Houlihan Lokey FT Analyst superdays (Healthcare/Industrials M&A groups)

I have a friend who worked at HL Dallas doing healthcare. Almost the entire healthcare analyst class quit within the year, including the analysts in the chicago office, because Healthcare is a sweatshop. He averaged over 100/week for consecutive weeks and didn't have a day off for 3 months straight. They also required him to follow over 10+ healthcare companies on top of his work.

In terms of recruitment, he took an accounting test that pulled most of the information from intermediate accounting. Not sure about Super Day and such.

I hope this helps.

Thanks for advice @QuackQuack ! I really appreciate your input. +1 SB

MPLS HL is also rough on hours, both M&A and Rx. Still think that office is the best, w/exception of L.A., though even that is debatable. M&A closed a few nice deals recently, including a few w/large PEs (i.e. NEP).

Know a few associates that were burned out and jumped ship. Analysts get recruited to NEP and other MM PE groups and jump at those offers b/c of the conditions. Expect to work around 100 hr weeks for either, though Rx may be a bit lighter now.

Good news is for MPLS, unless you are client-facing or have a client meeting, you can wear whatever you want. Seen HL guys roll up in flip flops and jeans frequently at some informal HH events.

Standard interviews, walk through 3-statement model, DCF & assumptions, etc.

Thanks @peinvestor2012 , as always your advice is golden! +1SB

Anyone else interviewed with HL or has experience with them?

BUMP

Anyone else willing to share their experience with HL?

BUMP Anyone?

Beny 23, I have a friend who took HL HC test in Dallas. Here it is:

ANALYST CANDIDATE EXERCISE Total Time Allowed: 3 Hours

Exercise Instructions

Please review the directions and let us know if you have any questions or clarifications before you get started.

 Please construct a leveraged buyout (LBO) model for Kindred Healthcare (NYSE: KND) on one Excel worksheet (i.e., not a multi-sheet model) that includes the following:

1. Income statement, cash flow statement and balance sheet.
2. Transaction summary (with sources & uses, IRR calculations, and summary financial and credit statistics).
3. Ability to run various operating scenarios (ability to vary revenue growth, EBITDA margins, etc.).
4. Any other analyses and schedules you consider essential in the time you have.

 Use June 30, 2013 as the transaction close date. Use your experience and judgement on an appropriate capital structure and level of equity you may need to accomplish a transaction.

 Your model should include a Revolving Credit Facility (“RCF”) and Cash Sweep such that 100% of excess cash is used to pay down debt and the RCF can be used to fund the day to day operations of the business.

 Use any publicly available information for this exercise.

 Please note that this is a test of modelling skills, not a test of industry knowledge. You are not being judged on industry views and we do not expect you to defend your assumptions. You are being judged on your proficiency in Microsoft Excel and your ability to construct a three-statement LBO model that is flexible enough to allow for the use of different operating and financing/transaction assumptions.

Thanks for sharing guys RTR and confusedFT. Did you guys end up working for HL?

what other shops have written tests? not familiar with this type of interview process; is it specific to HL?

what other shops have written tests? not familiar with this type of interview process; is it specific to HL?

@Beny23

I recruited back in 2011 in the Chicago for their Industrials practice (didn't end up landing the offer), but I'll chime in a little and hopefully something helps despite my experience being a bit dated.

1. I had 3 back-to-back interviews w/ a 1-hour break for lunch followed by another 3 back-to-back interviews. My interviews consisted largely of 2 on 1s w/ the junior folks (Analysts & Associates) and 1 on 1s w/ VPs and Directors. The overall 'tone' or feeling that I got from the other side of the table was fairly relaxed although slightly 'stiff'. I'm not sure how to describe other than the guys/gals interviewing were approachable and friendly, but I didn't feel comfortable bullshitting w/ them about about what I did last Thursday night, nor did I think they were interested in 'that side' of me. Overall though I was never at any point was made to feel uncomfortable or put under pressure w/ a 'Good Cop, Bad Cop' routine or something silly like that.

2. Houlihan is known for some of the more difficult technical interviews, but at the end of the day realize that none of the tecnicals that they will ask are actually difficult. Rather, they'll take a concept from the Vault or WSO guides and really drill on applying it. I was given 'scenarios' to work through (nothing complex or quantitative), but really emphasized a solid understanding of the basic material over wrote memorization. In order to prepare for this I would make sure that you can recite the textbook answer to something like 'Depreciation Expense +$10, how does it affect the 3-Financial Statements', but also then be able to apply it w/ different non-cash expenses, or activities on the BS such as write-downs or impairments. Though you may not know exactly the line items or nomenclature knowing the general effects I think can go a long way in demonstrating proficiency.

3. The written test for me was exactly the same as mentioned above. I would bring a financial calculator that you are familiar w/ though in order to take the test. I was given I think a 10BII+ or something, but wasn't familiar w/ it since I hadn't used anything other than the old-school HP12-C so I wasted some time figuring out the differences. Not a huge issue, but nevertheless a variable that you can control if you're prepared.

4. Never had to do a modeling test.

Overall its a basic IBD interview, nothing unusual unless you count the written exam. Good luck.