Assosiate test at Rothschild - 90 min

Based on the most helpful WSO content, here's how you can prepare for a 90-minute modeling test for an Associate-level role at Rothschild, particularly in the E&P (Exploration & Production) space:

1. Understand the Sector:

   • Brush up on the fundamentals of the E&P industry. Focus on key metrics like production rates, reserves, commodity pricing, and operating costs.
   • Familiarize yourself with valuation methods specific to E&P, such as NAV (Net Asset Value) modeling, which is commonly used in this sector.

2. Practice Financial Modeling:

   • Given the time constraint of 90 minutes, the test is likely to focus on a single-asset underwriting or a straightforward financial model.
   • Practice building models from scratch under timed conditions. Focus on speed and accuracy.
   • Ensure you can handle tasks like projecting cash flows, calculating IRR, NPV, and sensitivity analysis.

3. Prepare for Common Scenarios:

   • Be ready to model scenarios like fluctuating commodity prices, changes in production levels, or varying operating costs.
   • Understand how to incorporate debt structures or financing into your model if required.

4. Review Case Studies:

   • Some modeling tests may include a brief case study or a set of assumptions. Practice interpreting and applying these inputs quickly.
   • Focus on presenting your outputs clearly, as you may need to defend your assumptions and results.

5. Expect Moderate Difficulty:

   • While the test is for an Associate role, the difficulty is likely to be moderate, focusing on your ability to think critically and execute efficiently under time pressure.
   • The test may not be as complex as a multi-asset portfolio model but will still require a solid understanding of E&P-specific modeling.

6. Key Tools and Skills:

   • Ensure proficiency in Excel shortcuts and formulas to save time.
   • Be prepared to explain your thought process and assumptions if there’s a follow-up discussion.

By focusing on these areas, you’ll be better equipped to handle the test efficiently and demonstrate your capabilities. Good luck!

Sources: Q&A: Barclays IB to MM Private Equity, Q&A: London REPE MF Associate, Preparing for Associate Role?, Q&A: London REPE MF Associate, Roadmap for IBD Coverage Associate to Career Banker