate some useful resources that touch on these.

Aug 10, 2017

I think you will have a hard time finding specific resources on these topics. Usually if you look in a corporate finance or accounting books they will only cover these topics on a rudimentary level. Best would be if you could get your hands on a report from one of the big4 or maybe some of their training material. To be honest, the CFA wont do much for you. Having a really solid understanding of accounting will be key (being a qualified accountant does not equal solid understanding).

From googling, I found the following sources that may be a good start:

http://www.claconnect.com/-/media/files/presentati...
https://www.divestopedia.com/2/834/maximize-value/...
http://rsmus.com/pdf/wp_working_capital.pdf

Aug 11, 2017