Rx Interview process with EB

Based on the most helpful WSO content, here’s what you need to know about preparing for Restructuring (Rx) interviews at elite boutiques (EBs):

1. Case Studies:

   • Expect case studies that focus on liquidity analysis, debt capacity, and creditor waterfall. These are common in Rx interviews as they test your ability to handle distressed scenarios and understand capital structures.
   • LBO modeling may also come up, but it’s less frequent compared to the above.
   • Some firms, like HL, are known for their Rx-specific case studies, which might include elements like valuation in distressed situations or understanding the implications of different restructuring strategies.

2. Technical Questions:

   • Be prepared for heavy technical grilling, especially around modeling, valuation, and credit/documentation.
   • Questions may include understanding levers to pull in de-leveraging a company, increasing EBITDA, or navigating complex capital structures.
   • You might also encounter tricky share price calculations or accretion/dilution logic questions.

3. Behavioral and Fit Questions:

   • EBs place significant emphasis on “Why Restructuring?” and “Why this firm?” Be ready to articulate your passion for Rx and how your experience aligns with the role.
   • Networking and demonstrating genuine interest in Rx are crucial, as these teams often look for candidates who are deeply committed to the space.

4. Recommended Resources:

   • Books: Distressed Debt Analysis by Stephen Moyer is highly recommended for understanding the fundamentals of restructuring.
   • Online Resources: The 11-part YouTube series “mini course in restructuring” is a great high-level review of key concepts.
   • Case Studies: HL’s case study materials are often cited as excellent preparation for Rx-specific questions.
   • Networking: Engage with professionals in the field to gain insights into the interview process and expectations.

5. Additional Tips:

   • Familiarize yourself with 363 sales, DIP financing, and stalking horse bids, as these are unique to Rx and may come up in interviews.
   • Understand the differences between Rx and M&A, particularly in terms of capital structure expertise and the types of deals handled.

By focusing on these areas and leveraging the recommended resources, you’ll be well-prepared to tackle the interview process for an Rx role at an EB. Good luck!

Sources: Restructuring Associate Interview, Why You Should Consider Restructuring – Common Misconceptions/Insight on RX Groups, Restructuring technicals and their difficulty, Advice on recruiting for Rx groups Post-MBA, https://www.wallstreetoasis.com/forum/investment-banking/what-is-the-best-book-to-get-ready-for-interviews-in-restructuring?customgpt=1