From #REF’d Models to Modern Workflows: A Guide to FP&A for Due Diligence Teams

Financial Planning & Analysis (FP&A) is a critical component of any due diligence process, providing the foundation for valuations, scenario modeling, and strategic decision-making. Yet, many corporate finance and investment teams still rely on legacy spreadsheets—tools that, while powerful, often become a tangled web of broken formulas, outdated assumptions, and inefficient workflows.

In this post, we’ll explore how spreadsheets are currently used in due diligence, the common pitfalls professionals face, why Excel add-ons and “bandaid” solutions fail to solve the deeper issues, and why Countercyclical has emerged as the go-to platform for streamlining due diligence FP&A from start to finish.

How Spreadsheets Are Used in FP&A During Due Diligence

1. Valuation and Financial Modeling

Excel remains the default tool for building:

• Discounted cash flow (DCF) models.

• Comparable company analyses.

• Sensitivity tables and scenario planning.

2. Forecasting and Budgeting

Spreadsheets are used to project target company performance, incorporating historical financials and future assumptions.

3. Data Consolidation

Teams manually pull data from multiple sources—public filings, data rooms, and internal reports—into complex, interlinked spreadsheets.

While Excel’s flexibility is unmatched, its ad-hoc nature often creates a fragile framework for due diligence, especially under tight timelines.

The Problems with Legacy Spreadsheet Solutions

1. Fragility and Errors

• #REF! Errors: Broken links and formula dependencies can derail entire models.

• Human Error: A single incorrect cell entry can distort valuations by millions.

2. Version Control Chaos

• Multiple stakeholders editing different versions of the same file creates confusion, duplicated work, and risk of misalignment.

• Cloud-based Excel doesn’t fully solve these problems when dozens of stakeholders are involved.

3. Time-Consuming Data Aggregation

• Pulling and cleaning data is often more time-intensive than actual analysis.

• Manually updating models for new inputs or scenarios is inefficient and prone to mistakes.

The Issue with Superimposed Excel Add-Ons and “Bandaid” Solutions

Over the years, countless Excel add-ins and financial modeling plugins have attempted to “fix” spreadsheet pain points. Tools like FactSet, Capital IQ’s Excel plugin, or custom macros improve data sourcing or formula auditing—but they don’t address the underlying workflow problem.

Why “bandaid” tools fail:

• They make models more complex and harder to audit.

• They require steep learning curves and ongoing IT maintenance.

• They do not solve the collaboration gap across teams.

Ultimately, these add-ons layer complexity on top of complexity, without delivering the streamlined workflows needed for modern due diligence.

Why Corporate Professionals Choose Countercyclical

Countercyclical replaces the fragmented spreadsheet-add-on ecosystem with a centralized, intelligent platform designed for FP&A and due diligence workflows.

1. Centralized Data & Models

• All financial data, historicals, and forecasts live in one platform—removing the need for endless manual updates and file-sharing chaos.

2. Smart Financial Modeling

• Pre-built templates for valuations, scenarios, and sensitivity analysis eliminate formula fragility and reduce human error.

3. Real-Time Collaboration

• Teams can work together on models, research, and reporting without worrying about version control or broken links.

4. Integration with Market Intelligence

• Pull real-time market and company data directly into Countercyclical’s models, bypassing time-consuming manual data entry.

5. End-to-End Workflow Coverage

From target identification to post-close monitoring, Countercyclical supports every stage of the due diligence lifecycle—no add-ons or hacks required.

Countercyclical vs. Legacy Spreadsheets

While spreadsheets will always have a place in finance, the modern due diligence team needs more than Excel. Legacy tools, add-ins, and “quick fixes” cannot match the speed, accuracy, and collaborative power of a platform built for end-to-end financial research and FP&A.

Countercyclical delivers a next-generation solution that empowers due diligence teams to move from #REF’d spreadsheets to elegant, insight-driven workflows.

Ready to transform your due diligence FP&A process?

Schedule a demo and see how we streamline financial modeling and analysis from start to finish.