Summer Analyst Interview - Investment Banking
- Walk me through your resume
- He mentioned that coming out-of-state I'm put at disadvantage compared to other candidates. Local candidates are preferred. I also didn't have a clear reason why I wanted to work at that location.
Fit questions:
- Why investment banking?
- Why should we hire you?
- Why this location?
- What makes you a perfect candidate for IB?
Technical questions:
- How does $100 increase in inventory affect 3 financial statements?
- If you had to choose one financial statement to evaluate a company, what would it be and why?
- What valuations methods do you know of?
- Which company would be a good candidate for a leverage buyout analysis?
- Walk me though LBO
Characteristics of a good LBO target include steady cash flows, limited business risk, limited need for ongoing investment (e.g. capital expenditures or working capital), strong management, opportunity for cost reductions and a high asset base (to use as debt collateral). The most important trait is steady cash flows, as the company must have the ability to generate the cash flow required to support relatively high interest expense.
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