Elite Boutique Technicals

If anyone has interviewed at an EB or just got a really hard technical question in general, drop it below.

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Comments (25)

  • Prospect in IB-M&A
Apr 25, 2020 - 4:31pm

This question is too broad for you to get any insight to be quite honest. At some EBs I've interviewed at, I've had the easiest technicals and breezed through the interview (how does $10 of deferred liabilities flow through the 3 statements?). At others, it was conceptually the hardest experience I've ever had in my life, and I felt so shook that I doubted I could accurately rehearse the alphabet - I wanted to cry, and I never cry. If you pinpoint which exact EB you're hoping to learn about, I think you'll be more likely to get an accurate response because every bank does it differently

  • Intern in IB - Cov
Apr 25, 2020 - 4:55pm

I wanted to cry and I never cry

shook

imagine using the word 'shook' unironically

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  • Intern in IB-M&A
Apr 25, 2020 - 7:20pm

No use in memorizing questions, just study this shit to where you understand it, like really understand it, then no matter the question you will be able to answer it, and even if you don't fully get it right you will be able to speak in a way that demonstrates competence

  • Prospect in Other
Apr 25, 2020 - 7:26pm

A company uses cash to pay down it's account payable and keeps increasing its account for cash received in advance. What happens to working capital? Would you finance this company with credit?

  • Prospect in IB-M&A
Apr 25, 2020 - 7:46pm

So if cash received in advance is increasing, and you use that to pay off accounts payable, your liabities should continue to grow while you generally won't be keeping that much cash on hand (using it to pay off payables). As a result WC would grow negative?

In terms of financing the company w/ credit (I'm assuming debt?), I think if I can just use the company's cash from accounts, would not have to incur interest expense? But depends on how much cash from DR they have left over from paying off payables?

Could be very wrong here, just thought I'd take a shot.

  • Intern in IB - Gen
Apr 25, 2020 - 9:50pm

Wouldn't this depend on how the amount for each? one increases wc and the other decreases it, but without the amount how would you know what happens? I'm a bit confused on how to properly answer this. Question seem very vague without numbers. If the company is using all the cash from deferred revenue to pay down the ap, then it would remain the same.

for the credit question wouldn't it be the same thing? it depends on it leverage ratio, comparable companies leverage ratio, and other?

I'm not sure if I'm completely wrong.

  • Intern in IB - Gen
Apr 25, 2020 - 9:52pm

but yeah to echo the above if the company has enough cash inflow, can't they just stop paying off the aps and use that as financing instead of taking debt? It would be cheaper, but doing this would increase the wc capital.

Apr 25, 2020 - 10:11pm

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