Why Moelis Interview Questions
How to answer the question "Why Moelis?"
What is Moelis & Company?
Moelis & Company is an American investment bank that offers financial advisory services. The firm operates globally in 14 countries, including New York City, Los Angeles, Amsterdam, Dubai, Mumbai, and Paris.
The company’s estimated annual revenue is about 1 billion dollars, with assets under management (AUM) totaling around 100 billion dollars.
Some of the company’s services include:
- Mergers and Acquisitions (M&A)
- Shareholder Advisory
- Risk Advisory
- Dispute Advisory
- Capital Structure Advisory
- Capital Markets
- Private Funds Advisory
Like every financial institution, the firm lives by certain values and a mission. The company aims to assist clients in their strategic goals by providing integrated financial advisory services.
While explicit information about Moelis' core values was challenging to find online, the company's culture indicates that three key values hold significance:
- Partnership: Moelis emphasizes collaboration and values the growth of individuals within the workplace.
- Passion: Passion is how enthusiastic and dedicated someone is to their work. It refers to exceeding expectations and delivering exceptional products and services.
- Hard Work: Hard work is about handling the high-pressure life at an investment bank and having a gritty mindset.
You can read more about it here.
Before applying for a position at Moelis, learn about the interview process. From reading Wall Street Oasis’s interview questions site for Moelis, it is clear that there are multiple steps in the interview process.
These steps are:
- Application
- PwC online tests: Numerical test and a comprehension test. Links to these online tests will be emailed to you or can be found in the employee portal.
- First-round interview: Conducted via phone, primarily consisting of behavioral questions
- Video interview: 30-minute interview involving a current Moelis employee and a mix of behavioral and technical questions
- Superday: Two 30-minute interviews with a focus on both behavioral and technical questions (more technical questions than previous rounds)
- Offers extended
- Accept the offer and join the firm!
Read about the firm here.
Interview Tips
Here are eight tips to do well in a Moelis interview.
- Familiarize yourself with common interview questions and practice your responses.
- Show your passion for finance
- Emphasize problem-solving skills
- Highlight how you resonate with Moelis’s partnership, passion, and hard work values.
- Review financial statements and financial models
- Understand how to perform valuations
- Showcase how well you can communicate with others
- Research Moelis & Company, particularly its recent deals and culture.
These are the tips that have helped candidates in the past. Obviously, these are not a golden ticket to landing the job, but these will certainly put you on the right track.
Why Moelis Interview Question
When investment banks ask the question, "Why us?" during an interview, it holds significant weight in determining whether you secure the job.
The answer explains why you would like to work at the firm, what you bring, how you will be different from every other employee, and your motivation and story.
To make your answer exceptional, consider the following elements:
- Start by expressing your growth aspirations
- Use an anecdote to make the response more personal
- Describe how Moelis’s values resonate with you
- Avoid salary discussion
An example response is:
“I am excited to interview with Moelis & Company. The firm has a well-developed reputation in the investment banking industry. I am interested in working here as the firm also has a reputation for delivering the highest-quality services and products. I believe the firm is the right fit for me.
Moelis has 3 values: partnership, passion, and hard work. I am keen to work here as the firm values collaboration and transparency. I want to work at a company where I can openly interact with others.
I have held positions at firms where communication is close to 0, and the environment felt constricting. I have learned through the years that I prefer an open environment as that is where I feel most productive and learn more.
I highly regard the firm as the work is with a diverse clientele. I want to get involved with clients globally, and thankfully Moelis offers this. In particular, I want to work in M&A.
The nature of M&A is dynamic, and there is a lot to learn. I believe the challenge of working in M&A and the dynamic workplace makes M&A an attractive role for me at Moelis.
The last bit of Moelis that attracted me to apply for this role was the diverse workplace. As a global leader in investment banking, one would expect employees worldwide. I applaud this aspect of the company as it means there are so many stories to hear.
I hope to learn from the plethora of experiences I hear at the firm and offer well-rounded solutions. I am excited about working with a diverse group of individuals.
The firm’s commitment to employee training and bringing unique perspectives to conversations is exactly what I need. I would love to be a part of such a driven environment.
All in all, there are several reasons why I want to work here. I believe I bring a lot to the table and can broaden my horizons as well.”
Here is another sample response:
“I am excited by the prospect of joining Moelis. I am captivated by the firm’s commitment to excellence. I would like to break into investment banking, and I feel that this firm will allow me to do so.
I have experience working with teams, and I believe my idea of a partnership aligns with the value.
I am eager to keep developing myself. In my free time, I take courses and like to attend seminars held by respectable investment bankers. I am invested in my career, and I believe Moelis will allow me to reach my goals.
Moelis’s global presence will allow me to gain exposure to the field. This is ultimately what I want. Breaking into investment banking involves picking up all the facets of the business. I will be exposed to diverse industries, thereby broadening my horizons.
I look forward to working here.”
Why Moelis Interview Questions: Behavioral Questions
During the Moelis interview process, behavioral questions are commonly asked to assess a candidate's thought process, behavior in various situations, ability to handle pressure, and suitability for the role.
Through your answers to these questions, the interviewer will understand if the firm is really for you. Make sure to prepare well and give well-thought-out responses.
Ensure you describe the challenges you have endured, the actions you took to get around the challenge, and the outcome of your actions. Although behavioral questions seem laid-back, the answers you give to these questions should draw from professional experiences.
Examples of behavioral questions include:
Moelis Behavioral Interview Questions
Speaking from the heart and being genuine in your response is crucial during an interview. There is no cookie-cutter answer for this. Be personal. Interviewers can tell if you use a generic answer that you searched online.
Sample answer:
“My interest in investment banking stems from my passion for finance. Since high school, I have been interested in personal finance, which has translated into a career for me. I want to help clients with their financial needs.
At Moelis, I hope to work in M&A so that I can work with strategy and get exposure to various industries.
Investment banking piques my interest as no work day is the same as the one before. I look forward to the dynamic aspect of the job as I will continuously grow my horizons and learn more about industries and markets.
I want to work in investment banking so I can have an impact in the financial world.”
Answer this question by highlighting your course of action to work through this problem. Describe the client’s steep demands and your problem-solving skills.
Sample answer:
“While working through a deal, my client had high asks and asked for revisions about 10 times in the week leading up to the presentation of the deal. My team and I listened to the requests and accommodated the client. Although it was inconvenient, we did not want to lose this client.
My team and I were flexible, and we sat through a full-day review system where we walked through each step of the deal with the client to ensure we addressed all of their requirements.
By being understanding and putting the client first, we were able to work through the deal successfully. The client is now a longstanding client of the company.”
Answer this question by using the STAR method. Speak about the situation, the task, the actions taken, and the results.
Sample answer:
“When our team leader suddenly resigned, I was asked to be the interim leader. I re-evaluated tasks, delegated tasks to team members, and motivated everyone to stay together. Although everyone was affected by the change, we had a job to do, and our deadline was coming up.
We ended up completing the project by the deadline and received praise from our manager.”
Answer this question by choosing an experience that applies to the workplace and demonstrates your ability to adapt. Ensure you also emphasize what you learned.
Sample answer:
“When working on a deal at my last job, my team and I were surprised by newly-enacted regulations. Everyone was panicking as we had to go back and change the majority of the deal.
I kept everyone together, held a team meeting to go over the new regulations, and designed a new deal. I communicated effectively, so the deal succeeded. I think this experience taught me to stay composed as there is always an alternative method.”
Use the STAR approach to answer this question. Help the interviewer understand why you had to persuade others. Responses to behavioral questions often fall through because the candidate does not explain the situation enough.
Sample answer:
“During a team project at a position I held 6 years ago, I had to oversee 76 team members. It was a rewarding experience as I learned to work with many personality types.
Speaking of personality, 16 people did not adopt a new strategy in their presentations. I brought these 16 people into my office and explained the nature, the pros, and the cons of the strategy. This seemed to get through to them.
Looks like all they needed was a proper explanation. Through listening to them and addressing their concerns, I gained their support. And they were more open with me from the next time on. They could talk to me about anything.
Successfully adopting the strategy resulted in financial gains for the company and improved my relations with my team.”
Answer behavioral questions by describing everything possible. Set the scene, use the STAR method, and connect it to Moelis’s values. Good luck!
Why Moelis Interview Questions: Technical Questions
The other type of questions asked during an interview are technical questions. These are designed to assess a candidate's understanding of industry-specific concepts, knowledge of relevant theoretical frameworks, and ability to apply that knowledge effectively.
Each position may have unique technical requirements, so tailor your preparation accordingly.
Examples of technical questions include
Moelis Technical Interview Questions
“Discounted cash flow analysis is a method to value an investment or project. It is based on the idea that the value of money decreases over time. DCF first forecasts cash flows. Then, the discount rate is determined.
The discount rate accounts for the risk premium and the time value of money. Next, cash flows must be discounted. Then, the net present value is calculated by summing present values.
Lastly, the net present value is compared to the initial cost or investment.”
“Leverage is the usage of debt to amplify returns. The way it works is by using some capital with borrowed funds to increase an investment’s returns.”
“Weighted average cost of capital is a metric to determine how much a business pays to finance its assets, on average. The equation is
[(Weightage of equity * Cost of equity) + (Weightage of debt * Cost of debt)] * (1 - Tax rate).”
“The two methods to price an IPO are fixed price offerings and book building. Fixed price offerings involve a set price by the company. On the other hand, book building is the process by which an underwriter and the company operate on investor demand.
The underwriter and the company call forth bids from investors to settle on an offering price.”
“To conduct due diligence in an M&A deal, I would first need to look at both companies’ legal, operational, and financial aspects. I would need to review legal documents and financial documents. I must also assess the risks and ensure the benefits outweigh the expenses.
I would do all of this to get a valuation of the deal and if it is worth pursuing.”
Conclusion
Moelis is a competitive firm, so its interview process won’t be easy. But with hard work and a desire to learn, you will do amazing.
Moelis is a reputable institution, so handle the interview process attentively. Thousands of people apply for a handful of open positions. So, do your homework and utilize the tips and the example questions from this article.
Craft your answers with purpose, ensuring that every word contributes to conveying your thoughts effectively. Initially, it may be challenging to condense your responses, but with practice, you will understand the importance of brevity.
Interviewers can tell who has prepared and who has not. Stay calm and collected. Do not rush anything. Take your time and be honest.
You got this! This article, the Wall Street Oasis website, and the company site are great resources to check out.
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