Guys - does anyone know what I should be expecting? I heard the modelling test (pre-interviews) should be a 'simple' 3-statment model, but any more details on that? Is it in Excel? Is it online? What does it consist of?
Thanks a lot!
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Hey there! Based on the most helpful WSO content, the modeling test for Point72 is likely to be a 3-statement model. This typically involves creating an income statement, balance sheet, and cash flow statement. It's a common type of financial model used in investment banking and is a great way to showcase your understanding of how a company's financials are interconnected.
As for the format, it's usually done in Excel. This allows you to demonstrate your proficiency with the software, which is a crucial skill in the finance industry. The test might be conducted online, especially given the current trend towards remote interviewing.
The test will likely consist of you being given some financial information about a company and then being asked to construct a 3-statement model. This will involve making projections based on the information provided and using these to forecast the company's future financial performance.
Remember, the key to acing this test is practice. The WSO offers a Modeling & Valuation Bootcamp that could be a great resource for you. It covers Excel, M&A, 3-statement, DCF, Comps, LBO and more.
Good luck, and remember, every banana is a step closer to the top of the tree!
Sources: Acquisitions modeling test, Evercore lateral interview: what to expect in terms of questions and modeling test?, Preliminary Interview at Point72, Point72 Market Intelligence Research Analyst Interview Process
Can’t speak about that firm specifically but a very standard format is:
They email you a prompt with a set of questions / directions that you will address in your excel model (99,9% chance this is an excel exercise done via email)
They provide financial data either in pdfs or in excel
They ask you to complete a model and send it back in x amount of time - could be 1 hour, could be 1 week. Pre interview Modeling test, I’d expect probably anywhere from 2-3 hrs to a 24 hr turnaround. Honor system, don’t ask your friends to help you.
They might send a partially completed excel that you then finish (very common) but you should be prepared to start from a blank excel sheet.
Good luck and play well!!
I sat the modelling examination the other week.
It was a 45 minute test that had a simple three way statement and you were required to make some calculations and push the model N+3. Fairly straightforward. Calculations were things like ROE, ROA, CCF etc.
Only issue is that under the downloaded program in which you sit the test, you cannot CTRL-C/CTRL-V as the application doesn't allow the copy function. It's a lot more manual and time consuming but it was still manageable under the time allocation.
Good luck!
Super helpful, thank you. Have you heard back since then? Do you think it’s a huge issue if my balance sheet wasn’t closing perfectly? I pushed through most of the edits, and I think more or less all formulas were fine, perhaps I did a mistake in one of the line items, but nothing major, and I hope that’s understandable given time pressure. Thoughts?
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