Real M&A interview questions
Hi all
Just had a M&A interview, how would you answer the following questions
1. How do you count a property value with no cash flow generation in your EV
2. In a M&A, what are some of unusual items you need to manipulate in your EV calculations
3. Give me some investment highlights that you would put on your Teaser/OM/MP
4. what kind of tax rate you use in FCF calculation? I answer effective tax rate, the interviewer called me wrong.
What do you think of the difficulty of these questions?
Found the answer to Q4 http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/taxrate… It seems like the interviewer is not exactly right. You can use both. However, Marginal tax rate is better.
Question 2 is framed a bit oddly and question 3 doesn't interest me.
I'll pick up on #3 for eusuric. Investment highlights are, as stated, investment highlights. You somewhat put on your salesman hat here and talk about the selling points of the opportunity. If you are in a sell-side role and your client has low employee turnover in a high turnover industry, that might be a selling point. Record sales and other financial metrics might be selling points. The market area might be a selling point. These are high-level highlights to pique the reader's interest before they dig further into the opportunity.
M&A Interview Preparation (Originally Posted: 02/07/2018)
I have an upcoming interview in NYC for an M&A group (MM think, RBC, Mizuho, etc.). I know that it will probably be more technical intensive than an interview for a generalist or coverage group role.
I've already read through the guides, is there anything else I can do to prepare for more of the M&A specific questions.
Bump
Interview questions M&A role (Originally Posted: 03/30/2018)
Dear all,
I had an interview for an US investment bank and I was wondering about a question which is the following:
Assumptions:
B holds a 60% stake in A
A is a publicly held company:
200.000 outstanding shares + 5 000 treasury shares Share price : $10 Net Debt : $100.000
B is a privately held company: B holds a 60% stake in A Net debt : $100.000
Questions:
Enterprise value and Equity value of A
Equity value of B : Does it correspond to 60% of the Equity value of A ?
How to deal with it? Is it about consolidation?
Thanks,
David
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