Technical question prep for FT recruiting

Technical questions for full-time IB recruiting are generally more challenging compared to SA recruiting. Based on the most helpful WSO content, here’s what you need to know:

1. Increased Emphasis on Technicals: Full-time recruiting often places a heavier focus on technical skills. Candidates have reported being tested on advanced topics like accretion/dilution, merger math, in-depth LBO questions (e.g., IRR/MOIC formulas), NOL problems, TEV multiples, and advanced accounting concepts like PP&E losses on sale. Some firms may even require you to build a model or solve "outside the box" questions.

2. Preparation Materials:

   • WSO Guides: The technical guide on WSO is highly recommended and widely used by candidates.
   • 400 M&I Questions: This guide is another excellent resource for mastering technical questions.
   • Rosenbaum & Pearl: For deeper understanding, especially in M&A and LevFin-heavy topics, this book is a go-to resource.
   • Practice Models: Familiarity with comps and accretion/dilution models is crucial. Even if you’re not given a modeling test, being fluent in these models will help you handle conceptual questions more naturally.

3. Firm-Specific Variations:

   • Elite Boutiques (EBs): Interviews at EBs can be highly technical, but some candidates have reported fit-based interviews with only a few conceptual technicals.
   • Bulge Bracket (BB) and Middle Market (MM): These firms may vary in their technical rigor, but you should still be well-prepared for valuation and accounting fundamentals.

4. Key Advice:

   • Over-prepare technically. The easiest way to get dinged is by not being technically sound.
   • Practice thinking through non-guide questions, as some firms may test your ability to apply concepts in unique scenarios.

By focusing on these resources and strategies, you’ll be well-equipped to tackle the technical challenges of full-time recruiting.

Sources: How to Navigate FT Recruiting: Learn from My Successes/Failures, Guide for Investment Banking Full-Time Recruiting, https://www.wallstreetoasis.com/forum/investment-banking/non-target-to-bb-ib-sa?customgpt=1, So tired of this recruiting shit