Hi guys, just received an interview for portfolio valuations (at an investment bank advisor bank)
Any tips/things I need to work on? Currently a financial analyst but I don’t deal with the financial statements in my job. It’s similar analysis but for different metrics.
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To prepare for a portfolio valuations interview, here’s what you should focus on based on the most helpful WSO content:
Brush Up on Financial Statements
Even if your current role doesn’t involve financial statements, understanding the Income Statement, Balance Sheet, and Cash Flow Statement is critical. These are foundational for valuation work. The Income Statement shows revenues and expenses, the Balance Sheet outlines assets, liabilities, and equity, and the Cash Flow Statement tracks cash inflows and outflows. Missteps here can be a dealbreaker.
Master Valuation Techniques
Be ready to discuss and apply valuation methods such as:
These are core to portfolio valuations, and you should be comfortable explaining the logic behind each method and when to use them.
Understand Accounting Principles
Since portfolio valuations often involve analyzing financial data, you’ll need a solid grasp of accounting principles, especially how the three financial statements interact. This is crucial for modeling and valuation exercises.
Practice Mental Math and Brainteasers
Interviews for roles like this often include brainteasers or mental math to test your problem-solving skills under pressure. For example, you might be asked market-sizing questions or logical problems. Practicing these can help you stay sharp during the interview.
Prepare for Behavioral Questions
Use the SOAR framework (Situation, Obstacle, Action, Result) to structure your answers to behavioral questions. Prepare 6-8 stories that highlight your analytical skills, teamwork, and ability to handle challenges.
Know the Industry and Role
Research the specific bank and its portfolio valuation practices. Understand the types of assets they value and any unique methodologies they might use. Tailor your "Why this role?" and "Why this firm?" answers to reflect this knowledge.
Leverage Financial Modeling Resources
If you’re less experienced with financial modeling, consider practicing with templates or guides. WSO offers resources like 27 financial modeling templates and lessons on DCF, M&A, and more, which can be invaluable for preparation.
Network and Seek Insights
If possible, connect with someone in a similar role or at the same firm to gain insights into the interview process and expectations. Networking can also help you understand the firm’s culture and tailor your responses.
By focusing on these areas, you’ll be well-prepared to tackle both technical and behavioral aspects of the interview. Good luck!
Sources: An ex-Goldman Sachs insider’s 10 tips on how to sail through investment banking interviews, Interviewing for a SA or Analyst position? Here's what I'd want to hear as a VP., SA Interview Prep Techniques, An ex-Goldman Sachs insider’s 10 tips on how to sail through investment banking interviews, Preparing for an IB internship
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