Advice: Bankers asking technicals during coffee chats..
Hey all is it just with me and my friends but why are bankers now adding in technical screenings in like coffee chat ish situations before formal interviews.. Anyone know how to best navigate these scenarios?
Lol thats such a dik move but many of us are diks so expected lol... sometimes people drop technicals to help you and not to formally judge you but seems like in your case it isnt
Try to get the answer right
Yes it is a thing now for some EBs.
My associate was proudly telling me he asked an undergrad about ifrs 16 adjustments during a coffee chat…
Hey man kind of off topic but my friend in psychology training has been making fun of me and asking if I'm getting ready to work at McDonalds even since the OpenAI thing and is insisting that his work is too intellectual to be automated. So anyway I've been playing around with something in ChatGPT and here's what it came up with for your little issue, hope it helps:
One element in which IB recruiting resources are failing prospects is in preparing them for the neurotic etiquette of the junior banker. The average college student does not inhabit sufficient mental insecurity or intrepid delusion to have predictive insight into the behavior of a 20-something who has allocated their waking life to formatting micro-adjustments and niche accounting, and so it will come as quite a shock to them the level of sincerity which is placed on seemingly innocuous information at inopportune moments.
An improved strategy for navigating the psychiatric turpitude endemic to contemporary adolescent "high-finance" is simply to assume as though everyone you speak to is trying to be Patrick Bateman, until proven or given signs of life otherwise. Strategies such as these can be a useful when existing mental modal structures fail to capture conduct phenomenology not encountered in normative daily life, such as the insistence of the junior banker that the lease accounting question they just asked you will be indicative of professional performance.
Mind asking your friend why this is the case? I've seen the case for all sorts of individuals ranging from nepo, non-target hardo, diversity, etc. Why cannnot they chill the fuckout?
TLDR: Most junior bankers are mildly narcissistic giga-autists
what kind of technicals are they asking anyways?
I've never seen this before...Can you give me an example of how this happens, and what the context is leading up to the technical question?
If you've just introduced yourself / background, and he goes, "Ok great, now let's shift gears into some technical questions: How does D&A flow through the 3 statements?", then I agree with every one else...It's a dick move and you may not want to be working with someone like that anyways...
That said, I think it can be fair game if the technical question is a follow-up to something you said, for example, follow-up questions / details about a deal that you were discussing to make sure you're not making stuff up (or the banker was just interested for some reason).
It could also be fair to ask if you say something incorrect / red-flaggish....The following is an actual comment I got from a candidate during a coffee chat, "I worked on a live deal during my summer analyst time and got to model out free cash flows and do a DCF also. This was a really interesting company with great free cash flow generation because D&A was very high!"
I think he was thinking about the textbook definition of UFCF = EBIT*(1-Tax Rate) + D&A - CAPEX - Increase in NWC, so because he saw high D&A, he interpreted that as the driver. In this instance, I can understand asking a technical question like, "Can you elaborate? Why does high D&A drive high FCF? What about the relationship to CAPEX?"
I did not ask that question for the record...just moved on, but I can understand why someone would ask that.
Agree don’t have enough background and generally not a nice move. With that said sense is some of it due to bankers sometimes feeling their oats / asserting themselves in not so great ways. I also think a function though of trying to manage sheer volume of inbounds coming in and the thoughtfulness / thoughtlessness of some of them. I have gotten inbounds from students who should know we have a core campus recruiting team and a bunch of alum they can reach out to - telling me no connectivity, or asking if Friday 7pm works for me as they are busy with classes (their time more important then mine as they ask for a favor), or as someone mentioned above they go and highlight their experience (or lack of) and spend time highlighting what they don’t know which leads to obvious questions, or they are too casual / intimate or have done zero background work. You have 2-3 of these go south and I think some can get jaded.
With that said do believe that there should be care and a lot of open-mindedness on the part of bankers engaging in coffee chats but also think - and a general statement that doesn’t apply to all - there needs to be a lot of work done with those asking to make sure a mutually beneficial use of time that is thought out and it’s great practice for starting / growing a network. Also always guide those asking me to think about this tactically. Spending 10m on my career or my view on interest rates (my guess is as good as anyone else’s) may not be best use of time if you are trying to tactically navigate how the resume selects / interview process / works at a particular bank.
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