11 Comments
 

Modeling test is a straightforward 3-statement template, not from scratch. Given 90 minutes (I think?) to complete. Should be a breeze if you have adequate modeling skills, if none I would practice practice practice.

Though I'm sure you're doing that anyway ...

Disclaimer: this intel is from 3-5 years ago.

Good luck and may Ken smile down upon you.

Maximum effort.
 

Thank you - can you give me some more insight into the technicals? Anything I should particularly focus on?

 
Most Helpful

Standard technicals about LBOs, acc/dil, etc. are all fair game. But once you get past those, they will likely try to get a sense of your instincts/institutional knowledge.

They might ask you (generally): how you think about valuing a business, why a company could be valued more than another, describe something interesting you've learned/witnessed in your current role, etc.

An example: I have a ball bearing manufacturer with ~25% margins. How do I value it? The correct answer involves asking qualifying questions (growth, capex, size, comps, level of M&A activity in the space, etc.) but after all they they might just ask "what do you think?" If you have had a good experience in your first 2 years of banking, you can hopefully provide an educated guess.

(Answer: 8-10x, but that doesn't tell you much with the info I've given you)

Maximum effort.
 

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