What Do I need to know for SA Restructuring Interviews?

First year at west coast school interested in restructuring next year. I know the process gets more and more competitive every cycle, so I want to ask the community what level of technical understanding is required to land a RX summer analyst role.

I am somewhat familiar with debt capital as I am interning right now in a public finance group, but this is only concerned with bonds, not too familiar with other types of debt.

I've heard of Moyer's distressed debt, and know that a lot of people consider this the gold standard, but have also heard talk that this isn't enough anymore. As restructuring is one of the more technical heavy groups at a bank, will technical understanding requirements be much higher than other groups?

What other resources can I use to prepare for interviews/get a good understanding of the restructuring process and debt capital?

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Here's what I used. Got offers at top rx groups so this is definitely good enough for SA interviews.

1 - Moyer: don't just read it once, actually know it cold

2 - Houlihan lokey case study

3 - bond math/YTM formula

4 - Know how to calculate recoveries -> usually interviews will also throw different scenarios at you like structural subordination or undersecured debt so get comfortable with this

5 - Be able to talk about an RX deal and explain why the different creditor groups pursued certain strategies 

6 - RX-specific accounting like what happens to the three statements when a company buys back its own debt, writes down the value of its assets

I also asked some upperclassmen who worked in restructuring for practice questions. Also, there's a website called restructuringinterviews.com that has a guide for rx interviews that's pretty helpful if you can get your hands on it although its not required by any means. Finally, you'll also get some basic technicals on valuation, accounting etc but you probably already know that.

This might sound like a lot but it isn't too bad and if you can get through this, there won't be any technical questions that you don't get. Most of the top rx specific internships (HL/EVR/PJT) will be pretty heavy on the technical side with the majority of technical questions being restructuring-related. Good luck!

 
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I'm sorry but you're wrong. Everyone who gets a top RX SA knows Moyer cold nowadays. OP gave a perfect overview and I will add that there are more candidates that check all those boxes than spots available so you can never be safe 

 

That's fair but I think if you have ~1 year to prep, this should only take around an hour a week if you start in September and given how restructuring first rounds are 90% technical, you'll have an (almost) guaranteed shot at a superday by doing this. Also I found that knowing all of this gave me a certain level of confidence going into interviews that I didn't always have for other groups. 

 

restructuringinterviews dot com is the gold standard and helped me land pjt/hl/laz SA

 

awesome breakdown - would add some specifics on accounting- they definitely love asking about PIK debt, DTA's etc, and was also faced with a number of EBITDA questions (shortfalls, normalizations, OBS accounting etc). Would also think that beyond nailing techs, a really good why ib/rx story is critical given how selective these spots are. With the selectivity, a soph internship seems crucial as well (large uphill battle without), many seem to summer at buyside places like matrix, tiger, etc.

A good pitch is nice to have - got asked about it and probably good to keep in mind RX folks are probably more risk averse/value/cash flow oriented investors than say, a TMT group. cheers

 

I would start at least before Christmas if you want to take your time to understand it before recruiting kicks off 

 

there is also a instagram page called restructuring__ that does nice/advanced content 

 

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