Houlihan Lokey RX 90min test
Guys, i am currently interviewing for a grad role in HL RX team based in APAC, just passed the first round and will meet the asso and do a 90 min test (happen in 2 days). Anyone knows what the test is about? 3 statement modelling or would be a RX case study? Appreciate your insights.
Based on the WSO Dataset, the specifics of the Houlihan Lokey RX 90-minute test can vary, but here's a general idea of what you might expect, drawing from similar experiences shared:
Technical Proficiency: The test could involve a mix of technical questions aimed at assessing your understanding of financial modeling, particularly in restructuring contexts. This might include 3-statement modeling exercises to evaluate your ability to integrate income statements, balance sheets, and cash flow statements accurately.
Restructuring Case Study: Given it's for the RX (Restructuring) team, there's a strong possibility of a restructuring-focused case study. This could involve analyzing a distressed company's financials, identifying operational or financial restructuring opportunities, and proposing actionable solutions. Familiarize yourself with common restructuring strategies, distressed M&A, and bankruptcy processes.
Analytical Skills: The test might also assess your ability to analyze and interpret financial data quickly. This could include identifying key financial metrics, performing ratio analysis, and making inferences based on limited information.
Attention to Detail: Given the meticulous nature of restructuring work, demonstrating a keen eye for detail will be crucial. Ensure your calculations are accurate and your assumptions are logical and well-justified.
Preparation Tips: - Review financial modeling principles, especially around 3-statement models and LBO models, as they can be quite relevant in restructuring scenarios. - Brush up on your understanding of the restructuring process, including operational and financial restructuring, distressed M&A, and bankruptcy procedures. - Practice case studies related to restructuring to get comfortable with the thought process and analysis required. - Pay attention to time management during the test to ensure you can complete all sections to the best of your ability.
Remember, while technical skills are crucial, your ability to think critically and present coherent, actionable insights will also be under scrutiny. Good luck!
Sources: 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Lazard first round - Consisted of three parts, Genuine Question: why are Pjt and HL RX teams considered better than MoCo RX?, HL RX Superday, The Hours
Is this for HK or SG?
For SG, competition is much higher. Summer interns that are coming in are expected to build a full bankruptcy model with toggles on each tranche of debt for paying and accruing interest, also provisions for debt-for-debt swap and debt-for-equity swap
What resources are there to learn this?
HK, but still thanks a lot
I interviewed with another RX office and also had a test- I think mine was 45 minutes, though.
They gave a 2023 3-statement and like 5 bullets on what to change, then you build the next year. If you take a semester of accounting, it’s not bad. Only sucks when the balance sheet doesn’t balance and you have to recheck your work, only to realize that you miscopied one digit lol. If you take a semester of financial accounting or know 3-statement modeling it’s not bad.
It also gave 5ish scenarios and asked which option would increase cash or net income in an inflationary environment- stuff like FIFO/LIFO, capitalize/recognize expenses, etc. Also pretty basic accounting.
I think the last part was a cap table and they asked for some ratios, your thoughts on the company, and what you could do to fix it.
Granted this was the US, so no guarantee it’s the same.
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