Houlihan Lokey: Interview questions and prep?

hey,

I was wondering if anyone had experience interviewing with Houlihan Lokey and what I should be prepared for during an on campus interview. What sort of questions do they ask? are they known to ask difficult questions? any help is greatly appreciated.

 

I interviewed with them a while back and they were not terrible. Superday was 4 interviews, mostly behavioral with one that was all technical. Again, interviews can vary greatly depending on the individual so you should be prepared for anything.

My first round with them was over the phone and was actually pretty technical if I remember correctly.

 

Know someone who did their analyst stint there. The culture is a sweatshop, big time. You will be worked mercilessly. Unless you're in NY Restructuring. They seemed to get out earlier than NY M&A kids. Apparently there isn't much in they way of helping analysts place into PE. Sounds like good MM deal experience, but tough to get an exit without being REALLY proactive.

 

actually houlihan works mostly on the creditor side of restructuring- it's way more boring and less interesting than say blackstone or lazard or evercore, who often take the debtor side. creditor is just dealing with bonds.

if youre interviewing about restructuring, know about the order of debtholders - who gets paid first to last. Also types of restructuring, like prepacks, amend/extend, etc.

houlihan's case study (just google it) is good too.

 

I think it's office specific, so not all of this will apply to you, but this is what I know:

They love accounting. Assuming you already have all your behaviors down cold, brush up on your accounting and general market knowledge. It'll be a mix of your experience vs. relevant technical questions as well as random technical questions. What I mean is yes they will have you run through your resume, talk about specific deals, ask you how to do a DCF,etc, but then they'll throw in "is FIFO or LIFO method better and why" or "what is Gold trading at now." Some also have a technical test but it's not too hard.

PM me for more info. Good luck!

 
Arch Pei:
Hi guys,

I am going to be interviewed by Houlihan Lokey's Greater China team this Thursday. The first time will be a phone interview. The position is for corporate finance, and since Houlihan has just entered China, I am not sure what specific area will it be (I guess M&A is the most possible).

Does anyone have any ideas about what they ask in finance interviews? I have read through some posts on this forum which are greatly helpful, but still yet to see many specific questions/style of their interviews. I am a graduate with roughly 1 year experience, so I think the process would be very like a campus interview, rather than an experienced one.

If anyone is so kind to give me any guidance I would be very grateful. And it is my duty to invite you for a drink whenever you come to Greater China.

Hi,

Thanks very much for this comment. It help me to think about my ideals.

Tks again and pls keep posting.

If you want to get more materials that related to this topic, you can visit: http://interviewpreparation.biz/

Best regards.

 

yeah. I had my interview with HL Cor Fin and got an offer and I was asked accounting questions. complicated ones too. very relaxed and laid back interviewers though

 
Best Response

I had 3 IB superdays on Monday, back to back. They all asked the same shit.

Walk through resume, why this school, tell me more about x job, y internship, and z internship.

I see you worked with LBOs in y internship; can you walk me through an LBO?

What do you expect your responsibilities to be as an analyst here?

Given that answer, why do you want to do IB?

Why this bank over anywhere else?

What do you bring to the table?

Why, in theory, is minority interest part of EV?

He said I was the first person to get that one right, then the interview was over. I asked some sick questions to seal the deal.

Array
 

Hi Esther,

I'm in a similar position as you are, however, I'm interviewing for an Associate position on the FAS - Portfolio Valuation team. I had a super day last week and I have a written technical and two more finals with the MDs. In total I've had six interviews.The questions were pretty standard - story, DCF and few other technical questions. I got a spontaneous questions about what book I have read. I also got a question about how to value a company with no financial data/information but that it had $1m in its first round of financing (Still dont know the answer). But relax it should go well, but make sure your story is consistent and well thought out.

Also I wanted to ask you about the written test, what were the questions like and how long did it take. Any pointers? Thanks and goodluck.

Regards, Dejaveau
 

Hi Dejaveau,

Thanks for your reply. Very helpful.

The written test had two parts. The first part was like an accounting homework question. I was given a laptop and constructed a proforma and calculated the FCF in excel. The second part included 10+ smaller questions, all common stuff.

There was one question I was not sure about, asking whether the cost of debt could be higher than the cost of equity. Any thoughts on that?

 

I'd learn how to spell the name of the firm first.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

For interviews at HLHZ restructuring. they guy asks you 'do you even know what restructuring is?' and if you say no he'll say thank you for being honest, most people say yes and give a quick summary of something they read the night beofre. and then he will explain it to you and youll be in a much better position.

if you are asked say i've read up on it, but i definately want to learn more. or something like that

 

I am currently a second year analyst at a MM bank andI am interviewing for an experienced analyst position at HLHZ as well...for the Chicago Basic Industrials Group. Do you happen to know anything about the group in terms of hours, comp, deal flow and the quality of the people who work there?)Also...any idea on what to expect in terms of interview questions? I have heard they like to focus on technical..what can I expect as an experienced analyst?

Also..I am not quite sure that I want to stay in banking...I do like the work..especially M&A but I do not know if I have the stamina to keep up with the hours for another year and a half or so...I have recently been thinking about maybe getting into the valuation group at one of the Big 4 or a top financial consulting firm in Chicago..My impression is that the work builds a strong financial skill set with tolerable hours and comp. in the 80k range for an experienced hire...am I way off? would valuation be a bad career move after banking?

 

Chicago BIG sounds good....and ke18sb...why does valuation suck? Would you mind elaborating. Does anyone else have any thoughts.Is it really uncommon for people to move from banking to valuation? will comp be in the 75k+ range in Chicago? I'm attracted to valuation because my impression is that I would continue to build a finance/accounting and analytical skill set with good hours and decent pay...

 

I worked in valuations in Chicago for a year and left because it was extremely boring and the pay was not that great. First year base was 55 with a 10-15% bonus. Much of the work is for SEC compliance post-transaction (Purchase Price Allocations) The more logical progression is usually from valuations to banking and not the reverse. If you're looking for a slower paced environment you might want to look into it, but as I said, it was not for me. Feel free to PM me if you have more questions.

 

Just wondering how your interview went. How was it structured? What sort of questions did they ask? Which office was it for? I'm currently a 2nd yr in a middle market Lev Fin group - considering targeting HLHZ in another year or so, particularly FRG. Any insight you could provide would be greatly appreciated - thanks.

 

I've worked with HL on a deal and they are terrible. That's my experience.

I know you know a guy who knows a guy, but I'm telling you from first hand experience (and I've partnered with most other banks on transactions) that these guys are a complete joke.

Can PM me for details

 

Thanks for responses.

Should have added in the OP that this is for the Dallas office.

I come from down in the valley, where mister when you're young, they bring you up to do like your daddy done
 

Its going to be at least 5-6 rounds of interviews and all will be 2 on 1. Also, each one will be at least partially technical. I had one "stress-test" interview that was almost completely technical and dug pretty deep into understanding. Same as everyone else, theres going to be an hour long exam which is pretty challenging all told.

 

For an analyst position?

The 2nd round at the Chi office didn't include an exam; it was 6 back-to-back interviews. 1 was purely behavioral, 1 was purely conversational (what are your hobbies, what do you like to do for fun, etc.), and the others were technical, but not in a stressful way as long as you know the material.

Hope that helps!

 
JMu:
Thanks man. I have mine next week. They said it would be a full day of interviews followed by a technical exam. Which group did you interview with??

Pretty sure all the groups are the same. A buddy of mine interviewed restructuring this year. All day interviews and an exam. Be ready its supposed to be pretty technical even most of the interviews.

 
afalcon10:
needless to say HLHZ takes very very few non finance majors. that test was a douzy for a econ major at a ivy without a undergrad business program.

This is kinda embarrasing but I spent 5 minutes looking for the word "douzy" online. Still no clue how it applies to this situation. Someone help please :)

PS: Thanks for the help guys

 

It's for an analyst position. I graduate in May,'08. I went back to studying my accounting/corporate finance text books since I was told that. Does any one know compensation level and hours for this position at Houlihan or Harris Williams?

 
 
mdr24:
which office are you interviewing for nyc or la? A friend went to their la office's superday last year and said he got 1 technical question the rest were fit. Apparently the nyc office is very different from the la office (at least that's what they told him).

Interesting. One of my professors was telling us one student he taught a year ago who was asked, in an ibanking interview, to put together consolidated statement right on the spot--in front of a panel interview. So, I think it's all different. I will share my experience on this thread in a week.

 
 
nyc123:
if they asked you to write the name of the firm on a piece of paper you wouldn't even be able to pass that...

I am not sure if I'm following the drift here, but I think it's an extension of the 'write your name on the white board story' in the other thread.

 
 

I was not an econ/fin/acct major. I had an interview with Houlihan and it was brutal. All technical questions and the guy was a bit of a jerk. If you're tied between Houlihan and Harris Williams, I'd recommend the later.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Although, special purpose entities are off-balance sheet for financial reporting purposes, in legal reality, the claimant would attempt to "penetrate the separation of entities"- forcing the sponsor parent to become responsible for all related liabilities, and assets, acting as a guarantor of last resort. This approach was successful in the Enron case.

So if you get substantial information on a SPE, to be on the safe side, I'd treat it like a 100% owned subsidiary company, but the challenge is getting a hold of the SPE's assets and liabilities, which for the most part does not exist unless you find the sponsor charitable trust that owns the SPE's voting stock, probably in some tax-free haven like the Cayman Islands, or Bermuda.

Examples include off balance sheet Structured Investment Vehicles (SIVS), and conduits set up by banks to support commercial paper. Although, not openly disclosed, the associated bank, just acts as a loan provider to the SIV/conduit in the event that the conduit is unable to refinance maturing paper.

Also, even though the bank created the conduit, voting shares in the conduit are actually donated to a charitable trust to circumvent the consolidation treatment with the sponsor bank.

But during litigation, lawyers would try to force all related banks to bear responsibility on outstanding debts and liabilities held by a conduit in credit default. SFAS 140 covers financial reporting for SPE's in the U.S.

 

Come on now, I know at least one person on here has interviewed with HLHZ

-------------------------------------------------------- "I do not think there is any other quality so essential to success of any kind as the quality of perseverance. It overcom
 

Bradz-

I went through the interviews for the analyst position at hlhz--the first round. I think I did fairly well on my first interview... I am waiting to be contacted for the second round. So what happened with you? Did you go through the second round yet? If so, how was it? Were you given some kind of test?

 

I went through SA interviews with their NY office a couple years back. From what I remember, my first round was on the phone and was pretty much all fit, with a few easy tech q's thrown in there. Second round was in their office. 4 interviews. 1 that was with a young analyst, all fit. 2 were partially fit and partially pretty easy technical. Then I had one with an associate that was all tech. 15 minutes of the standard questions like in the WSO guide. Then, since I had said I did research on company X in my resume, he pulled out their 10-K and asked me questions from that for 15 minutes. It was one of my worst interview experiences haha. I guess I didn't do too badly, got invited back for a third round in their office, meeting with senior level people. Almost all fit, high level stuff about why I wanted to do banking, teamwork, etc. In the end I turned them down for another firm.

As I tell everyone I speak with about interviews, be ready for anything. The worst thing you can do is prep for a "fit interview" because everyone says their interviews are fit, and then get some dick analyst who wants to grill you on valuation questions. Study for everything so you aren't surprised by anything.

Good luck in your interview. I know a few of the senior people there and they are good guys.

 

Yes, they were technical when I talked with them. Also some classic tough interview questions -- how many #2 pencils could I fit into a 727; how many telephones are there in the state. Know your financial statements inside and out, remember your financial accounting classes, be able to calculate WACC, and be ready to take a brief exam. But most of all, keep your cool and be humble/eager/easy-to-know. Those are the best tips I have.

 

it sounds like i have a lot of homework to do

i took financial accounting (my only accounting class) 2 years ago. humm, i hope i can pick it up within a few days

can you tell me more about the brief exam? was that at the first or second round?

 

That's an important thing to consider. If you have a liberal arts background, then you'll probably won't be required to know much about the statements, DCF, APV, WACC, etc, etc.

However, as Zala said, be ready to answer lots of accounting questions if you listed financial accounting under relevant coursework.

 

i didn't list any relevant coursework in my resume but they did ask for an unofficial transcript, which lists one course of financial accounting an money and banking

can you guys recommend anything else besides the vault guides?

 

You will get the test if you make it to the second round, so I would at least prepare enough for basic level accounting (and we are talking very basic). The technical exam is not so much to weed candidates out but just to make sure you have a minimum level of knowledge/understanding.

I can't say for sure that they will be more lenient on the technical questions without a finance background. But I think as a rule of thumb, if you want to go into investment banking, you have to expect no leniency, regardless of your background.

 

Were there the tricky questions? Like the ones asked above... -about pencils in a 727... What are the dimensions of both? Is the plane with seats, without, cargo? What kind of pencils? -phones in a state... Actual hardware phones or phone numbers? The largest possible number of telephones in USA and Canada would be 9,999,999,999. Then depends on how many area codes are in a state... -Am I thinking about this right?

 

I am a second year analyst at a middle-market firm. I have a office interview for a lateral hire position coming up at Houlihan's Chicago office. I was wondering if anyone had an idea of what I should expect. My first interview was over the phone and I was mostly quizzed on my reasons for leaving (want to focus on M&A) and my experience...got asked questions on comp and whether I would move before the summer..Had a couple of technical questions: if company changes useful life of an asset from 20 to 10 years...how does that effect the three statements.

 

Couldn't tell ya, but I'd be surprised if they gave SAs a test. FAS might be a more technical group though. When I was there, one guy mentioned the test and said it's basically all accounting, you get 2 statements and you have to back out the 3rd.

 

hey im interviewing for their CF this friday and i was wondering if you could tell me a little more about the superday. how technical was it? any information would be greatly appreciated

 

There won't be a test, and the level of technicals varies between groups/cities. I went through both Restructuring and Corp Fin for full time, and Restructuring was almost all technicals while Corp Fin was almost all fit. Don't worry about a test but be ready for anything else really. The guides from this website will have you prepped for anything you would need.

 
jen055:
Hello! I have an interview on Wednesday,(in 5 days) for 2nd round at NYC for the Financial Restructuring Group. Does anyone know what their 2nd rounds are like? I know they get technical but I was wondering if anyoe knows what kind of "technical" questions they ask. Thanks!

Know about how the statements interact. How debt, issuing shares, depreciation, revenue, tax impacts the statements.

 

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