Technical Skills needed for Interviews
What are the core technical skills needed for BB SA interviews. Also does anyone have any good books where I can learn this information?
Thanks
What are the core technical skills needed for BB SA interviews. Also does anyone have any good books where I can learn this information?
Thanks
Career Resources
You should know the technical questions in the Wall St Prep, Vault, etc. guides like the back of your dick.
TECHNICAL QUESTIONS IN IB INTERVIEW (Originally Posted: 12/23/2010)
Hey guys
can you please help me get clarification on some of the types of technical questions I would be asked at a interview with BB such as JP Morgan, Goldmansachs........
I want to prepare whatever I would need to know, answers to questions you think qill be asked is also appreciated if possible.
Thanks for helping Happy Holidays!
http://www.wallstreetoasis.com/guide/wso-technical-interview-guide
if anything, the difficult of technical questions at bbs tend to be lower. of course, for top groups such as morgan stanley m&a, there are exceptions. when i was looking though, the bbs tended to ask very soft technicals and be more fit based.
smaller firms asked the harder technicals since they don't have the same resources to train employees. hlhz restructuring, greenhill, jefferies leveraged finance, perella weinberg, evercore, lazard and such all gave me some pretty intense grillings.
I don't completely agree with the above post... I had very tough technical interviews at GS, MS and the now defunct Bear Stearns... But yes, the technical guide is a good place to start, along with the search function... c'mon now.
Be prepared to defend your background -- if you are looking for a SA you obviously will not have to know/be expected to know what someone applying for an analyst position.
If you are applying to SA, you should know everything an analyst should. The interviews are nearly identical except for SA, there is a strong focus on what you did in past internships and for FT there is a strong focus on what you did for SA.
MS SA interviews made people people look at the statements of two companies and determine if the merger would be dilutive or not.
Agree with Gekko. Be prepared for everything and anything. What's to lose if you are over prepared? A night or two of sleep? Might as well get used to it now.
Check out http://www.ibankingfaq.com/ I also recommend the technical guide WSO offers.
I think BBs this year got much more technical as they filled most spots and could afford to pry more. My JPM interview was way more technical/difficult than I was expecting. Know IBD basics, know accounting, be able to articulate your internship experiences, and don't take HR lightly.
It will also depend on your background. If you have a decent amount of prior internship experience or if you have an accounting or finance background, you should be prepared for more technical questions and technical questions that are more difficult or, rather, require more knowledge of the field than if you are a liberal arts major for example without much internship experience.
Check out this link for more help on the interview process and technical questions: http://www.bankonbanking.com/bankonbanking-survival-guides/
surprised OP didn't get flamed yet. am i in before flaming?
I-Banking Interview Technical Questions? (Originally Posted: 01/16/2008)
I have an interview on Friday for a lateral hire into I-Banking. Currently, I work at a real estate private equity firm, but in the past, I also worked on corporate valuation. I am looking for some technical question examples that might be asked during the interview. Any help would be much appreciated. Thanks.
you can check out here: http://www.ibankingfaq.com/category/interviewing-technical-questions/
also, there was a long thread on this site a few months back with a lot of good technical questions: http://www.wallstreetoasis.com/node/9841
What is the best way to prepare for technical interview questions for IB? (Originally Posted: 01/23/2014)
I'm a sophomore who wants to do IB next summer. As a person with little financial experience, can someone suggest a comprehensive guide to technical questions? I'm taking economics courses in school and, corporate finance and Accounting courses from Coursera. A lot of these interview guides seem expensive, and if I have to spend money on it, I would like to get the best one possible.
First IB interview - possible technical questions? (Originally Posted: 03/21/2012)
Hi, I got through to my first superday in a few weeks for a SA at a MM bank. I'm a non-finance major with no prior IB internship and I was just wondering what sort of technical questions I might be expected to answer. I've heard that for the smaller firms a lot more of the questions are based on 'fit' but I want to be prepared for any technical stuff they might throw at me. I know I'm not going to be expected to know everything but just a rough guideline of what I might face would help me focus and know what to start working towards.
Cheers.
Some basics:
1) How do you value a company? (answer: DCFs, Comparables, Precedents, and also LBOs) 2) Walk me through a DCF. 3) What would you look for in a stock investment? (is same question as how do you value a company)
Also, know what Comparables, Precedents, and LBOs are. After that a less likely question could have to do with understanding CAPM, knowing the difference between levered and unlevered Beta, and stuff like that.
This is a pretty great summary of the technicals I was asked during recruiting for SA spots this year. I was routinely asked basic accounting questions as well (how are the financial statements connected, how does a $X change in depreciation affect the other statements, etc).
^^these
What's the hierarchy of the cap structure? (more important for product groups) What's cheaper, debt or equity? Why? Sometimes need to know what some recent trading levels were (DJIA, benchmark treasuries, etc..) If you have any sort of investment club EC on your resume expect to get asked about a recent pitch and how you came up with a recommendation. What's the most important financial statement? (no real "correct answer" but most would answer statement of cash flows) More stupid questions but a surprising many would get these wrong: What is IB? What's the role of an analyst? (making sure you actually know what you're applying for and understand the general deal process)
Thanks for the help guys, really appreciate it. Interview is tomorrow and I'm feeling pretty prepared, any last minute tips/pointers that you may have would be greatly appreciated.
Now that you're feeling prepared, just remember - what will actually win you the offer is most likely not mastery of technicals, but your personality and fit in connecting with the interviewer. Screwing up the technicals can hurt, but it'll take more than correct answers to get the internship.
Spend some time reviewing and practicing your "why bank XX," "why IB," and "what makes you stand out as the best candidate" answers. Those are probably the three most important pieces of information that the interviewer will try and get out of you tomorrow.
Good luck!
Almost always asked: walk me through the financial statements and explain how they are connected.
Also, what happens if depreciation increases by X dollars?
Preparing for Technical Questions (Originally Posted: 01/26/2008)
Could anyone provide me with a source (a book, website, etc.) that would give me a jumpstart on how to prepare for technical questions. I'm an econ major who's taken corporate finance, so I don't expect to be hammered with stuff that's too complex. Still, I want to be prepared. Any suggestions?
http://www.ibankingfaq.com/category/interviewing-technical-questions/
Oasis has got some threads for tech questions. Just search around.
so far so good. thanks!
read the vault guide to finance interviews. It is considered by many to be better than the Bible....
is that vault guide directed towards FT IB positions? how much of it should one know when applying for SA?
I've already encountered some stuff in first rounds that aern't covered in the vault guide to finance interviews. So naturally, I'm looking to go beyond that.
You don't understand me entirely when I say read the Vault guide. Read the Vault guide and attempt to understand everything that is going on. For example, you should know what happens when you use levered free cash flow in a DCF analysis. You should figure out why you subtract cash from the EV of a firm. Why do you use an unlevered beta in CAPM? Read everything and ask yourself why they are doing that? Your studies will take you beyond the Vault guide but it is basically all inclusive. I would also agree with iwiibank, just search for interview questions.
Preparation for technical questions in the interview (Originally Posted: 01/12/2013)
Hey guys,
with both joy and horror I have read the stories on WSO. On the one hand I'm terrified, on the other hand I feel extremely attracted by the challenge of working in IB. I think it provides you with precious knowledge and skills that are hard to obtain elsewhere. Thats why I decided to make myself a picture of the industry and apply for a job.
Recently I have had my first interview at a M&A Boutique and I got crushed on the technical side. "What's supposed to be in a pitch book?", detailed explanation of the valuation methods, M&A specific questions. It was painful (pic related).
Even though I fucked up quite bad, I got the invitation for a second interview. I'm very thankful for the chance and do not want to miss this opportunity.
Can you recommend books or other information material that would help me to be prepared on the technical side? I have 11 days. Thank you very much in advance.
Just buy one of the IB interview guides and memorize the whole thing. I used the BIWS guide and found it very helpful during recruiting.
buy the book Investment Banking, Valuation, LBO, M&A by joshua rosenbaum. It basically gives you a detailed step of how to do Comps, Precedent transaction, DCF, M&A and LBO in an easy to read and follow way, I found it very helpful. (MD suggested I read it to prepare myself for interviews)
use both resources mentioned above and you'll be in very good shape.
good luck.
Definitely use the WSO Technical Interview Guide. It was really helpful during my interview process.
Absolutely any interview guide is going to be good enough. We're loading up interview Q&A for free as we speak so ask away but since we're on WSO here's your answer to what's in a pitchbook so everyone can read it.
"In a pitchbook there are generally 3-5 sections. In a larger pitch for an M&A transaction for example it would be organized as follows 1) Overview of firm with credentials/tombstones 2) Industry analysis (why the firm is going to grow in the future), 3) Dive into company specific information of firm you want to sell 4) Valuation accretion dilution/merger combined model to explain why transaction would work 5) Comps/precedents and other simple valuations in the back [note: biographies may show up here as well]."
There ya go good luck.
Thank you very much for your help. I'll keep you updated
bad
Are you from a target?
Best Technical Interview Prep Material (Originally Posted: 02/03/2013)
Hi,
There's a mountain of technical interview prep material out there. For the uninitiated (and the career switch w/o a background in finance/business), what's the best material to cover given a restricted time frame?
Thanks, John
I'm assuming that you're asking about investment banking? I'd recommend 3 resources and I'd limit it to these three in the beginning because tackling a number of books/prep guides will be confusing. Stick to a few resources and spend time learning them. 1. Use the WSO Prep/Technicals Guide (similar to the Vault w/ out a ton of extra bullshit) 2. Read Investment Banking by Pearl/Rosenbaum 3. Read the WSJ / Dealbook on a daily basis. Investment Banking, the book, will give you a good overview of the industry and then also hold-your-hand through the technical aspects at a high level. WSO Prep/Technicals will prepare your specifically for answering technical questions in an interview. These resources will work well together b/c Pearl/Rosenbaum may walk you through modeling the DCF, but the WSO tech. guide will show you how to assemble a quick/punchy response in an interview for the DCF. When an interviewer wants to dig a little deeper beyond your quick answer, Pearl/Rosenbaum will give you a little depth, but if they don't then the tech. answer come of nice and neat. WSJ/Dealbook will give you a feel for the 'goings on' and real world shit to talk about. Hope this helps.
Agree with the earlier reply. I started with Pearl & Rosenbaum, reading 10 pages per day, spending about 2 hours per day to get it down really well. Then I went through the M&I study guide technicals. Then I worked on my behavioral stuff. It is really just a matter of planning, putting in the time.
I recommend starting with ibankingfaq.com. Although it is basic, I think it's a great place to start as it focuses only on the essential parts. Once you have a vague idea of what the answers are, you can move onto Rosenbaum or WSO to make it more intuitive, then to M&I for more advanced materials.
I really liked the WSO one over the Vault. Then I used M&I 200 questions after I had some understanding. I have rosenbaum, but I haven't gotten a chance to dive into that yet.
Sounds like you've already done some preps. Rosenbaum would be a good read, although I only skimmed through it once and never had any problems with technical questions during the interviews. What I found really helpful was setting up mock interviews with people in the industry and asking them for difficult questions, because those are the ones you can never find in any guides. With that said, once you know the basics, you don't necessarily have to learn more; you just practice utilizing what you already know in order to answer the "creative" questions. What I'm trying to say is that you don't have to know every nitpicky detail in the Rosenbaum book. Just try to look at the big picture and understand intuitively. (Maybe someone will disagree...)
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