Due diligence group career overview
These groups perform “financial due diligence” on behalf of acquirers of companies to analyze the target companies’ financial statements and overall financial health. A career in the financial due diligence team can require long hours when on a transaction and requires forensic level accounting and analysis.
The personality of someone suited to work in the financial due diligence division of an accounting firm typically has the following character traits:
- Highly ambitious/driven to succeed
- Excellent accounting skills
- Communicates effectively
- Attention to detail
- Organized, structured, and detailed
- Ability to work long hours
Interview prep requires a very solid understanding of accounting and financial analysis. We recommend using our accounting interview guide in conjunction with our equity research interview guide to round out the financial analysis.
There are various entry points into the due diligence groups at accounting firms. Some enter straight out of school, others move into the group from another division in the firm.
Professionals in the financial due diligence group have several options: they can move up within the group and have a very rewarding career, they can move into another group in the accounting firm such as audit, or they can move to the corporate side.
Due Diligence compensation
Below is a guideline of how much you can earn in the due diligence group. It should be noted that there can be a wide range based on the accounting firm, the year, and the city that you’re working in.
Associate: $60,000 to $90,000 (base salary plus bonus)
Manager: $90,000 – $150,000 (base salary plus bonus)
Director/VP: $150 – $300,000 (base salary plus bonus)
Partner: $300,000 – $1 million+ (including equity)
Due Diligence course work
It’s important to start with a solid understanding of accounting fundamentals for a due diligence career path. Next, you should have a solid Excel crash course under your belt, which will teach you the basics including shortcuts, formulas and functions. From there you can progress to financial modeling courses, which will be required for your day to day work. By taking a several different courses you’ll learn about various industries and see different types of model.
If you want the best value for your money, be sure to check out CFI’s Full Access Bundle.