Month of Interview:
August
Industry Detail:
Investment Banking
How long did the interview process last?:
1-2 months
Student / Prospective Monkey
Group/Division/Type:
Mergers and Acquisitions
What did the interview consist of?:
1 on 1 Interview
Skills Test
Background Check
How did you get the interview?:
Employee Referral
What were the most difficult or unexpected interview questions asked?:
I was asked more detailed questions regarding a discounted cash flow analysis such as whether the terminal value or projected period had a greater impact on valuation. Was also asked how lengthening the days outstanding terms on accounts payable would impact a DCF. Lots of questions centered on a DCF and the concept of free cash flow. Other than that, it was the expected accounting questions regarding the three statements and how they link together. Also had the expected personality questions such as why banking/why this firm.
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Overall, how would you describe your interview experience?:
Very Positive
Please describe the interview / hiring process.:
Networked with the firm and that got me into the interview process. Initial step was a 1 hour written essay on values. Next step was a 1 hour basic modeling test. Finally, a superday of 4 30-minute rounds followed by lunch with analysts.
Overall, how difficult was the interview?:
Difficult
Official Undergrad School Name:
Overall Undergrad GPA:
3.9
Undergrad Class Year (or expected):
2021
Degree 1:
AB or BA
Major 1:
Finance
Varsity Athlete:
Yes
Millitary Program (ie. ROTC):
No
Race:
White
Sex:
Male
Outcome of Interview:
Accepted Offer
Year of Interview:
2019
How did you answer each of these questions (please be specific)?:
The question about terminal period vs projection period in a DCF tricked me up a bit but I just walked through my thought process a lot. I elaborated on how the projections are made and also explained the difference between exit multiples method and Gordon growth method. I essentially said both would be important and I was guided along as to why a terminal value has more weight. With the accounts payable terms lengthening, I mentioned that a firm would have more days to pay off accounts and would thus have more cash on hand, increasing working capital. I started to lose track but said more cash flow would increase the value in a DCF before they guided me to a proper way to approach it. Other questions were pretty basic/personal and I emphasized how great the culture was.
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