The structure of a Quality of Earnings / Financial Due Diligence report: sections, content and what each part tells the buyer in an M&A transaction.
Understanding the structure of an FDD report is important both for passing the interview and for performing well in the job. Here's a breakdown of what a typical QoE / FDD report contains and why each section matters.
This is the most-read section of the report — and often the only section read by senior decision-makers. It must contain:
A strong executive summary is written after all the detailed analysis is complete. It translates complexity into actionable insight.
This section covers:
The purpose is to give the buyer confidence (or flag concern) about the sustainability of the top line.
The central analytical section:
This section directly feeds the valuation — every EUR 100k of normalised EBITDA added or removed has a direct multiplier effect on the price.
Items that didn't generate adjustments but are relevant to the buyer: customer contract renewal risk, dependence on key personnel, uncommitted capex requirements, post-closing integration costs.
When asked "what does an FDD report cover?", structure your answer around these five sections. Explain not just what's in each section, but why it matters for the buyer's decision. That's the difference between a recitation and a real answer.
The programme's case studies produce real FDD outputs — so you'll know exactly what a completed report looks and feels like.
Hundreds of candidates prepared their interviews with this programme. Those who landed the role have one thing in common: they worked the cases before walking into the room.
