Currently an analyst 2 in IB coverage. Passed the wonderlic / modeling tests and had my first round with a BD person last week. Was super high level intro stuff, then a valuation exercise (i.e. how would you value a coffee shop)
Felt I answered this question quite well, basically made a bunch of assumptions to get down to FCF and ran a mini DCF to come up with a valuation
Got the call today that they aren't moving forward but feedback was 'very positive'
What do I make of this? Do you think it's a product of just not having the right profile on paper? Is there a better way to answer their little valuation exercise?
Feeling a bit discouraged as I progress with other funds as obviously Citadel is one I wanted. How do I not take this personally?
I worked at Citadel and told my final interviewer I had no interest in answering his probability questions. I still got the job. It's not one size fits all.
They interviewed started asking you prob and you just said stfu?
pussy_galore was this for commodities?
It's just classic playing hard to get lol
Don't worry too much, Citadel is used to reject 95% of the people they interview.
And yes, BD interviews at Citadel tends to be harder than the average screening calls because some BD persons are former investment professional.
By the way, to value a coffee shop you could also just use a multiple of sales/EBITDA.
Finally, I don't think they are giving positive feedback to everybody. You just likely lack of experience and should reapply in 1 year (the delay between processes at this fund).
Thanks, appreciate the reply. The question was specifically 'a coffee shop with 1 employee and 1 location' - I figured multiples wouldn't quite cut it given lack of relative data points. Would you still answer with a multiple? Or do you think they're actually looking for a mini DCF
Your DCF approach is doable (a bit risky because you could be challenged on a lot of assumptions)
The multiple method is still possible with 1 location and 1 employee. I guess your interviewer is expecting you to make assumptions.
In fact, being to give a realistic sales multiple for a coffee shop could really constitute a strong point for a candidate.
about 4-5 years ago, there was this one interviewer at citadel who had grilled me like crazy and I could've sworn he hated me until he asked for a stock pitch and I pitched anheuser-busch. We immediately started talking about beers and which bar had the best stella on tap. Got the job and treated him to a nice frothy one at hellcat annie's on 45th and 10th ave.
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They’ll email or ignore you if dinged. If you get an offer they will give you a call.
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dude, figure it out lol. There's no secret sauce to working at a HF; the point is to see how you think
You'll find out soon enough if you have an offer or not. Getting this anxious about a fund you'll likely last 1-2 years in isn't a good sign
It’s like first date man.
Sometimes the chick thinks you’re hot and you answer all her questions right, but she just isn’t in the mood that day or just isn’t feeling you.
There’s never going to be a response that will make your frustration dissipate.
How hard is it to move on in these interviews. I'm guessing they obviously have an assortment of talented people to choose from. Is it just luck at that point?
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