IBD Interview Modeling Test
I have a first round interview for a lateral analyst position tomorrow and most people out there believe I will be given a modeling/case study test based on the fact that I'm meeting with 5 individuals and they said to block off 3- 3.5 hours.
If anyone has had any first-hand experience with what to expect as far as the modeling/case study may be I'd greatly appreciate it. I have a pretty good amount of modeling experience, but usually need the help of a guide to build a full model and significantly more time than I would expect to have in an interview.
Thanks in advance.
i've seen / heard of some crazy shit out there. I'd be prepared to lay out a model pretty well and talk through valuation concepts in detail.
The smaller firms in NYC may ask you to create a full blown shell so i've heard.
Didn't end up having to do any modeling, although I got some pretty detailed LBO and DCF questions. Got a call 30 minutes after leaving the interview and am moving onto the next round. Believe it will be the last round. Any insight on how the questions could be different with the higher levels? I'm assuming I'll be meeting with the MD's who will be making the decision on whether to give me an offer. Should I expect more or less technical questions?
Thanks again.
less technical, more fit (i.e. do they like you)
I had an interview with MD (not lateral). They like asking fundamental questions, "Whats your take on product vs coverage divisions?", "What are some trends in XYZ industry?", "Where are we heading?"
IB Interview Modeling (Originally Posted: 07/23/2014)
Hello all,
I've got a modeling test coming up next week for a IB boutique that will be giving me a timed modeling test for one hour (at home). I wanted to know if anyone has ever been given modeling tests like these and would be willing to share them.
According to the contact that I have, the "modeling assessment will be a test of my understanding of financial statement forecasting as well as standard valuation methodologies." I've taken the BIWS course. Was wondering if anybody had any insight on what this assessment would entail. I'm not sure how to pull of several valuation methodologies within one hour but I'd appreciate any insight and suggestions.
*bump
Modelling needed for IB interviews? (Originally Posted: 08/12/2012)
Hi guys,
So one keeps hearing about modelling courses offered by WSO, M&I and the rest. Should I take them? I interview for BB IB internships starting January but from what I know, interviews are typical verbal Q&A sessions. Am I wrong? Will they give me written problems on DCF analysis and ask me to analyze merger models in Excel? Is that why modelling courses are offered online? Also what kind of modelling should I learn? LBO? Accretion/Dilution in merger models? LevFin stuff? Thank you!
The courses are good, but you won't go into half the detail for SA interviews.
They won't make you model during interviews, just standard technicals.
I assume if you're doing this at the post MBA level though , the IB/PE interviews are quite tough
I sure hope they don't ask you to spell "modeling" in your interview - apparent auto ding for you.
http://oxforddictionaries.com/definition/english/model
knowing financial modeling is not a prerequisite to pass interviews, but i think it gives you a huge leg up in two ways:
first, you are making yourself more marketable by demonstrating (rather than just saying) that you already know the basic skill necessary to succeed in investment banking. all else being equal, i rather pick the kid who knows basic modeling than somebody who has never really used excel before. in this kind of competitive environment, and when access to financial modeling courses is quite easy and (relatively) cheap, then why not?
second, you are more likely to actually understand why you do certain things in investment banking (ie, unlever and relever beta, when to use the right multiples, etc) and not just regurgitate some answers you picked up from a vault guide (which oftentimes are fundamentally unsound). again, in today's competitive environment, those who get offers are the ones who truly understand the fundamentals, so you can still keep your cool when they throw a curveball at you. again, i think financial modeling courses are a great way to understand those fundamentals.
in sum, modeling courses give you a pretty significant competitive advantage, or more aptly in your case, not doing a financial modeling course puts you at a substantial disadvantage vs those applicants who have done some modeling course.
and to the douchebag who made a spell check reference: both modeling and modelling are correct, the latter is in the british form.
cheers.
i see. i wonder if covering the material in business classes might obviate the need for any modelling...but point taken
there is no comparison in terms of ROI between a $200 modeling course online and god-knows-how-much-for "business classes" at your university. not to mention that the scope of most finance classes is often broader and less in depth than what you need to know for ib interviews. moreover, classes tend to be - not surprisingly - very academic, diluting some of the key concepts you really need to know, and miss out on the practical components that you will need to use in the day-to-day.
again, you don't necessarily need financial modeling courses to land an offer. but given how competitive the industry is right now, you are selling yourself short - big time.
some of these responses are different. I worked at a top group at GS/MS/JPM and if you knew your basic way around modeling DCF/LBO/M&A transactions (nothing more detailed than the mergers and inquisitions guide) you were completely fine. obviously you'll be asked variations of the questions in those guides so you should actually understand the answers but doing deep dives into the nitty gritty of some types of modeling will be of marginal help.
sure you can follow this whole be-all-that-you-can-be-esqe advice from some of the posts above mine but in the end if you know your basics really well you're solid for top BB/elite boutique interviews.
i guess this is a bit much, but i am going to get my questions out anyways...do we need to know stuff like how to price options, covertible bonds, swaps, futures and other kinds of derivatives? i mean i know what they are, but the theory behind them as explained in advanced vault guides is pretty complicated. i feel like the main topics i need to know are pricing bonds, equities and the 4 methods of corporate valuation. and of course the all important fit questions. anything else?
How much modeling would we be expected to know for full-time interviews coming from a summer analyst internship? Didn't do any real live-deal modeling at my SA this summer...
Modeling Test - (Entry Level) Analyst (Originally Posted: 02/25/2014)
Hello all,
Long time lurker here who is trying to make a change from non-IB background to an entry-level IB analyst position to a BB in London. I have a superday for a BB FIG team next week and was told that there will be a "simple" modeling test. Does anyone have any insight on what I should expect? Given I don't have a direct M&A background, I cant imagine that it will be overly in-depth. I am concerned that since its with a FIG team, it will not be a DCF model test but unsure what else it might cover.
Any insight/suggestions on what to focus studying on would be very welcome.
Thanks!
I think both BIWS and WSP have packages especially for FIG stuff, but they are pretty expensive. I do believe that BIWS has a free youtube video on using a DDM to value a bank, and there is a section in Benninga's Financial Modeling book (you can find this online) dedicated to bank valuation. Damodaran also probably touches on this in Investment valuation but I don't remember if this is the case for sure. This is what I would read over, if I were in your place, but you can never rule out a simple DCF/Comps/etc. test either. Best of luck!
Thanks for the tips! I do already have the BIWS package so will def read that over and go through the videos etc. Im just not sure where I should focus most of my efforts, since I am relatively new to do this.
http://pages.stern.nyu.edu/~adamodar/
Has a few DDM models, among other things you may find useful.
if you don't have a FIG background it may well be a DCF (it's standard, whereas a FIG DDM is more complex et people would not expect you to know how to do that without any relevant experience)
Thanks both for the input, and that website is indeed very helpful
Bulge bracket modeling exams? (Originally Posted: 02/02/2015)
Just wondering... do the bulge brackets generally give modeling exams in the IBD? Or is it mostly case studies?
And this would be for experienced hires.
Bump - I have one for MS this week
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