London SA Technicals in Interviews
Hi guys,
Going through the cycle now for 2025. I was wondering what type of technicals are asked. I often hear that technicals are not to the level of that in NYC or elsewhere, however what level are they? Apart from the standard walk me through DCF and what are different types of valuation methods, what else do you get and what sort of understanding do you need? What is the best way to study for these?
Also interested in hearing how it differs. BB is mostly fit but some technicals whereas EB is technical heavy apparently, but how is it in MM (Gleacher/Torch)?
Thanks!
Of course I can't speak for all banks, but if it helps, at my bank the interviews tend to be about fit, but bankers themselves may throw in some technicals (which tend to be on the lighter side but literally it's up to the banker so really could be anything, but typically it's walking through a DCF, etc.). In addition, be prepared for ACs / CSs / etc. At my bank, for SA, in our assessment centers and case studies we can ask:
1) General banking awareness (e.g. (A) topics you might discuss in a meeting with a client where the focus is something like a business they want to buy, an asset they have they might sell, etc., (B) advantages of selling to a strategic versus a sponsor, etc., (C) various exit option for an asset-owner, (D) why might you choose to do an IPO or not, (E) which combination of metrics do we use for valuation (e.g. does EV / Net Income make sense?), etc.)
2) More hard technicals (e.g. most relevant comps, most relevant precedent transactions, basic accretion / diluton (if not a calculation then at least a question on directionally what will happen), some calculations of things like EV or Net Debt or FCF or such)
Crazy how technicals aren't valued over 'fit' bullshit.
Makes sense why so many diversity hires and women have gotten in over the past few years.
Not really, no amount of technical learning by yourself to prep for interview will prepare you for even 1/100th of what you will learn in your 1st month on the job. I get why certain EBs value fit over technical skill. If I'm gonna work with someone 70 hours a week I'd much rather know if I'll be able to tolerate them than if they know what EBITDA is, that's the easy bit.
Hi, thanks a lot for your message. Would it bother you saying what type of bank you are at? (BB/MM)
Also, weird question, but what do you believe is the best way of learning these?
Oh I'm sorry for not clarifying, so this is more BB question / interview types. That said larger MMs with structured HR teams probably (this is speculative as I don't work in one) are very similar. I'd guess the LMMs or more niche MMs may be more idiosyncratic.
As for learning, it's a very natural question and not weird at all. I'm probably not best-placed to answer (I interviewed years and years ago). When I was at university there were societies that did teach-ins for this kind of thing. If it were me, I'd Google it or search this forum, and there should be a few starting points (beyond asking any friends in the industry).
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Can confirm technicals in London are defo a thing
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