How to choose the right due diligence training course

Posted by Andrew Borowiec on Aug 8, 2018 4:56:06 PM

How to choose the right due diligence training courseIf you’ve got as far as reading this article, we know you’re serious about developing your career in due diligence. But being committed to personal development doesn’t automatically make it easy to choose due diligence training.

Picking the right due diligence course can be tough, so we’ve put together a guide for the things you need to consider when making the decision. In addition, we’re also offering you the chance to complete a questionnaire, so an IMDDA advisor can provide you with a bespoke recommendation, tailored to your unique background.

Decision Criteria 1: Experience Level

What we mean: When we say experience level, we’re looking at a combination of how many years you have in the industry and your level of proficiency in due diligence. The reason for looking at both is that a higher number of years in due diligence often builds a lot of valuable background knowledge and related skills, whereas assessing your proficiency in performing due diligence pertains more to your specific knowledge of the investigation process.

Why it affects your decision: Understanding your own experience level and matching it to that of your chosen due diligence course is critical, because a misjudgment here will see you bored or out of your depth, either way missing much of the value of the course.

Decision Criteria 2: Asset Class Focus Area/s

What we mean: Are you interested in or mainly working on one or more of the following?

  • PE/VC
  • Hedge Funds
  • Real Estate/Real Assets
  • Registered Investment Vehicles
  • Fund of Funds/Fund of Managers
  • Private Credit
  • Direct Investments
  • CTA/CPO
  • M&A

Why it affects your decision: The specifics of due diligence can vary quite significantly depending on the asset class in question. Whilst many of the general principles are transferable, due diligence training that goes into the specifics of how you conduct an investigation into a particular asset class will reveal more niche tips that will enable you to be more effective.

Decision Criteria 3: Due Diligence Type

ODD, IDD, both?

What we mean: When we speak of the type of due diligence you are required to undertake, we mean investment due diligence, operational due diligence or both.

Why it affects your decision: As with asset classes, the emphasis of your due diligence training changes depending on the type of due diligence you are required to undertake. A more technical skill set assessing the specific financials of the investment will be required in investment due diligence course, whereas an operational due diligence certificate will focus more on interrogating culture, policies and procedures for their robustness and suitability.

Decision Criteria 4: Due Diligence Methodology

What we mean: What we mean here is firstly, do you create your own due diligence questionnaire or do you use another industry standard one? Secondly, does your role require you to conduct onsite meetings or are you reviewing data and reports or both?

Why it affects your decision: There is little point wasting your time learning how to do elements of due diligence that you are not required to do or alternatively don’t aspire to do as you progress in your role or career. Making sure your chosen due diligence certificate covers only what you want or need to know is the smartest use of your time. However, in many cases learning and incorporating these untapped areas can improve your organization’s due diligence, so you may wish to consider a due diligence course that includes them.

Conclusion

As you’re now even more acutely aware, there is no one size fits all approach to due diligence training and the due diligence course you choose must be a good fit for your experience levels, working practices and focus areas.

It remains only to reiterate our earlier offer of a free consultation with an IMDDA advisor to match you with a due diligence certificate appropriate to your profile. Complete the questionnaire here and someone will be in touch.

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