Getting a technical wrong = auto ding?
Do you think this is true?
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Really doubt it man. Unless you have an undergrad finance or business degree, I don't think they expect you to know that much technical knowledge. It wouldn't exactly be fair if they did.
True story, I wouldn't sweat it from my experience I always was asked two usually one fairly easy and another more complex, know for a fact I answered a few wrong but got invited in for more rounds so am pretty sure it's recoverable.
From what I have heard and in my experience, they ask technical questions until you fumble. The goal is to see how you react/your thought process when you don't know the answer.
Totally agree here. I will caveat, if you come from a finance / accounting degree, you are likely to be judged more critically on how well you answer technical questions. However, to our man's point above, it ultimately comes down to how you handle a question you don't know, which is not at all uncommon.
A good rule I learned when answering technical questions, "only peel back one layer of the onion at a time". In other words, don't get yourself into trouble trying to bite off more than you can chew. Remember, the interviewer is always much more intelligent than you are. Answer the question simply, if they decide to dig deeper then you can flex your muscle.
It probably depends on the difficulty of the question and how wrong you got it. If they asked you how a particular transaction affects the 3 statements and you got it wrong on one of them but right on the other two you are probably fine. If they asked you to name the 3 statements (and you are an accounting/finance major) and you couldn't, well that's a lot worse.
I would say it depends on context. Nervy first question? A good interviewer will give you a chance to redeem yourself. Some opinionated pricks looking for a reason not to hire you (rather than a reason to hire you) will instantly ding you. If you realise you've done this, say so later on.
We all make mistakes, even seasoned veterans get basics wrong. only a fool would judge you with a sample size of one. Queue fools V
If it's a basic question that you need to know the answer to then, yeah it absolutely is an auto ding, but if it is a more complex question and they are just testing your limits, then it isn't as big of an issue. If I ask you how you would value a company and you don't have a clue then it's an auto ding...
Def not always the case, unless it's something really basic. I screwed up on two technical and still received and offer.
I think it should be the case, given that none of the technicals you get asked should come as a surprise. There are volumes of ib interviewing books...if you didnt take the time to learn the material, why should the interviewer think you give a shit?
Assuming every technical question you're asked is covered in one of those interview guides.
Can you think of one that wouldnt be?
Yes...why not use CFO (A GAAP Number) plus interest and taxes instead of EBITDA to determine unlevered cash flow?
Are you kidding me? That wouldnt be in a interview guide? That the first thing any book covers. Distinguishing between GAAP net income and EBITDA.
Well... that's definitely not the "first thing" that is covered in Mergers & Inquisitions or Breaking into Wall Street guides... Anecdotes of people who got technical questions wrong but eventually received offers prove your point wrong. I bet the interviewers thought that they "gave a shit," right?
Your comments are all extreme. Saying "NONE of the technicals should come as a surprise" and that the above-mentioned question is the "first thing ANY book covers" can be easily used against you to prove you wrong.
You don't sound persuasive, just emotional for no reason.
No - but refusing to admit that you made a mistake after I tell you its wrong is. It's okay to say you made a mistake
You guys can PM me and I can give you our interview question list. And some are in the guides, some are not.
Also some people give brain teasers, some don't ...
1 question some of the M&A dudes like to give out is "what is the difference between IFRS and US GAAP" - I have not seen anyone answer that question completely
That's a good question actually, and I didn't have a great answer other than not being able to book LIFO inventory... more comprehensive answer from IFRS website linked below:
http://www.ifrs.com/Backgrounder_GAAP_IFRS.html
That's a ridiculously stupid question. If someone asks you that, just laugh. I could fill an hour long interview just discussing the differences between the two standards (though I am a former auditor). There are probably 50-100 fairly significant (if not more) differences.
In my experience:
If they ask you a technical question and you know the answer, its never 'enough detail'
If they ask you a technical question and you work out the current answer, it shows good problem solving skills but they want someone more accurate/quick.
If they ask you a technical question and you, for any reason, do not know the answer, your screwed.
I study a part Finance degree (2 modules out of 9).
You guys speculate way too much here. It might be harder for many of you to understand if you haven't been on the other side of the table but the answer is simple...almost always no. Maybe during first round screens or initial interviews where companies are just looking to weed out a large pool of candidates, but this will rarely be the end all be all of your interview if you blow a tech and nail everything else.
One of the biggest mis-conceptions of interview candidates is that they got dinged because they missed a technical question. There is a very good chance that that same candidate was dinged because of a multitude of other factors, with their miss on the technical question ranking very low on that list.
Technical questions exist to put you out of your element and see how you react to questions that might be difficult for you to answer. They are also there to make sure that you are not completely incompetent (I'll take back what I said to some degree, if you are a gigantic retard than yes you could be dinged if your response is outlandish or ridiculous).
Some advice: never assume technical questions are going to be a one and done in regards to your interview, I have seen more than one candidate completely self-destruct because of this mindset and they definitely won't be the last. Some companies will weigh these kinds of questions a bit heavier than others, but if you think you are done before its over you will almost certainly get dinged.
For full disclosure, I am speaking from experience after getting the opportunity to participate in my firm's OCR process during the Fall.
I messed up technical questions multiple times (during super day too) and still got an offer.
I messed up 12 technicals in a row and got an offer
Uh, where?
Laughing at me and telling me my question is stupid is probably not the best way to go about it though
I wasn't laughing at you - I was commenting on the M&Aer that asked that question in the first place. No insult intended.
True but I fumbled and got the right answer in the end.... Still got dinged. lol
Answering slightly incorrectly, but confident, and showing that you know your stuff is much more valuable, then answering every technical right, but timid.
They don't want the best technical guys, they want people that are prepared, confident, and can think through a problem without getting shaken.
There are probably only 3-5 specific technicals that you HAVE to get right.
wannabe2013 - being confident, enthusiastic, personable etc was all in the positive feedback... thats why it was weird getting rejected over answering technical questions 'slowly and with thought but correctly (i.e. getting to the right answer)'... lol In fact they said 'i showed good problem solving skills when answering the harder technical questions'
Either way... a rejection is a rejection. I'm sure they had their reasons.
Where did you get feedback? They told you it was because you answered the technical to slowly? I guess I could see them wanting a quick answer for one of the softball questions, but really I think that's pretty bogus.
At the end of the day, you're still competing for a select number of spots, right? There's no formula - You have to check every box, AND they have to like you.
If you're third on a list of 50, and they are only accepting two, thenit's tough to say that it is because you didn't give enough detail on a techical. Interviewing is very unpredicatable, and most of the judging is based on intangibles.
They leave the room, and whittle down a list after every round, right? they don't give you a "cut" or "pass" right when you get out...It's all relative. You have to beat the other people going in there on a lot of different aspects.
So you have to be everything you said: personable, smile, energetic, confident, and know what you're talking about. But there will also be 10 more of you with all those skills. sometimes it comes down to 1 answer, 1 facial expression, your handshake, something on your resume. It is very very difficult to differentiate, but in my opinion the best way is through attitude.
It was MS.
He made up a company and asked how i would project revenue in the DCF analysis (after asking how to do a DCF analysis). I broke it up saying output (she said the capacity was 50% or something) x price would be the sales revenue. Then he asked how i would project the price. I said look at historical prices and then look at the change over the years and use the average change? He said okay so whats that called in economic terms and then I finally got to inflation (he said this was correct). Feedback was that I should have got this immediately/without assistance.
Yes - your right - its always 'one thing'. So annoying! Agreed on the attitude comment - quitters will not see the light ever... Have to keep going! :) (The fact that my personality fit in/they thought I suited IBD/they would want to work with me etc motivated me.)
Hi Ladies and Gents,
Long time reader, first time poster. I wanted to see if anyone has had technical question experience with HL Los Angeles interviews. I recently had a phone interview for an Associate position and fouled up a cash flow question. Got most of it right, then blew it on the CF from financing section (booked the entries as outflows when they should have been inflows); just a dumb mistake. I was able to recover on a PE question where I was asked to list all the ways to tease up IRR, which I aced. What are your guys' thoughts? Ding?
My thoughts are that you made a small mistake and got most of the interview right, so you are worrying too much. Prob not a ding, but just wait a few days and find out.
Not an auto ding if it's a harder question. But if it's a fairly easy one (or it's something that all the other candidates got right) then yes.
One thing to note is that passing a candidate to the next round is not that black and white and formulaic. You could nail all the technicals and still get dinged if the fit isn't there or if the interviewer simply doesn't like you. Similarly, if you come off likable and smart, even if you don't get all the technicals (provided the ones you get wrong are not the easy ones) you can still be considered so long as there's not a huge gap in knowledge between you and other candidates.
Long story short - don't think about it because you'll never know with these things. And even if you ask for feedback, interviewers may not be entirely truthful and transparent with their reasons.
No, never an auto ding.
I once pitched a stock to a research analyst. It was in his coverage universe...and I didn't even know how they generated revenues in one of their divisions. Still got the offer.
No, never an auto ding.
I once pitched a stock to a research analyst. It was in his coverage universe...and I didn't even know how they generated revenues in one of their divisions. Still got the offer.
Thanks guys; your feedback is much appreciated.
Wrong answer to technical question - follow up email with right answer? (Originally Posted: 02/24/2016)
Hi there,
I recently had a phone interview where I answered a technical question wrongly. The interviewer didn't say anything and just moved on with the interview, but I realized afterwards that I missed the point of the question.
Is it recommended to follow up in email with the right answer? Or do you think it will do more hurt than good? Thanks.
Unlikely that it would help. More likely that you call more attention to your error.
No.
to clarify, the interviewer tried to lead me to the correct answer several times but I just missed the point...it felt like a pretty important question so that's why I was thinking of following up
To prove what? That you know how to use the google?
Well to prove that I'm serious about the positions and made an effort to figure out the right answer. I'm just thinking that while it may not help, it definitely shouldn't hurt to show initiative right?
Why not tell us the question and answer?
I actually would. It wouldn't hurt you more than it could help you. If I was the interviewer and a candidate had contacted me after the interview to clarify an answer it shows me if anything else that this candidate is serious about working here, and doesn't have an "oh well on to the next one" type mentality.
I say take a risk and go for it.
I have been on the side of interviewing college kids tons of times. If they miss a technical, following up about the right answer isn't going to do anything. Thank you notes don't do anything for me either. I've already formed my opinion.
Missing a technical isn't an automatic ding, but it can be if everyone else aced it. Sorry, OP, I've been in your position before, it sucks but you'll probably have to just move on and study harder for next time. Explaining the right answer via email isn't going to do anything.
How bad will a wrong answer hurt?
For example: How do you calculate FCF?
My answer: Net Income - Capex + D&A - Changes in NWC
I kinda stumbled through it, is that automatically going to hurt?
What questions did he ask to steer you in the right direction?
I would do it.
Okay it seems like the general consensus is that I should just let it go, but even though it probably won't help I still think it's unlikely that it would hurt someone's candidacy, so it's kind of like a "what do you have to lose" situation. Thanks all.
This is not iBankedUp btw...
If you answer a technical wrong, are you done with? (Originally Posted: 01/11/2008)
Seems like with fit people can bs anything, but it's hard to bs technicals so then the interviewer really has a reason to say you're out?
That's harsh! but probably true
If you catch it, is it ok to email right away and say no I am wrong
It's OK, but it might not help. The decision on your candidacy is typically made a few hours after the interview.
Not necessarily. Firms take whoever they want. An interview isn't a math test, where you can easily tell who's the best. It depends on a number of factors--some of which you control, some you don't. That said, the same interviewer will give the same technical to everyone on his/her schedule, so the comparison among candidates is easy.
If you say that you know the answer and you get the question wrong, then you are probably done for. If you get a technical to which you do know the answer, simply say so. If you have a vague idea, say so, and ask the interviewer if he would still like to hear your thoughts. The worst thing you could do is pretend that you know the answer and try to BS your way through it. I've flat out said in many interviews, "I don't know the answer to that"; the interviewer usually asks me to use logic and deduce an answer. Before answeing, I would clearly disclaim, "Well, I assume... so I guess...". Have gotten many call-backs despite not knowing a few techincals.
^^basically....just dont bomb a technical that your resume may suggest you know... Ex.. not know how (blank) affects all three financial statement...but have your resume say have you done something like financial statement analysis
This is absolutely not the case. I got technicals wrong in two of my interviews at BBs and still recieved offers at both. On the flip side, I nailed every question at another one of my interviews and did not recieve an offer. That being said, I think fit is much more important than technicals. Just don't totally bomb the question, at least get it partially right. Plus, I'm an econ major and the questions I got wrong were accounting - that might've had something to do with it.
i come from an engineering background so most of the interviewers don't really expect a lot of financial and accounting knowledge from me. when i was really stomped, i just told them straight up that i didn't know the answer and have gotten through the interview onto the next round even with that. i think if ur major is finance or accounting, then u will be asked different questions and will be expected to know the answers
If you claim to be an expert in finance or math or something and then get a very simple question wrong, you are probably done for. But if you say you don't know as much about something and are upfront with it, you'll be fine if you admit you don't know or are just guessing/reasoning when you start.
Fit is more important than technical, because anyone can learn this job in a matter of months (at least what an Analyst does...).
Stocks go up when investors are expecting low earnings and a company exceeds expectations; your chances of a call-back go up when the interviewer isn't expecting much and you wow him/her.
So set expectations low and exceed them rather than doing the reverse.
Big Technical Question Missed (Originally Posted: 11/06/2015)
.
Ding dongerino. It was meant to confuse you rather than to test your technical skills. I highly doubt if a clarification would help your case after this.
Shit. I hope they have mercy
How did other questions go?
.
Oh Lord, have mercy upon your servant !
So you missed 2 technical questions? On a scale of 1 to fucked, you're fucked
What eb was this?
Struggling with Technicals at Superday (Originally Posted: 11/05/2016)
Is this an automatic ding? Exactly how are candidates evaluated, especially if you go to a liberal arts school. If you are guided through a technical, are you not given an offer? What about messing up mental math?
I wouldn't say it's an automatic ding, but its close.
There are some banks which will press you on technicals until you run out of gas (Lazard, PJT, Evercore all did this to me during recruitment), and then there are some banks which will take it a little easier than the EBs but still expect you to answer the softballs perfectly (CS, MS). Then, in my experience, there are banks that don't ask many technicals but will do off-kilter stuff like mental math or unorthodox case study-like questions (JPM, BAML, Citi).
If this was a softball question like "walk me through a DCF" or "walk me through the impact of buying $100 of inventory", yes, I would say you're pretty much done at all of the above. If it's a harder question I think you are still probably not in a great spot relative to other candidates - if you think about it, everyone at a superday is pretty qualified. It's a matter of finding ways to cut at that point.
With mental math, also depends. I know Centerview asks a question where they do a 3 digit number times another 3 digit number, and they don't expect most people to answer. If this is like some simple stuff, then yeah it doesn't reflect well on you.
Thanks.
Jesus Christ, I got an aneurysm reading this
What type of technicals were they asking you?
Some places will push you until you mess up. I've certainly messed up technicals but I think the best way to handle a challenging question is by saying...
"I am not as familiar with this concept, but I think this is the answer and here is why"
Then walk them through step by step with your thinking. This will give you the opportunity to highlight knowledge you do know, and form thinking about concepts you aren't are as familiar with. If your educated guess is wrong, then take what feedback they say (most always walking you through the answer) and restate it in your own words to clarify you now understand it.
Some was on LBO stuff I was less familiar with. And I got a little bit confused on an accounting excercise with tracking a depreciating piece of equipment and how it affects the statements, but eventually got to it at the end with help.
Can't speak to the depreciating piece aspect but that one is usually considered to be "baseline"
LBO stuff (IRR, Cash on Cash etc.) is probably ok to be fuzzy with. Depends on how "high level" it is.
If everyone missed the question that day you should be fine. If the other interviewers aced it then it may raise questions.
Fit is still more important than technicals
Messed up technical? (Originally Posted: 01/11/2017)
Had an IB phone interview. On one of my questions I got a technical where I understood the concept but I made a calculation error (plugged in the wrong number into the right formula). I didn't realize until after. My interviewer said "great, that's right. I was solving with you and I got a different number but I think either me or you made a mistake or its rounding error, but you got it"
He was really laid back about the whole thing and I can't tell whether he was being nice about me getting it wrong or if he was more interested in seeing if I understand the concept than getting a number.
CAPM question? Probably wanted to make sure you knew the formula.
Multi-step valuation question. I knew all the steps, so he said "yup, that's right" about 3-4x during the question. It was very guided technical interview, with back and forth, which was cool. Just hope he didn't think I was weak.
Last round: poor technical Qs answers, what now? (Originally Posted: 12/15/2010)
Hi Guys,
I hope u can give me a quick opinion. For the past month and a half, I was interviewing for an investment analyst position at a boutique Asset Management firm.
Had two screening phone calls, then had to do an investment thesis (valuation of a company). Then I met with the CEO (NY IBanker with 25 years of experience) and director of equity research. Then I was asked to submit another presentation and took 3 weeks to call me back cuz they were busy. Last week, I had to submit a 3rd presentation of a fund and some investment ideas and with limited notice (night before), was asked to come for a last interview. Had a good interview with the lead PM and Marketing Director and then the director of equity research came to ask me some IQ questions. EV, how many stocks in the dow, how much to double ur money for x interest rate. For all these simple questions, it took me a while to answer or i got it wrong and had to walk him through the logic to get the answer right. It was poor performance at best, and I might have killed my chances there.
The ceo came later and told me he will speak with the teams on friday and call me. Haven't heard since. It might be they are busy or it is just they made up their mind. I sent a thank you email to the director of equity research the morning after the interview.
Should I call the CEO tonight and express my interest and maybe explain the poor performance on the technical questions? Or should I just send him a quick thank you email?
Sorry I wrote a lot, but for those that want to know more details.
1) It is not a chill place and you have to be quick on your feet, working with experienced traders and PMs. 2) I was one of the strongest candidates, and they were impressed with my investment thesis and were interested in my current experience as they thought it was an asset for the position. 3) i work full time already and had to do the projects after work in November,. while studying for the cfa and being very busy at work. I was burnt out by last week. 4) Made a good connection with the CEO, he called me back for feedback before. I don't think he will mind me calling him after market hours to talk.
Apologising sounds like a very weak thing to do as excuses are rarely well received. Acknowledging that you didn't perform on the technical questions turns it into a bigger deal. What you want to do is mitigate against this and remind them of the positive things that came out of your interview, i.e. your presentation, enthusiasm, fit, etc. The last thing you want to do is remind them of your technical questions, especially if they are deliberating between you and other candidates.
Personally, I would call them, not with excuses but with enthusiasm. Remind them again of what they'd be getting.
you sound very qualified for the position I hope you get it. Seems minor but really depends on how many people you were competing against. Who knows if they think your too good to pass up and only want to hire X they just may hire X+1
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