WSO,
I have upcoming interview with a top restructuring group. While I am very interested in restructuring and know some of the basics, I am wondering if anyone here can provide any details on what restructuring interviews are like and what I should expect, or if there is anything in general that I should know and be familiar with versus a traditional M&A or industry group interview.
Please feel free to PM me if you think that would be a more efficient way of communicating and thanks in advance.
When I was going through FT recruitment... I had a few restructuring interviews and most were similar if not the same as my other investment banking interviews, however...they were a lot more technical. I also had a very detailed case study interview with one VP which was actually super interesting, but didn't work out so well as I didn't receive an offer from that group.
Go to Houlihan Lokey's website and look in their restructuring area. There is a great case study that is pretty easy to read and really breaks down restructuring, how it is done, and the different skill sets needed. That should help you prepare.
Search dude. So much good info here already.
Agree with Pike re the HLHZ RX guide. Also, while RX interviews can follow the same general pattern as industry group or M&A interviews, you might want to think about the following questions:
Why do you want to do Restructuring?
They won't expect you to have a great answer, but you want to be able to knowledgeably speak to what RX bankers do (advise distressed/troubled companies, i.e. businesses that are either going bankrupt, in bankruptcy, or exiting), and that you find this interesting. It also helps if you can discuss recent deals in the RX space - Eastman Kodak, American Airlines, and most recently Hostess.
Why do you want to do RX banking here?
This obviously depends on who you are interviewing with, but having a good understanding of the general type of RX work that this bank does is important. Do they typically do debtor-side work like Blackstone and Lazard, or do the generally represent the creditors, e.g. Houlihan? What recent mandates have they won?
Other Qs to think about:
Why would a company file for bankruptcy? What options are available to companies in distress? Refi, issue debt with PIK, asset sale, convert to equity.. Understanding the difference between Ch. 7 and Ch. 11 How does valuation change for a distressed company? Understanding the cap structure VERY well, especially how the different tranches of debt stack up and what each tranche should expect in bankruptcy
Awesome, thanks for all the info guys. This is for SA btw, will there be a big difference between the technicals expected for SA vs FT?
SA tends to be a bit more relaxed than FT, since the latter interview is for a two-year commitment. FT interviews can get very technical (not to say that yours won't), but I think less is expected in your answers for the summer job.
Just poke around the older WSO threads, read anything RX relaxed on M&I, and do the best you can.
I recently had a chat with an Associate within the Restructuring Group at HL. She gave some helpful pointers re interview prep -- if anyone is interested, please PM me. Also, I am hoping I can get some clarification re two questions/points related to restructuring:
Concept of value break and what price various debt tranches would trade at based on a company's valuation
Calculating debt capacity of a distressed company using EBITDA, cash and valuation multiple. This may be really dumb, but am I missing something here?
Thanks!
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Can you share some of those insights? I have a 1st round interview with the Restructuring Group coming up. Thanks in advance!
interview summer intern restructuring (Originally Posted: 02/24/2012)
I have a upcoming summer analyst interview with an associate in restructuring. I didn't apply directly for restructuring, rather just general SA. Since the interviewer is in restructuring I feel I should prepare as if I am being considered for the restructuring group which I'm unsure how to do. Suggestions on prep for this interview?
I was in this same situation, only it was for a FT position. First off - figure out what exactly they do in restructuring, haha. The first question I got was, "So what do you think we do all day in restructuring?" and I had absolutely no idea. Look up some recent deals. They'll probably ask you "why are you interested in restructuring" so be prepared to give a non-bullshitty-sounding answer. Good luck.
absolutely, thanks for the insight!
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