Hi guys, I haven’t been on AF lately because of personal reasons but I just signed up to take the June exam so I’m back! Anyways, I have an interview tomorrow for an M&A Analyst position full time and I was wondering what type of technical questions I can expect? It is at a boutique firm with 11-50 employees if that helps. I am still in undergraduate and I don’t have much experience in this field… any advice or resources would be much appreciated. Thanks!!
SJZ, is the position in FL?
nope im in California
I worked for an M&A boutique (not anymore). I would know how to value a Company based on market multiples (EV/EBITDA), and FCF models, plus demonstrate your proficiency in excel. I would review basic accounting principles. Be able to identify what makes a good sell side M&A client (recurring revenue, strong cash flow, low customer concentration, attractive industry etc., lots of willing buyers) I would also describe how you are a hard worker and willing to put in the hard yards to be a bitch for the senior bankers. Ask interesting questions about whether the firm is a generalist or a specialist in certain industries. Look up some deals the firm has done and ask questions.
i would assume that you would be doing a lot of grunt work - diligence and modeling. if i were interviewing an analyst, i’d ask - what makes a company a good acquisition target? - what types of events could kill a deal - if you don’t have a modeling test, you’ll have to discuss synergies and how 1+1+synergies=4 disclosure: i may be thinking of this with a buy-side bias
Thank you for the input! Round 1 was pretty general, with a few technical questions (how to value public company, private company, valuation techniques, M&A process, etc.) She said round 2 would be with the managers I would be working with, so if I get R2 I will prepare a lot better… Any more advice or tips would be great, thank you thommo and dspapo!
I would check out www.mergersandinquisitions.com There are some pretty extensive IBanking interview articles there.
SJZ Wrote: ------------------------------------------------------- > Hi guys, > > I haven’t been on AF lately because of personal > reasons but I just signed up to take the June exam > so I’m back! > > Anyways, I have an interview tomorrow for an M&A > Analyst position full time and I was wondering > what type of technical questions I can expect? It > is at a boutique firm with 11-50 employees if that > helps. > > I am still in undergraduate and I don’t have much > experience in this field… any advice or resources > would be much appreciated. > > Thanks!! What above posters said. Qualitatively - Examples on how you’ve worked ungodly hours in the past, when you’ve just taken one for the team to get something done, being able to keep ABSOLUTE ATTENTION TO DETAIL under stressful/tiring conditions Quantitatively: Being able to walk through a full blown Accretion/Dilution modeling (pro-forma statements and all). What drives the merger? What kind of synergies can you expect? How do you integrate revenue synergies into your model? Combined company’s wacc? BUT also know basic accounting, enterprise vs. equity multiples, multiples driving certain industries (i.e. EV/reserves for E&P firm, P/BV for financial services firms). Assuming a boutique that’s not big name (GHL, lazard, etc.) and is regional, expect heavy technicals. Many of these firms do not have training programs in place and some need to screen on technicals to make sure they don’t need to waste excessive amounts of time and energy training you. If justone thing: show enthusiasm, that you’re a winner (not some BO/MO hopeful), and that you can take on the workload and pressure with a smile
Thank you job and muffin. I got a 2nd and maybe final round interview at the office for next week with the M&A manager! I’m pretty excited by nervous at the same time, because I have never gone through a full-time interview process. I’m going to prepare all weekend and know the stuff you guys told me about very thoroughly.
SJZ Wrote: ------------------------------------------------------- > Thank you job and muffin. > > I got a 2nd and maybe final round interview at the > office for next week with the M&A manager! I’m > pretty excited by nervous at the same time, > because I have never gone through a full-time > interview process. > > I’m going to prepare all weekend and know the > stuff you guys told me about very thoroughly. Great stuff man. Just remember, this is your time.
job71188 Wrote: ------------------------------------------------------- > I would check out www.mergersandinquisitions.com > > There are some pretty extensive IBanking interview > articles there. this is one dude’s OPINION. The CFA is crap? The CPA is crap? okkkkkkkkkkkkkkkkkkkk. If this dude was a billionaire, i would care what he has to say…
The guy doesn’t say that the CFA or CPA is crap. He just says that those designations won’t help you very much in getting into I-banking. His opinion is that if your sole goal is to break into Ibanking, the 250 hours spent studying would be better spent networking or doing other things that will more directly help you get into Ibanking. I think thats a fair point.
job71188 Wrote: ------------------------------------------------------- > The guy doesn’t say that the CFA or CPA is crap. > He just says that those designations won’t help > you very much in getting into I-banking. His > opinion is that if your sole goal is to break into > Ibanking, the 250 hours spent studying would be > better spent networking or doing other things that > will more directly help you get into Ibanking. I > think thats a fair point. fact of the matter is if you didnt go IVY then you need something to show that you COULD have and that you have the same ability. I believe the CFA and CPA demonstrate ability, which is what firms want…ability along with talent, which can be proven through previous work experience.
muffin09 and thommo77 have given good points of advice. I have a few things to add, given my own experience interviewing for investment banking jobs in 2003-2004 as well as my experiences in private equity, both as an interviewee and interviewer. Now that you’re in your second rounds, you’ll probably get some more BEHAVIORAL questions. The THREE QUESTIONS you *must* answer flawlessly, as you hopefully did in your first round, are: - Why investment banking? - Why our firm? - Why now? Separately, there are other behavioral questions you should expect that relate to your understanding of the industry, as well as your personal qualities such as leadership, teamwork, resilience, and perseverance. Sometimes these questions will be portrayed in the form of “Tell me about a situation where…”, “key strengths,” or “key weaknesses.” You might also encounter situations where you’re asked about the role you’re interviewing for and what you’re expecting out of it. In all cases, you must demonstrate that you know what investment banking analysts do on the day-to-day, and that you have some idea about what it takes to be a successful financial analyst. Many candidates are also dinged here because they spend too much time focusing on saying the right things about themselves, and not enough time learning about the job that they’re actually interviewing for! Truly shocking. Furthermore, in the late rounds, interviewees that are generally polished are DINGED because they don’t understand the role they’re interviewing for, or that what they consider their key strengths don’t actually align with what the firm truly values. In fact, it’s always been a bit of a mystery as to why these candidates aren’t dinged earlier, but I can’t tell you how many times candidates that are otherwise intelligent and hard-working that don’t really know what investment banking is. In fact, it was for this reason that I did not get an investment banking internship when I interviewed during my junior year. I thought I knew what banking was and what bankers did, but I was so wrong. Fortunately, I was OK because I ended up getting an internship at a top asset management firm anyway. Nonetheless, I was determined not to make that same mistake during full-time recruiting, and naturally my efforts translated into positive results and I landed several investment banking offers before ultimately deciding to pursue equity research. Always be prepared; I learned the hard way during my junior year and was determined not to make the same mistake during full-time recruiting. On the TECHNICAL question side, the most important subjects you must understand are (1) company valuation and (2) financial statement analysis. You need to know how the three financial statements link together, and also have a sense as to how companies are valued and the pro’s and con’s associated with each valuation methodology. Depending on your background, your understanding of (3) the M&A process, (4) public markets, and (5) other peripheral finance topics like stocks, bonds and interest rates, currencies, and options might also be tested. However, you should be principally concerned with preparing for (1) and (2). I hope this helps. Good luck!
^ I’ll also add that my post above focuses more on the behavioral aspect of things since you’ve already made it to the second round. Typically, as you interview with more senior personnel, they care more about how well you’ll fit in and how much they’d enjoy working with you. Sure, be ready for technicals as well but don’t underestimate the importance of portraying yourself as the “banker” type, i.e. confident, team-oriented, diligent, and sociable. A lot of the time, people will tell you just to be yourself in an interview – and while you should never lose your sense of self, being yourself doesn’t always cut it. You are being interviewed for the role of “investment banking analyst,” and to the extent that the role is somehow different from “yourself,” you need to do what it takes to make yourself fit that role.
^^^ These last 2 posts sound pretty solid 2 me.
thanks, Viceroy! happy to help