Due Diligence Masterclass

Due diligence of financial institutions requires a different perspective from conventional corporate analysis. Banks, microfinance institutions, leasing companies and other financial intermediaries face specific risks related to governance, asset quality, liquidity, capital adequacy, regulatory requirements and risk management. At the same time, investors increasingly need to understand how institutions address environmental, social and governance risks and integrate these considerations into their lending and investment activities.
This two-day programme takes participants through the complete due diligence process. Day 1 establishes the analytical foundation: participants examine how a due diligence assignment is scoped and prepared before assessing the institution's governance, organisational capacity, business model, credit processes and ESG and ESMS framework. Day 2 shifts the focus to financial analysis, corporate planning and investment decision-making. Participants work with financial statements and key banking ratios, review growth assumptions and projections, and bring the different strands of analysis together in an investment committee simulation.
Throughout the programme, practical exercises enable participants to apply the concepts to realistic financial institution data, governance information, financial statements, due diligence templates and planning assumptions.

This international masterclass is designed for experienced professionals involved in the assessment, financing, selection or monitoring of financial institutions. It is particularly relevant for professionals working with development finance institutions, donor agencies, investment and impact funds, banks and other financial sector organisations, as well as consultants and technical assistance providers. Participants who are responsible for investment analysis, credit and risk assessment, partner selection, relationship management or financial sector advisory will benefit from a structured approach to evaluating banks, microfinance institutions, leasing companies, factoring institutions and other financial intermediaries.

During this programme, participants will develop a practical framework for planning and conducting the due diligence of financial institutions from an investor and lender perspective. They will learn to assess governance and organisational structures, business models, credit processes, portfolio quality, financial statements, prudential indicators, risk management systems, ESG considerations and Environmental and Social Management Systems (ESMS). Participants will also strengthen their ability to identify red flags, test the plausibility of corporate plans and financial projections, evaluate potential mitigating measures and translate their findings into structured, evidence-based investment or partnership recommendations.

Analyse in Practice. Decide with Confidence.
This intensive two-day seminar is designed for professionals who want to strengthen their ability to assess financial institutions through applied, interactive learning. Participants benefit from expert-led sessions, realistic case material, financial analysis exercises and structured discussions that connect due diligence concepts with investment and lending practice.

• Practical exercises based on realistic financial institution information
• Financial statement analysis and banking ratio calculation workshops
• Case-based assessment of governance, ESG, ESMS and operational risks
• Group work, facilitated discussions and peer learning
• Investment committee simulation linking analysis to decision-making

The programme combines conceptual foundations with extensive application, enabling participants to practise the different stages of a due diligence process and develop a structured approach they can transfer directly to their professional work. Upon successful completion, participants receive a Frankfurt School Certificate.