Acquisitions to REIB
I work in industrial acquisitions and development as an analyst. Have a REIB, M&A interview coming up with a bank. What questions can I expect? I understand asset level real estate, but I don't know anything about REIT take privates, one RE company buying another, corporate level RE, etc. Will I be asked corporate finance technicals ? Do I need to study these? Any suggestions appreciated. Do I need to be prepared to answer questions such as what is enterprise value, how is it calculated, etc? If so, does anyone have advice on how to study up quickly.
Yeah, you need to show that you’re serious about making the switch. The best way to show that is knowing corporate finance stuff and knowing why REIB.
What are some of the big RE M&A deals that have happened recently?
Why is RE M&A more interesting to you than asset level acquisitions?
What is FFO, how do you calculate it and why do we like looking at it?
What is EV and why do we use it as a metric when evaluating companies?
What do you think the day to day of an IB analyst looks like?
Walk me through how $10 of depreciation flows through the financial statements.
All stuff we used to ask analysts we interviewed (former REIBer)
Thanks for this, really appreciate it. Is there any guide or something you suggest I should read in particular to get up to speed? Only have a couple days to prep is the issue as I got the interview out of nowhere. Am I fucked? Also, do you have any insight as to what a solid answer to why REIB ? I know I’m asking a lot of the annoying (figure it out yourself) type of questions, but somewhat shitting myself cuz I gotta get up to speed in a limited amount of time. Don’t want to blow this opportunity, but not sure I even have the requisite skill set / knowledge to get through the process.
Google is your guide. Start with googling FFO. When you're in IB, you will constantly be in "figure it out on your own" situations with a deadline a few days or few hours away. So this is great practice.
If it's a first round, you should be fine. They probably won't grill you on technicals right away. It will just be the standard "tell me about yourself, why REIB, why IB, what do you know about what we do" and maybe a basic technical. I think - idk what firm you're interviewing for and I don't know their first round interview question list.
It's saturday night. If you want it, you will figure out the answers to all of these questions before the interview. I can't answer "why REIB" for you. The only answer that will work is one that is honest and comes from you.
Fair enough. Thanks for the help, regardless. Gives me a great starting point and enough info to go off of.
Good luck and report back how it goes!
Went well (including why REIB) until we hit the technicals. Did my best to study up in the limited time I had, but only knew it superficially (as in memorized what I could). A little curve ball here and there and I didn't stand much of a chance in progressing through the technicals. Thinking I have a better chance of going directly to a REPE focused shop rather than going the IB route as they will more so value my experience in underwriting asset level deals, evaluating various JV's and the rights outlined within them, selecting lenders, etc.
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To add on top of this, if you have extra time before the interview. Read through the information circular and arrangement agreement (if there's any) of some of the most recent privatization REIT deals, especially the ones that the bank you are interviewing with has done. So you have a clear understanding of how and why deals are being structured. What's the time horizon for the negotiation process. On the technical portion, learn NAV models, bid matrix and cap tables. If possible, learn how to use CIQ functions in excel to pull data from capital IQ.
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