what type of modeling is done at a corp dev position for a FAANG?
What should I practice? I know its a dumb question but the posting just says “Requires advanced financial modeling skills”
Is this 3 statement, DCF, Accr/dill, etc I just am not sure. I have an interview coming up and want to be well versed.
Hey there, no question is a dumb question! In a Corp Dev role, you'll likely be doing a variety of modeling. Based on the most helpful WSO content, here's a rundown of the types of modeling you might encounter:
Operational Modeling: This involves creating a 3-statement model that details the business operations. It can get down to the nitty-gritty details like how many hours/people it takes to do certain tasks, and the cost breakdown for a product.
Valuation Modeling: This typically involves DCF (Discounted Cash Flow) and LBO (Leveraged Buyout) modeling for M&A transactions.
Venture Capital Modeling: This involves creating DCF and cap tables.
Lease Models: This involves creating models to compare lease vs buy options.
Liquidity Models: These are used for managing debt and investments.
Manufacturing Decision Making Models: These are cost models used to decide between producing different products.
Automation Decision Making Models: These are used to decide between automating a process or keeping it manual.
So, to prepare for your interview, I'd recommend brushing up on all these types of modeling. You can find resources on the WSO Courses and WSO Academy, including the Networking Guide, Investment Banking Prep, and more. Good luck with your interview! You're going to crush it!
Sources: Q&A: Corp Dev > Strategic Finance > VC, Corporate Development: My Experiences and Background, What is it like to start in CorpDev right from undergrad?, Q&A: Corp Dev (F500) with a non-traditional background and b school
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