What next?
Patrick and others,
What are some tips you have for the newbies in the restructuring space in terms of getting the most out of our analyst experience? In the traditional healthy M&A to PE I know that modeling and transaction experience are key aspects, but what can we add to that?
I've been learning a lot about bankruptcy law, etc., but what else might a distressed PE or HF be looking for in a potential candidate above the usual?
Thanks
j.o.a.t.
Poll
The DOW will pass 10,000 for good in....
Q1 2009
4%
Q2 2009
3%
Q3 2009
27%
Q4 2009
20%
Q1 2010
15%
Q2 2010
10%
Q3 2010
4%
Q4 2010
1%
Some time in 2011
13%
2012+
4%
Total votes: 102
Modeling
As a new analyst, what can really set you apart is if you understand how to model all of the different types of debt and preferred securities you might come across. couple that with an understanding of how the voting rights work for secured vs. unsecured creditors in Ch. 11, being able to whip up a liquidity analysis (ie how much time before we run out of money) and you will be in good shape. very similar skills built in M&A, you will just get more exposure to legal nuances with distressed businesses and will be dealing with really messed up capital structures.
being a PPT guru also doesn't hurt. if you're on a team that is seeing good deal flow you should hopefully get some good modeling experience in your first year with an associate that is willing to help explain stuff you don't get right away.
in terms of distressed PE / HFs, most of these shops #1 want to make sure there is a good fit. If they are a bunch of tight-asses, then it is probably best that you're a tight-ass. If they like drinking in the office on Friday, it's probably best if you like to do the same. These funds are usually much smaller so they place a heavy emphasis on fit. Will you get technical questions? definitely...should you be fine once you've worked on a few restructurings? - yes.
Good luck,
Patrick