Financial Due Diligence vs. Contracts and Closing Mechanisms
As a senior associate in Audit at a Big 4 firm, I’m anticipating upcoming interviews for positions in both Financial Due Diligence (FDD) and Contracts and Closing Mechanisms (CCM). While I’ve come across various Reddit discussions about FDD, I haven’t seen much regarding CCM.
I’m interested in hearing any insights you might have regarding the following aspects: the nature of the work, potential exit opportunities, work-life balance, and any other relevant information comparing CCM and FDD.
Here’s how I’m weighing the pros and cons of each:
FDD
- Pros:
- Exposes you to a broader range of financial statements than CCM.
-
Generally offers better exit opportunities compared to audit—and possibly CCM.
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Cons:
- Hours can be unpredictable.
CCM
- Pros:
-
Potentially better work-life balance compared to FDD?
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Cons:
- I’m unclear about the exit opportunities in CCM. I’m not looking to remain in Audit, internal Audit, or financial reporting for my entire career, so acquiring advisory experience is essential. I’m uncertain how CCM compares to FDD in terms of career advancement.
Having worked long hours in audit, I’m willing to continue for a few more years but ultimately aim for a role that aligns more closely with a 40-hour workweek, especially after 3.5 years in audit.
Another factor to consider is my desire to relocate. FDD has a moderate to small presence in my target city, but the CCM team does not. Both teams are fine with my move; however, CCM would afford me more remote work flexibility, while FDD likely requires more in-person collaboration at the office.
I appreciate any thoughts or experiences you can share! Thank you!
One response
It sounds like you’re at an exciting crossroads in your career! Both Financial Due Diligence (FDD) and Contracts and Closing Mechanisms (CCM) offer unique advantages and potential challenges, so you’re wise to weigh your options carefully.
FDD
Pros:
– Exposure to Financial Statements: As you mentioned, FDD gives you a broader view of financial statements and business operations, which can deepen your understanding of business health and performance.
– Exit Opportunities: FDD often leads to roles in private equity, corporate finance, or management consulting due to the analytical skills it fosters. These areas can provide significant career advancement and increased compensation compared to Audit.
Cons:
– Unpredictable Hours: Like Audit, FDD can involve long hours and high-pressure situations, particularly around closing deadlines, which might affect your work-life balance.
CCM
Pros:
– Work-Life Balance: You’re likely correct that CCM might offer a better work-life balance, especially if it allows for more remote work. This could be a significant factor if you’re looking for a more sustainable long-term lifestyle.
– Advisory Experience: While CCM may not be as widely recognized for exit opportunities as FDD, it does provide valuable advisory experience, particularly in transactional settings, which could be leveraged for roles in corporate development, compliance, or contract management.
Cons:
– Perceived Exit Opportunities: It’s true that the exit opportunities for CCM might not be as well-defined as FDD. However, this largely depends on how firms view the CCM skill set. The ability to navigate contracts and closing processes is valuable in many business contexts.
Other Considerations
City Dynamics: Since you’re planning to move cities, you’re right to factor in the presence of FDD and CCM teams in your new location. A lack of a strong CCM presence could limit networking and career growth opportunities in that area.
Your Career Goals: Think about where you see yourself in the next 5-10 years. If you’re aiming for a transition to private equity or high-level consulting, FDD might be the way to go. If you prefer a more operational or compliance-focused role, CCM could be a better fit.
Networking: Try speaking with professionals currently in both roles to gain insights into their experiences. This can provide clarity and help you make a more informed decision.
Ultimately, aligning your choice with your long-term career goals and desired lifestyle will be key. Best of luck with your interviews and future career decisions!