I am an ex-lawyer who has been trying to lateral into a junior associate investment banking position. Next week, I have my first interview with a couple of bankers at a BB. I don't know exactly what position I will be interviewing for, but I've expressed an interest in leveraged finance and I know I'm meeting with people in the division that includes the leveraged finance group. Here are my questions:
Generally, what should I expect and how should I prepare?
I've read through the Vault guide, but I'm wondering how deep they are likely to go with technical questions.
How in-depth should my knowledge be of leveraged finance specifically?
I have studied modeling materials and finished a self-study course, so I understand the concepts and the process. However, having never done a model in real life, I am worried about answering detailed questions. I've been told that modeling questions are actually valuation and financial statement questions--if so, I think I'll be fine, but I'm worried they'll ask me how to do specific tasks in Excel.
I have the Wiley textbooks on valuation and leveraged finance. Is it worth reading certain parts of these before my interview, or is that a bad use of my time?
Thanks!
I think you will need to know those technicals cold, it makes no sense for them to do a lateral hire at the associate level who has no idea what he's doing and cannot add value by leading the analysts and helping them model etc.
why don't u wanna be a lawyer?
I made the jump from law to IB but via an MBA program. I am finishing up my first year and will be at a BB this summer. PM me if you want with any questions. You need to know the technical stuff cold but not too in depth. (e.g. They may ask how to do a DCF model, but I doubt you are going to be asked for an LBO model)
Just wanted to wish you luck OP. I'm a 2nd year law student switching into finance. Keep me posted on how everything works out for you.
Hey, thanks for the comments so far.
I can describe how to do a DCF model in a few sentences, and I understand the principles underlying it, but I obviously need to learn a lot on the job in terms of actually doing one. Are they going to ask me much beyond how to calculate WACC or CAPM?
Does anyone have insight into the specific questions I asked?
Write down some formulae as if you were writing a model, check the yields, spreads, and market data on your way into the interview and try to work that model into the conversation. Also, check the annual reports and ask about how they account for off-sheet balance activity. No need to prepare it in excel - just be able to talk about it.
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