Start studying Investment Banking Interview Questions. You still need a great story, you still need to know why you want to do investment banking, and you still need to know what it’s like being an investment banker. I’d reach out to people in FSG and ask them for help…, See: https://www.mergersandinquisitions.com/financial-sponsors-group-fsg/. Do Investment Bankers go into Hedge Funds (and what are their roles and opportunities) ? I’m assuming most FIGs are based in New York, but are there any that are housed elsewhere? In US, perhaps SF and Texas? You will surely receive technical questions … Definitely doesn’t sound like the place for college grads to start their careers. So its market value will be much different from its book value. If you don’t like it, you can leave in another 1-2 years without limiting your exit opportunities too much. Thanks for the article. I would like to move to corporate strategy positions (hopefully in the entertainment or tech industries). BIWS Real Estate & REIT Modeling gives you a crash course with case studies on real estate developments, acquisitions, pre-sold condos, REIT valuation and M&A/LBO modeling, and more. ... Continue Reading about ING Cover Letter – Investment Banking M&A FIG … I think if I started coming up with specific reasons to join non-FIG industry teams, I would lose my authenticity. If you’re in the financial institutions groups (FIG), however, you have a much better story in terms of getting into strategy / corporate development roles at financial institutions. Yes they’re free (at least some are). No. analyzing FI companies, and how its different from other industries. I can’t seem to find any info on this firm, have you ever heard of it and how do you recommend I prepare for the interview? I understand what you’re saying but was just questioning the logic of the industry – would make more sense for an experienced banker to join KKR and actually be valuable. There is actually very little on interview psychology out there and I feel general interviews are already well-covered by the articles on this site and the interview guide. Will it give me a wider set of opportunities after I graduate (compared to being an associate without an MBA degree)? Or does it depend on my interviewer and what group he/she is in? I thought I was fairly well aware of what was out there on the net for free but this is great!! Let me ask one “career path type” question: suppose that I apply to a full-time MBA program 2-3 years after I am promoted to an IBD associate from an analyst. So both positions are entry level. Re moving to IB, I’d suggest you to attend industry events, organizations & network lots w bankers. Please refer to our full. I actually met him in person and he really knows what he is talking about. I do think that FIG can be more technical than other groups, especially in areas like insurance, so that can make it worse. So should I accept the offer? The retention of clients through strong customer service and a track record for solid returns is crucial. – Can I stay 1-2 years at this Fintech M&A boutique and then move to like Moelis or Evercore or something like that? And now you’ve lined up 10 first round interviews, most of which are for the M&A and generalist pools. Hey, nice article! I think you may want to choose 1-2 FI you’ve been following, and be able to talk about it. We respect your privacy. Because the amount of money a bank or insurance firm can earn is linked nearly 100% to its Balance Sheet – how much it’s earning on its Assets, and how much it’s spending on its funding sources (Liabilities & Equity). When should I email and How best can I word it? So, London will be the first choice. Long time reader of this great website! So much business in places like London and New York depends on financial firms that understanding them in-depth and having contacts there can make a big difference in almost any field – if you start your own company one day in one of those cities, guess who your main customers might be? Hah, good one. Its just for 20 mins. You’ll find conflicting reports on technical questions for specific industry groups: some interviewees claim that they’re uncommon, while others (especially in Canadian mining groups) claim that interviews can be extremely technical. Thanks! This approach is the more academically respected approach. Industry-specific interviews require you to shift your answers rather than come up with completely new ones. I am looking at your completed XTO excel model and found you did not use historical expense/mcfe to project production expense in 2010. For instance at my BB, its not considered an “ok” thing to talk about exit options hence I cant bring up the reason that I would like to leave FIG because of limited exit opps. To learn more about these metrics, please see our tutorial on ROIC vs ROE and ROE vs ROA. Granted, it’s not as detailed as Deal Journal. Fantastic Post! I am talking with some other coverage teams next weeks, and want to get my story straight. Apply now. Financial institutions groups can also make money by borrowing money at lower rates … I really appreciate it and please post more articles like this. D A Davidson Companies Atlanta, GA. I went for the opportunity and won the offer (starting in September as well). Look up specific companies on sites like TechCrunch and find a few that you’re really interested in, and then discuss those along with broader industry trends. Talk about what fascinates you re. If you can’t find relevant metrics, just get the purchase price for the deal and get the financial metrics yourself by looking at the acquired company’s annual report on their investor relations site. Are you truly passionate about the sector? If you haven’t been working for half a year, I would recommend just accepting this role. Some people say being in FIG is a handicap for private equity recruiting, which is true to some extent. It will have been about a month by the time I interview again. My reasoning(perhaps flawed) is this – as a BA and then as an Associate, you would do heaps of deals (hopefully) at a BB Investment Bank and would really learn modelling, client relationship building (more so as an Associate *although this is more at the Exec Director level*) and learning how to do deals…by joining a PE firm after 2 years as a BA, you don’t have that much deal experience…PE firms don’t do near as much deals as IB’s advise on so your knowledge and the expertise you could offer the PE firm is limited…hence your development is limited…what about joining after 5-10 years experience ? Important to note because lots of people assume that other positions are dramatically different but you’re still doing a lot of the same work in banking/PE etc. Example for FIG: “Financial services are the biggest industry on the S&P 500, so it’s a huge market in the US – it is relatively mature, though there are pockets of growth in some areas such as risk management. Really helpful. This website and our partners set cookies on your computer to improve our site and the ads you see. Muller Bastian. Thanks! Here’s a brief overview of the business models in each of these sub-industries: Q: OK, so those are a lot of areas and they all sound pretty different in terms of business models. Most of the information is right there: Intel, the huge semiconductor company, was the buyer, McAfee, a security software company, was the seller. For more specific forms of insurance, you might even see something on changes and trends in social attitudes (e.g. If you don’t have something specific in your background, you could always talk about industry news or recent deal activity making you more interested. Thus, I thought about the following: Accepting the offer and work there for a year while delaying my master for a year and then quitting the job next summer and going for the master. In terms of other numbers, metrics such as Return on Equity (ROE) and Return on Assets (ROA) are quite important for both commercial banks and insurance firms because you only use Equity Value with them, and Net Income is crucial since it includes their full Net Interest Income. For example, one company earns $100 million in sales and the total market size is $1 billion so it has 10% market share. If you have too many connections but not enough depth, you can easily get placed into a group you didn’t even list as one of your choices. Paid Job. You cannot arrive at the table with a “clean slate” when you go in for a FIG interview. Found them very helpful for quick intros into the industry and more importantly what transitions the industry is going through and what challenges. It’ll be more fun there…. Usually they only give you the interviewer names right before the interview, but that varies by bank. Financial Institutions Group (FIG) is a group of professionals that provide advisory services to financial institutions. A couple huge banks, such as BNP Paribas, RBS, Barclays, Deutsche Bank, and JP Morgan, operate in all these segments, while there are also more specialized firms like Goldman Sachs that may focus on just one or only a few of these segments.”. And how can you get up to speed on all the accounting and valuation differences, recent deals, and everything else if you only have a few days – or a few hours – to prepare? No one outside the group understands what’s going on. Most people do not do that because you do not need an MBA if you have already been promoted. You thought that was the right time to get your masters (right after graduation). 1 Deutsche Bank FIG Intern interview questions and 1 interview reviews. This is one of the most commonly asked investment banking interview questions. Investment banking, debt restructuring, and raising capital are among the services offered to FIG clients. Discuss risks that you have taken if your life? Just say that you were interested in learning more about world policy and economics and you’ve always wanted to get a masters. You could also talk about being interested in promising but controversial technologies like hydraulic fracturing and how quickly the industry is changing due to rising energy demand in emerging markets. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity. So how will it be different? Learn vocabulary, terms, and more with flashcards, games, and other study tools. So if you can’t find analysis of a deal in the WSJ, find equity research on the buyer or seller just after the deal was announced and look up the multiples, numbers, and rationale there. http://www.nasdaq.com/symbol/bud/guru-analysis http://www.nasdaq.com/symbol/cpla/guru-analysis. Additional Questions Answered In Order Received. Tips: Talking about why the Banking Sector is the fastest growing sector can help impress the selectors.Therefore, have some facts and figures ready as to why Banking is the fastest growing sector. At a bank, you might interview specifically for one of the product groups, or you might interview for one of the industry groups – or you might just interview for a “generalist” position, be placed in the generalist pool, and then select your group later on. I was invited back for a superday interview two weeks from today. Once you’ve established this spark, give 1-2 solid reasons why you want to work in the group after someone or something made you interested. Questions To Ask In An Investment Banking Interview. Would you say it is more common/plausible for FIG bankers to come from corporate finance or corporate development backgrounds? And I am confident that I can follow hierarchy and get along well with possibly younger Director, etc. Best regards, Nick. How do you think the commercial banking background helps me to apply for top MBA ? I’m getting “error establishing database connection”. Please refer to our full. Hard to say – everyone likes to think they have the longest hours. So if you’re assuming that they issue a certain percentage of net income as dividends each year, their capital levels must remain above the minimum percentages even after they issue those dividends. the economies of scale poses a risk to exchanges. The FIG Partners Investment Banking team prides itself on embracing the vision of our clients. But there are important differences when you interview with specific industry groups – so let’s get started with the festivities. The second case study covers KeyCorp's $4.1 billion acquisition of First Niagara and how bank … Some of the top leadership on Wall Street today actually had some background in the sector – for example, Morgan Stanley CFO Ruth Porat was originally a tech banker who then worked in financial sponsors / financial institutions. I didn’t move to IBD quick enough and couldn’t do MBA earlier because of my personal matters. Q: How does that matching process work? You’ve applied to over 100 banks, networked with 230 bankers, and have been pounding the pavement since August. This was a great post and very informative but I have a question titled towards exiting FIG. 3. Amazing coverage on FIG. But, I’ll see if any other topics lend themselves to this. Since the first round went very well, I think it’s fine to email and call him once. M&A deals are the best ones to discuss and the easiest to find information on, so here’s the structure you should use: You can find all this information on the WSJ Deal Blog – they do all the work for you with their “Deal Profile” reports that give the relevant financial stats and multiples. Do not give answers like, ‘I want a stable career’ or ‘I want white collar job’, as these things may invite cross questions … FIG at my current BB is very modeling and M&A intensive, whereas the Lev Fin team was a Capital Markets group. Valuation is completely different – in some sectors. They don’t expect you to know everything walking into the interview, but they do expect you to be enthusiastic and a fast learner. Gerry Bond. By nature, I am very conservative and don’t like to take … Thanks! Now I’m going to save you 10 hours of time spent frantically searching online by sharing these resources: Yes, you read that correctly: Big 4 firms like PwC and Deloitte regularly publish industry and M&A research for free. It sounds like you learn about the broader trends in the economy, but do you also get broader exit opportunities? I was wondering what backgrounds are common amongst FIG bankers who do not break in to banking right out of undergrad? What are the differences with them valuation wise? I would try to keep things as simple and easy as possible so that he or she would feel it would be the best investment of their time and money. Successful Investment Banking Cover Letter Sample and Investment Banking Interview Questions Contributed by Professionals at over 80 companies. Is it based on sell days or just your preferences? Sherry Xue. Market Cap of firm i/Total Industry Market Cap=Market share of firm i ? You might want to demonstrate your passion in tech in your interviews. Thank you so much for any advice. Not offhand – we hope to cover this area soon, though. Investment Banking Analyst Fig And Diversified Financials. Q: Wow, thanks for all of these tips. I am currently applying for Oil & Gas IB analyst positions (off-cycle), and I completed the Oil & Gas course for ExxonMobil XTO to be ready for the technical questions. I’ll definitely keep the M&A research links in mind. Q: That’s interesting to see a more even split compared to other sectors. Like the industry and M&A research reports above? Do you have any resources I can look at to understand the industry as a whole (not necessarily from a technical aspect)? 1. I used Deal Profile a lot in the past but the deals are mainly US ones. With the BB name on my CV I would then try to apply during my master to other teams (such as energy) in other BBs. Does anybody know of an equivalent to the above mentioned “Financial Institutions, Markets, and Money” for the European Financial Institutions Market? 2. A few weeks ago, a friend who works for a BB in London offered me to join a quick, informal interview process for a full time position in a FIG team. Summary slide of a deck) is VITAL for PE interviews… only thing I’d add (if/when you interview for PE shops) is knowing and understanding the financing/cap structure, if applicable. Free Exclusive Report: 57-page guide with the action plan you need to break into investment banking - how to tell your story, network, craft a winning resume, and dominate your interviews. He switched careers after going to grad school. Not necessarily. You are definitely more specialized, and that can limit PE opportunities – but you’re also in a much better position for funds that invest in financial institutions. Please refer to https://www.mergersandinquisitions.com/investment-banking-informational-interviews/ and scroll down to “Questions to Ask and Questions Not to Ask”. If you cannot build a 3-statement LBO model easily, stay away because these are both more complex than even the Advanced Modeling course. Q: I see, so it sounds like a tweak to the traditional DCF where you can just make the assumptions you want to make, within reason. Thanks very much in advance! So… it’s possible, but I almost think it’s easier to move to a bulge bracket due to higher turnover, more spots, etc. What if I can’t find any general opinion of the street about a deal? Q: Interesting to note all that. If this kind of technical knowledge isn’t interesting now, I guess investment banking be for me and I won’t have to tell a story that isn’t very genuine about how I’m interested in finance. 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