Lateraling as AN1/AN2

Based on the most helpful WSO content, here’s what you should expect and prepare for when lateraling as an AN1/AN2, especially when transitioning from a product group to a coverage group:

1. Fit and Culture

• Fit is indeed a critical aspect of lateral interviews. Banks want to ensure you align with their team culture and can work well with the group.
• Be prepared to discuss your motivations for the move (e.g., why you’re transitioning from product to coverage, why that specific group, and why that bank).
• Know your resume and story cold. Have a cohesive and polished 90-second walkthrough of your background, focusing on positive transitions and motivations.

2. Deal Experience

• Your deal experience will be heavily scrutinized. Be ready to discuss your deals in detail, including:
  • Company revenue, EBITDA, selling price, and rationale for the deal.
  • Deal complexities, buyer search process, and your specific role.
  • Challenges faced and how you contributed to overcoming them.
• Know your deals like the back of your hand—this is often more important than technical drills.

3. Technical Questions

• Expect technical questions to test your understanding of valuation, accounting, and financial modeling.
• Be prepared for questions on topics like accretion/dilution, DCF, LBOs, and comparable company analysis.
• If you’re moving from a product group, they may probe your understanding of broader coverage-specific nuances.

4. Modeling Test

• A modeling test is common in lateral interviews. This could range from a 1-hour accretion/dilution test to a more comprehensive 2-3 hour modeling exercise.
• After the test, there’s often a debrief session where you’ll walk through your model and explain your assumptions. Be ready to defend your logic and approach.

5. Behavioral Questions

• Behavioral questions will focus on teamwork, leadership, and problem-solving. Examples include:
  • "Tell me about a time you faced a challenge on a deal and how you handled it."
  • "How do you prioritize tasks under tight deadlines?"
• Practice answering these questions concisely and with specific examples.

6. Networking and Group-Specific Research

• Research the group you’re interviewing with. Understand their recent deals, team structure, and culture.
• If possible, network with current or former members of the group to gain insights into what they value in candidates.

7. General Tips

• Be professional and polished throughout the process. Avoid any unprofessional behavior (e.g., inappropriate comments or lack of preparation).
• Follow up with thank-you emails after interviews to leave a positive impression.

By focusing on these areas, you’ll be well-prepared to navigate the lateral interview process successfully. Good luck!

Sources: Lateraling Guide for Investment Banking, Consulting Recruiting 2023, Lateraling Guide for Investment Banking, Don't get OfficeHours.