I just sent this to someone and realized it may be useful to others. This was sent to me by an alumni at a BB I was interviewing for re: what to prepare for. This should not be used as EVERYTHING, but covers most of it.
Make sure you know the following:
Technical part (60-80% depending on an inverviewer):
- what is Investment Banking and what it does ( you need to know how to explain that in simple words. I was once asked to explain it as if I was explaining to my Grandmother who doesn't know anything about finance)
- basic accounting knowledge - Income Statement, Balance sheet, Statement of CF. Should be able to talk about each, walk a person line by line and know how the three are interlinked.
- Free Cash Flow and Working Capital concepts ( change is Net Working Capital) - how to get to those and why look at them.
- NPV concept and its application ( Discounted Cash flow analysis, etc.)
- CAPM concept - risk free rate, market risk premium, beta.
- concept of beta, separately. What is it? Where is it used? How to calculate?
- WACC and its components
- ways to value a Company (Comparable Company analysis, Precedent Transactions, DCF, DDM). Know how there methods are different and what they are.
Also, you should know what is going on in the market ( interest rates, current economic trends, what FED is doing, know what big deals happened recently, be familiar with terms LBO, MBO, Private Equity ( PE) firms, Hedge Funds).
Soft skills: ( 20-30%)
- tell me about yourself ( should know you story cold down, talk about your resume, experiences, and skills)
- why do you want to do IB?
- What makes you unique and why should be hire you?
- Give an example of a situation when you had to make an important decision that
influenced others / group?
- Know your strengths and weaknesses and be ready to give examples from life
- Be ready to give an example you as a team player
- Why X Firm? ( know basic info about the Co: divisions, Bank's story, CEO
- basically read the website thoroughly)
thanks bud
I've had first rounds at most BB's for SA positions, and I'd certainly say its inversed: about 70 percent fit, 30 percent technical. That might change for later rounds.
i agree with big unit. i've usually only gotten a couple of technical questions and mostly fit. i just had a superday on wednesday and it was all fit
I probably met you at that superday, apache.
The hardest question I have received thus far. Explain in detail the premise behind FAS 142. What is it? Why was it instituted? What are its implications? Give examples of how this might affect the financial statements of two corporations in seperate industries differently.
b, did you hear back yet?
Not officially, but I did get a positive response from the interviewer following a thank you note, saying that he is hopeful that I'll be joining them this summer. I'm probably on the waitlist, as I didn't get an immediate offer. Although, HR did say that it should take a week, regardless of positive/negative/neutral outcome. You?
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