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I'm curious how many of you (if any) have been asked in depth questions or questions in general about merger models, how to walk through them, etc when interviewing for SA positions. I'd expect this more from places like Greenhill, Evercore, PWP that are very M&A focused but don't even know what sort of expectations they have. Thanks for your help (I'm also asking this for a relevant reason beyond just being curious).

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Comments (10)

  • couchy's picture

    how to calculate beta in a merger context --- how to use DCF vs NPV in a merger to calculate target co's value...

  • couchy's picture

    FYI I was asked that during an interview with one of the elite boutiques..

  • In reply to A Fellow Linguist
    couchy's picture

    A Fellow Linguist wrote:
    couchy wrote:
    how to calculate beta in a merger context --- how to use DCF vs NPV in a merger to calculate target co's value...

    Damn, I've went through the paid BIWS investment banking guide, but have no idea how to answer these questions. Any hints?

    I have a feeling that's why they specifically asked that lol...

  • Billy Ray Valentine's picture

    I think it would probably be rare to get these sort of questions unless you were at a place which is extremely M&A heavy and you had a finance background and maybe you said something about it. That said, never hurts to know it and stand out. The modeling classes WSO offers will probably help you learn that stuff.

  • BepBep12's picture

    I've been asked about Acc/Dil model, but it was high level. Some unsolicited advice: understand how an operating model works [3 Financial Statements], once you're familiar with it LBOs, Acc/Dil or DCF will come intuitively, they're all pretty much the same thing just w/ different schedules / manipulations based on the analysis.

    'Before you enter... be willing to pay the price'

  • akwade's picture

    Had to consolidate balance sheets using the 3 methods. Then do an LBO on paper.

    SA interview for a pretty good boutique.

  • In reply to couchy
    Art of War's picture

    couchy wrote:
    how to calculate beta in a merger context --- how to use DCF vs NPV in a merger to calculate target co's value...

    So what was the correct answer for the DCF vs NPV question?

  • In reply to Art of War
    ASMB's picture

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  • swish41mavs's picture

    "Try and fail, but don't fail to try"