Incoming RX analyst

This is a study guide outline I made while prepping for RX

Technical Qs - Interview  

1. General M&A Technicals
   1. Accounting
   2. EV/EQV intuition
   3. Valuation
   4. LBOs
2. In court vs Out-of-Court Chapter 11 Bankruptcy
   1. Chapter 11 process
   2. DIP financing
   3. Cramdown
   4. RSA
   5. Bankruptcy proceedings
3. Bond Math
   1. Price ↔ yield
   2. Yield to maturity
   3. Accrued interest
   4. Premium / discount bonds
4. Debt, Equity, Capital Solutions 
   1. interest Rate Concepts
      1. Components - Formula, Benchmark Rate, Spread, etc
      2. Fixed V. Floating, Pros & Cons
      3. Interest Expense - Cash Pay vs PIK 
   2. Debt Concepts & Vocabulary
      1. Tenor, Amortization, Prepayment, call protection, Investor Types, Bonds V. Loans 
   3. Capital Structure Concepts 
      1. Seniority, Cap Structure/Repayment Priority, Covenants, Secured v. Unsecured
   4. Debt Instruments - In-depth outline
   5. List of all debt instruments
   6. List of all Equity Instruments
   7. Cap solutions - Scenario Classifications - Vanilla, Stressed, Distressed, Bankruptcy 
   8. Cap solutions - Why is the company raising capital? - Across all 4 scenarios 
   9. Cap solutions - Debt & Equity Transactions - Across all 4 scenarios 
5. Subordination
   1. Seniority
   2. Recovery waterfalls
   3. Secured vs. unsecured
   4. Intercreditor concepts
   5. Fulcrum security
6. RX Case Study
   1. Recovery analysis
   2. Distressed valuation
   3. Identifying the fulcrum
   4. Creditor recoveries
   5. LME scenarios

Preparation Framework

1. For General M&A technicals, use BIWS 400 
2. Understand Debt. Use..
   1. BIWS Debt Primer - overview of typical debt instruments and their general place in capital structures 
3. Understand the theory behind financial restructuring
   1. Moyer - Ch 1-9, Ch 12
4. Read RX cases - Modern way of restructuring practitioners aim to extend the lifetime of a distressed company… 
   1. J.CREW, Serta, At Home
   2. Bonus: Caesar’s Palace 
5. Practice Questions - restructuringinterciews.com