E&Y Valuation, Deloitte Valuation interviews?

Rank: Baboon | 104

Hello,

I have a couple of interviews scheduled with E&Y and Deloitte, both for their valuation division within Advisory.

Do you guys have any experience with their interviews? Should I be expecting a lot of accounting questions? Or more finance/modeling type of questions?

I appreciate any insights!

Comments (66)

 
Sep 30,2009

I hate E&Y.

They lowball their fee quotes to clients on every project. They are doing this to win market share. Once the clients realise they have to raise the fee the next year, relationships are going to sour!!

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Sep 30,2009

I went through second round interviews with E&Y Commercial Due Diligence/TAS.

First round is half fit along with a mini-quant case... think something like "how many manholes in Manhattan".

Second round expect 4-5 consulting-esque interviews including general fit as well as brainteasers and typical quant/qual cases/market sizing.

No finance technical questions, no accounting questions -- that I experienced.

[Edit: Sorry, I went through my logs and my interviews were with Commercial Due Diligence, not Valuation. So take what I've written here and below with a grain of salt. Apologies for the mixup.]

 
Sep 30,2009

Balooshi,

I've never worked at E&Y, but thanks for the input regarding their fee strategy... It's definitely an important aspect of the firm, because it affects the growth of the employee and your pay!

Chron3K, thanks for the post! I'm surprised that there's no technical questions - I was actually expecting tones of technicals, since the position is for valuing companies, assets, etc... I dislike those "how many manholes" questions. I guess I need to study up on that!

 
Sep 30,2009

Yeah, I would definitely work on market sizing. Other case questions, besides the manholes, also asked in super day:

How many mens' suits sold per year?
30 minute, 1 page typed written case on: Market size for tires
Brainteaser: What's the square root of 10, followed by:
What's the annual sales for wrist watches and how has it changed in the last decade?

Like I said, no accounting or valuation/technical questions that I can remember.

[Edit: See comment above. These were for Commercial Due Diligence division, not Valuation. Sorry.]

 
Sep 30,2009

Haha, no problem at all! Thanks for sharing the info though! :)

 
 
Sep 30,2009

Given the name of the practice, I would think the Excel modeling test could run the gamut. If you are providing models for client services staff, I would assume they may be more involved than what is typically seen by staff in the other practice areas. Excel isn't difficult to learn though, so it's possible they would teach you what you need to know. If you are comfortable enough I would ask the Senior you networked with if they have any insights - there is a delicate balance to doing something like that "appropriately" without looking neurotic though.

Have you tried consulting the interview insights section of WSO? I believe it is paid but had valuable information when I looked at it. Good luck!

 
Sep 30,2009

Great info. I will definitely check out the interview insights section. This is a client service role too apparently and I will have to help develop the practice. Thanks for your reply!

 
Sep 30,2009
 
Sep 30,2009

So far I have done some 3 statement modelling and some DCFs as well as brushed up on my finance knowledge. I read a bit online that it could be them giving a Income statement + Balance sheet and asking me to make the cash flow statement then maybe a DCF. Could it really be that simple?

 
Sep 30,2009
zxq94:

So far I have done some 3 statement modelling and some DCFs as well as brushed up on my finance knowledge. I read a bit online that it could be them giving a Income statement + Balance sheet and asking me to make the cash flow statement then maybe a DCF. Could it really be that simple?

Yes, it might be. You'd be surprised how many people struggle with a statement of cash flows.

 
Sep 30,2009

Hm! I hope so then. I guess my accounting knowledge can come in handy.. ha ha.

 
Sep 30,2009

Interview is tomorrow, last minute bump for helpful advice!

 
Sep 30,2009

How'd the interview go? What did they test after all?

 
 
Sep 30,2009
 
Sep 30,2009
prnz:

Sent PM

WHy not post here on this forum and share your knowledge. That is, after all, the point of this website, is it not?

 
Sep 30,2009
JBGH:
prnz:

Sent PM

WHy not post here on this forum and share your knowledge. That is, after all, the point of this website, is it not?

Agreed, post it up.

 
Sep 30,2009

In my experience the Big Four groups do not have a technical interview. Demonstrating an interest is important but I wouldn't expect to be asked anything beyond general valuation technique. The interview focuses more on fit. Of course, the interview might vary by group, office, and firm but this is the first I would have heard of a case interview.

 
Sep 30,2009

Agreed with the above. I interviewed, and expected much more than what I got.

Its comparable to any first-round standard IBD interview. Why this, why that, tell about your experiences at x place, how would you value y and z assets, why should we pick you, etc.

The technicals were some of the easiest I came across during my trials and tribulations. I just didnt fit.

Read the behavioral guide from here. Seriously, it helps.

 
Sep 30,2009
bobo:

Got an interview with one of the big 4s in their Trasaction Advisory & Valuation group. Was told that first round is meet and greet and then there is a valuation case.

Any guidance on what the case interview will be like? Will I be required to build a model?

Bobo

I've never heard anything about any valuation case studies in first round meet and greets. Do you know any more specifics about what they told you the case would entail? If you're going through one of the more common recruitment channels there surely has to be someone you can ask about this. I highly doubt you would have to build a model.

 
Sep 30,2009

Thanks all, I was told that you will be given a case about a company and asked how you would value the business. I am guessing it will not be too detailed and more general in terms of which methods can be used to estimate value.

I will post here once I go through the process to clear things up.

Bobo

 
Sep 30,2009
bobo:

Got an interview with one of the big 4s in their Trasaction Advisory & Valuation group. Was told that first round is meet and greet and then there is a valuation case.

Any guidance on what the case interview will be like? Will I be required to build a model?

Bobo

Is it E&Y or PwC? Full-time? What subgroup? I have friends that got cases last year.

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Sep 30,2009

Re the technical questions, I guess you'll be asked the classic valuation questions, nothing extremely difficult I guess... Here are my two cents:
1) WACC (not only the formula, but a detailed breakdown of it: how to estimate betas, the effect of taxes, inflation effects, alpha/additional premiums, etc.)
2) Walk through DCF
3) Maybe some valuation multiples
4) Depending on the team you're applying for, you might be asked something about option pricing

Good luck

 
Sep 30,2009

Thanks for your input. It is much appreciated. I know it's for the TMT vertical so anything else would be incredibly helpful. Big life event coming soon!

Array

 
Sep 30,2009

how'd it go? what was your background?

 
 
Sep 30,2009

Most likely technical questions, the exam may be a modeling test.

 
Sep 30,2009
Ruskii:

Most likely technical questions, the exam may be a modeling test.

Thanks! Is it likely they will ask me to actually break out a model on excel or simply have questions relating to modeling?

 
Sep 30,2009
subrosa:
Ruskii:

Most likely technical questions, the exam may be a modeling test.

Thanks! Is it likely they will ask me to actually break out a model on excel or simply have questions relating to modeling?

You well get standard technicals. The "exam" may be the technical portion with just questions, or they could give you a laptop with a basic template and have you do a dcf, not sure how they do it. When I had an exam I got the dcf but studying for one will help you for the other.

 
 
Sep 30,2009

all behavioral and fit questions at the big 4 even for TAS. I would however think that you should have at least a basic understanding of valuation and financial modeling. Good luck!

 
Sep 30,2009

The only non fit question I got was explaining how the 3 financial statements flow together when depreciation increases.

 
Sep 30,2009

bringing up this old post as i browse through wso, but was this for an internship? big 4 recruit at my school but most students seem to interview only for the consulting internships, so i was wondering if it's worth asking about valuation/transaction jobs during networking sessions

 
 
Sep 30,2009

They'd probably have a bigger focus on accounting questions and ask about hypothetical changes to the CF statement if x happens (ie. pay a dividend). Keep in mind, the fairness opinions arms of IB's actually compete w/ the Big 4 so that gives you an idea of what skill set is emphasized

 
 
Sep 30,2009

Are you experienced or fresh out of undergrad?

 
Sep 30,2009
valuationGURU:

Are you experienced or fresh out of undergrad?

Fresh out of undergrad

Jack Mehoff

 
Sep 30,2009

I would assume you should be comfortable creating a DCF from scratch and have a basic ability to write. If you have any questions let me know, I'd be happy to help.

 
 
Sep 30,2009
 
Sep 30,2009
goldilocks17:

Has anyone interviewed with Stout Risius Ross? I have an interview for a valuation analyst position and was told it'd include a technical and written exam. The technical exam consists of accounting and finance questions. What's the best way to prepare for the technical exam?

I also have the same question. Would appreciate any help in preparing for an interview at SRR. Where is your interview goldilocks17?

 
Sep 30,2009

I too have the same question. Could you please help on preparing for the interview at SRR?

 
 
Sep 30,2009

You should be good with those guides -- of course know DCF, everything about the correlation btw. the three statements, WACC, not too sure if you need to know relative valuation methods

 
 
Sep 30,2009

Know the DCF cold. Understand market multiples (M&A and Public Cos). If you want to get smart, understand what implied multiples are... they're derived from the DCF against EBITDA, Rev, etc...

Beyond that, maybe understand some of the impairment tests, FASB rules, etc...

I worked at valuation firm post my 3 yrs of IB and found it to be a mistake, and consequently left after a few months. Beware, it's not like IB, although it is a good starting point, I must say.

Good luck

 
Sep 30,2009

Do you think I will have to know this stuff cold even for an intern position?

 
Sep 30,2009

you might want to review some of these: http://www.ibankingfaq.com/category/interviewing-t...

 
 
Sep 30,2009

PM me

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.

 
  • eyelikecheese
  •  Sep 30,2009

They are usually mostly all fit. I had KPMG and PwC final rounds. KPMG was all fit, no technical, just walk through resume, and not BS HR questions, just random chit chat. PwC was the exact same. I remember one guy never took a glance at my resume, we just talked about the NY Yankees the whole time. The only tech question I had was "How do you find WACC and FCF?", that's all. I wouldn't worry too much about it.

 
Sep 30,2009

Kenny_Powers_CFA - Sent.

ELC- Thanks for your advice. So, did you already receive an offer?

 
  • eyelikecheese
  •  Sep 30,2009

This was last year during recruiting. I did, but it wasn't really what I was going for.

 
Sep 30,2009

What'd you go for in the end then?

 
Sep 30,2009

Pure Fit, i am assuming you already know the basics of valuations.

 
 
Sep 30,2009

You want to communicate your desire to pick up the technical skill set and why the job appeals to you over say banking. I would think that this would be more useful to IB in the future because you will learn a technical skill set vs. focusing on more soft skills in PWM.

 
Sep 30,2009

Where you are unable to answer a technical question, make an intelligent guess and briefly ask for the correct answer later. the latter is to show your interest

Our dept's panel will throw technical questions at interns knowing very well they dont know the correct/exact answer. We just want to see their thought process and ability to handle pressure & think quick.

My favourite (though I'm rarely on the panel) is asking for the square root of 0.9 :) One kid took ages and then responded with 1.8 ... he didnt make it to the 2nd round.

 
Sep 30,2009

Valuation is basically all modeling and technical, of course it'd be good for future IBD attempts. Know the basics and you should be fine. Can't expect you to know very much coming into an internship (unless you have previous experience).

 
Sep 30,2009