FDD Timeline: What to Expect
A realistic timeline for a Financial Due Diligence engagement, from kick-off to final report, with milestones and what analysts do at each stage.
One of the most useful pieces of context for a TS interview candidate is understanding how long FDD actually takes, and what happens at each stage. The timeline varies by deal size and complexity, but the structure is broadly consistent.
Overview: Typical FDD Timelines
| Deal Size | Typical FDD Duration |
|---|---|
| Small (EV <€30m) | 2–3 weeks |
| Mid-market (EV €30m–€200m) | 3–5 weeks |
| Large (EV >€200m) | 5–8 weeks |
| Complex / cross-border | 8–12 weeks |
These timelines run concurrently with other workstreams (legal, tax, commercial DD) and are often compressed by deal dynamics.
Week 1: Engagement Setup and Data Room Access
- Day 1–2: Engagement letter signed, scope confirmed with client, team assembled
- Day 2–3: Information request list sent to management or sell-side adviser
- Day 3–5: Data room opens, initial downloads and organisation
- End of Week 1: Preliminary model structure built, key data gaps identified
Analyst focus: Building the initial P&L model, understanding the data room structure, identifying major gaps in information.
Week 2: Analytical Deep-Dive
- Build the historical P&L for all reporting periods
- Begin the NWC history analysis
- Start the net debt schedule
- Identify all potential EBITDA adjustment candidates
- Draft the management Q&A list (typically 40–80 questions)
Analyst focus: Excel modelling, deep analysis of financial data, cross-referencing management accounts against statutory accounts.
Week 2–3: Management Q&A Session
- A video call or on-site meeting with the target's CFO and finance team
- The FDD team presents preliminary findings and asks detailed questions
- Management responses are noted and followed up in writing
- Major adjustments may be agreed or contested at this stage
Analyst focus: Preparing for Q&A, participating in the call, updating models immediately after based on new information.
Week 3–4: Report Drafting
- Draft QoE, NWC and net debt sections
- Internal review by manager and director
- Multiple rounds of revision
- Client updated on key findings (often via a preliminary findings call or "red flag" email before the full report)
Analyst focus: Writing clearly, handling reviewer comments, building final schedules for the appendices.
Week 4–5: Final Review and Delivery
- Partner or director review
- Legal review (for reliance language)
- Client receives draft report
- Client Q&A and any final adjustments
- Final report delivered
Post-Delivery
In completion accounts deals, the TS team may be re-engaged post-closing to:
- Review or prepare completion accounts
- Resolve disputes
- Calculate earn-out payments
The Crunch Moments
Experienced TS professionals consistently identify two points in the timeline as the most intense:
- The 48 hours after the management Q&A: The model and draft findings update dramatically based on new information received.
- The final 48 hours before report delivery: Partner review comments, late-breaking issues and client pressure all converge.
Conclusion
Understanding the FDD timeline helps you ask informed questions in interviews and demonstrates genuine familiarity with how deals work. It also prepares you for the reality of the workstyle you are entering.
The Transaction Services Interview Programme (€119.99, one-time) uses realistic deal timelines and scenarios to prepare you for the intensity and structure of real FDD engagements. Enrol today.