What kind of questions can I expect in a lateral interview

Based on the most helpful WSO content, here’s what you can expect in a lateral interview as an A1 lateral at the 6-12 month mark:

1. Technical Questions

Technical questions in lateral interviews can vary depending on the team and role, but here are some common areas to prepare for: - Accounting Concepts: - Deferred Tax Assets (DTA) / Deferred Tax Liabilities (DTL): What they are, how they arise, and how they are accounted for. - More involved accounting questions with multiple moving parts (e.g., depreciation, loans, sale of assets in a multi-step process). - Adjustments for unfunded pension liabilities or capitalizing leases. - Valuation and Modeling: - Accretion/Dilution: Questions involving multiple sources of funds and the impact of purchase price allocation (PPA) on accretion/dilution. - LBO Modeling: Expect questions on your LBO modeling experience, especially if the role involves private equity or leveraged finance. - Earnouts: How to value and structure earnouts. - Merger Accounting: - Full Purchase Price Allocation (PPA) walkthroughs. - SPA/APA negotiation and common reps and warranties. - Process Questions: - Questions about deal processes, such as structuring, negotiation, and execution.

If there’s a modeling test, it could involve building or analyzing an LBO model, accretion/dilution analysis, or other financial models.

2. Behavioral Questions

Behavioral questions are often more emphasized in lateral interviews, especially at the A1 level. Key areas include: - Deal Experience: - Be prepared to discuss your past deals in detail. Know the company’s revenue, EBITDA, selling price, reason for selling, and your specific contributions to the deal. - Expect questions about challenges you faced during deals and how you overcame them. - Motivations: - Why you’re making the switch so early in your career. - Why you’re interested in the specific team or bank you’re interviewing with. - Fit: - Banks want to assess if you’ll fit into their culture and team dynamics. Be yourself but remain professional and polished.

3. Coverage vs. Product Teams

If you’re switching to a different team (e.g., from a product team to a coverage team or vice versa), here’s what to consider: - Coverage Teams: These focus on specific industries (e.g., TMT, Healthcare). Expect questions about your understanding of the industry, key trends, and how you’ve tailored your deal experience to that sector. - Product Teams: These specialize in specific types of transactions (e.g., M&A, Leveraged Finance). Expect more technical questions related to the product, such as detailed M&A processes, LBO modeling, or structuring transactions.

Final Tips

• Be Ready for Variability: Some interviews may be highly technical, while others may focus more on behavioral aspects or fit. Superdays, in particular, often emphasize fit over technicals.
• Know Your Deals Cold: This is critical. Be prepared to discuss every detail of your past deals, as this is often the most important aspect of lateral interviews.
• Stay Professional: Even if the process feels informal, maintain a polished and buttoned-up demeanor.

Good luck with your lateral interviews!

Sources: Lateral Associate Interviews - What do bankers mean when they say they're "more technical"?, https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, Interviewing for a SA or Analyst position? Here's what I'd want to hear as a VP., Lateraling Guide for Investment Banking