PE recruiting from MBB

Based on the most helpful WSO content, here are some insights and recommendations for your questions:

A. Treating the Next Step as a First Round Interview

• Yes, treat it as a first-round interview: It's always better to be over-prepared than under-prepared. Even if it's informal, it could still be evaluative.
• Delaying the interview: If you feel unprepared, it's reasonable to ask for a delay. Be transparent with the headhunter (HH) and explain that you want to ensure you are fully prepared to make the best impression. This shows that you are serious about the opportunity and want to give it your best shot.

B. Preparing for PE Interviews as an MBB Consultant

1. Understanding Accounting and Financial Statements:

   • Fundamentals: Make sure you know the fundamental concepts of finance and accounting inside and out. This includes understanding the three financial statements (Income Statement, Balance Sheet, and Cash Flow Statement) and how they interrelate.
   • Resources: Consider using textbooks like a Corporate Finance textbook or Investments by Bodie to broaden your view and solidify fundamentals.

2. Learning LBO Modeling:

   • Practice: Start by doing 10 or so paper LBO models, then move on to 1-hour LBO models. This practice is crucial as it will help you get comfortable with the process.
   • Guides and Resources: There are several guides available, but the best resource might be departing 2nd-year analysts who have been through the process. They can provide guidance on questions to expect and might even offer mock interviews or actual case studies from their interviews.

3. Case Studies and Thinking Like an Investor:

   • Case-in-Point: Grab a copy of "Case-in-Point" to understand the framework for tackling case studies.
   • Framework Development: Create a framework for answering questions like "What would you need to know to make X a good investment?" Focus on cash flow, industry, and deal economics (e.g., purchase prices).
   • Random Business-Related Questions: Be prepared for random business-related questions, such as "Would you rather invest in copper or a copper mine?" This tests your ability to think critically and strategically.

4. Excel Skills:

   • Master Excel: Ensure your Excel skills are sharp, as this will be crucial for modeling and analysis in PE.

5. Networking and Building Relationships:

   • Leverage Relationships: Build strong relationships with your team and seek out PEG/PIPE staffings. This will give you a better picture of how to execute the jump to PE.

By focusing on these areas, you can effectively prepare for your PE interviews and increase your chances of success. Good luck!

Sources: PE Recruiting Guide, Basic Questions About PE Recruiting Answered, How to Prep Before Starting PE Gig, PE Recruiting Guide, How do the top students at Wharton and Ivey do it?