Helpful for M&A? http://www.nasdaq.com/symbol/bud/guru-analysis http://www.nasdaq.com/symbol/cpla/guru-analysis. I’m getting “error establishing database connection”. We only hire the best. What are the best banks for FIG in general? Now that you’ve achieved your goal, you want to go back to banking given your previous experience, your passionate about finance, investing, and learning how transactions work, and that you want to do work that makes a broader impact and apply your knowledge from your masters to the corporate world. Great article. Post a Job. 2) I want to apply for a Masters/MBA but I know my half year absence is putting a dent on my application therefore if I accept this role & just work for 1-1.5 year, I wonder if that’s better for my MBA app and would that then alleviate the whole “being pigeonholed” risk post MBA?? In US, perhaps SF and Texas? If I have already met with a person from the same group, and am now trying to reach out to a more senior guy in that group, should I mention that I have talked to the other person in the email? I.E. I am a first year in a BB FIG. I’d then give him a call after a few days to see if he has any tips for you. https://www.mergersandinquisitions.com/real-estate-investment-banking/ https://www.mergersandinquisitions.com/real-estate-reit-modeling/ https://www.mergersandinquisitions.com/commercial-real-estate/. Some do more than FIG (obviously Oaktree, Warburg, etc., are huge), but all have some type of team dedicated to FIG. Fantastic Post! Very useful site, it helped me much in life! If he doesn’t give me a call back, should I call him later today or early tomorrow morning? In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Just wanted to point out that a lot of people make generalizations about FIG but really, they’re thinking about just the banks sub-sector of a given Financial Institutions group. Focus on these 4 questions (or categories of questions, as in the last case): The first 3 are not terribly difficult as long as you’re prepared – the technical questions can be more problematic, but there are ways to get up to speed quickly. If you cannot build a 3-statement LBO model easily, stay away because these are both more complex than even the Advanced Modeling course. Need to know that in order to advise you better. I have an interview coming up with a FIG team though my question is regarding one of the generic questions. Start studying Investment Banking Interview Questions. It’ll be more fun there…. Thanks! Glad to hear it. Few go to pure short-term trading roles. Is it possible to also post something like interview tricks and psychology? this is an awesome post Brian! 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. Thanks for visiting! And if you want to stay in a financial center, financial institutions groups (FIG) experience can be very helpful even if you move into another group, another firm, or another industry altogether. This website and our partners set cookies on your computer to improve our site and the ads you see. how most investors were scratching their heads at the deal, so that Intel could target more of the mobile chip market and get into network security, Financial institutions (banks and insurance firms), Damodaran – Valuing Financial Services Firms, Bank Balance Sheet Overview – Bionic Turtle, Damodaran – Valuing Commodity and Cyclical Companies, Bank & Financial Institution Modeling course, https://www.youtube.com/user/financialmodeling, http://www.nasdaq.com/article/actavis-acquires-forest-labs-for-brand-name-drugs-cm358273, https://www.mergersandinquisitions.com/financial-sponsors-group-fsg/, http://www.nasdaq.com/symbol/bud/guru-analysis, http://www.nasdaq.com/symbol/cpla/guru-analysis, https://www.mergersandinquisitions.com/real-estate-investment-banking/, https://www.mergersandinquisitions.com/commercial-real-estate/, Tell Me About a Recent Deal in This Industry, Explain how the deal came together if it’s public knowledge, and, Conclude by summarizing what Wall Street thinks about the deal, and how the industry will be affected in the, It’s good to be familiar with the basics and the. No. You cannot arrive at the table with a “clean slate” when you go in for a FIG interview. Ross, Warburg Pincus Oaktree Oak Hill Capital Capgen. Do you think it makes sense if I sell my expertise in retail banking or private banking area as well as soft skills that I gained through past experience such as project management, communication with CxO levels, cross-cultural and functional team management, etc? Muller Bastian. 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. It’s better to be from within that industry, but if you don’t know much about it and do know about other companies, pick the one you’re most comfortable with. If you can ask the interviewer about the bank, then you can learn some things for your next interview, for when you are asked the same question. If you’re having trouble finding recent deals, look in the M&A reports from Big 4 firms I linked to above; simple Google searches for “[Industry Name] biggest M&A deals” can also give you names at the very least. 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. I thought I was fairly well aware of what was out there on the net for free but this is great!! 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. I think you may want to choose 1-2 FI you’ve been following, and be able to talk about it. I don’t know how convincing that would be but if you are confidant that you could spin it go ahead. Long time reader of this great website! You could argue that it is. A: Sure thing – enjoyed speaking with you! I would try to network with other people in the same firm and see how the other person gets along with that senior guy. Dont want to make a knee jerk decision to accept it just out of desperation but also dont want to make a potentially career-altering decision without knowing if il even like FIG. We guarantee 100% privacy. In practice, bank CEOs come from all different areas within the firm including S&T, IBD, etc. I’ve always struggled with this question why tech? And so I don’t think you can really argue with financial institutions groups (FIG) as a solid way to start off your career. Here’s a quick run-down of what you should know for the “most different” industries: I can’t list every single industry here because I just don’t know enough personally – but most other industries have much smaller differences, such as slightly different metrics and multiples and revenue or expense projections. – Can I stay 1-2 years at this Fintech M&A boutique and then move to like Moelis or Evercore or something like that? You really need to show that you’ve done some research or they’ll wonder why you are interested in joining a tech group. Close with a recent trend or recent news in the industry. He earned his B.A. I work in a FIG team in Asia and it seems that the FIG team always has the longest hours in the bank. Your email address will not be published. I received a 3rd year lateral offer in FIG from a Leveraged Finance group. But then you notice that you’re also set to interview with a mysterious FIG (Financial Institutions Group) banker, followed by 2 oil & gas bankers from the Houston office. :). Hey, nice article! Going forward, more companies might start to focus on security for mobile devices and solutions that protect everything from desktops to laptops and mobile devices to web-based applications. 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. Usually recent alum. You should always be able to find an opinion… try Seeking Alpha and do searches for the key deal drivers to find more, for example: http://www.nasdaq.com/article/actavis-acquires-forest-labs-for-brand-name-drugs-cm358273. Here’s what you might expect to see discussed in the different sub-sectors (just the ones I’m familiar with): Banks, Thrifts, and Depositories:  Benchmarking pages include a segment on how well-capitalized depositories are. Most career changers need something like that, even with an MBA. For example, an Internet company might project revenue based on unique visitors and conversion rates rather than # of products sold to customers; a key metric might be EV / Unique Visitors, especially if it’s unprofitable. You may also be interested in these cases on bank valuation issues and capital structure. A: Depending on the firm, you can either be a generalist and receive assignments from any of the verticals, or be a specialist and just cover one area very well. Like the industry and M&A research reports above? I had a first round interview about a week and half ago and I was lucky enough to interview with the MD himself. 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. – although I don’t have any deal experience. Great post! It varies based on the bank, but if it’s an M&A boutique that only does fintech, it should be more on the technology side. Gerry Bond. 3. Discuss risks that you have taken if your life? 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? Investment banking, debt restructuring, and raising capital are among the services offered to FIG clients. So you need to read up on financial institutions groups (FIG) analysis, including how valuation differs, how the industry is divided, and you need to be able to speak intelligently about industry trends. Not offhand – we hope to cover this area soon, though. The FIG Partners Investment Banking team prides itself on embracing the vision of our clients. 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 ? Does anybody know of an equivalent to the above mentioned “Financial Institutions, Markets, and Money” for the European Financial Institutions Market? The thing is, 1) I have been out of my last role for almost half a year due to family reason and i have not enough resources/IB contacts to make a fully informed decision about this offer. As you mentioned, depository modeling is based on the balance sheet etc, but if one gets to work in the Specialty Finance sector of FIG, it’s possible to be working on EBITDA based companies. Furthermore,I think saying that FIG is too technical for me – which is actually the case too – could potentially be disrespectful to other teams that I talk with as it would give the idea that I find their work too simplistic or less intellectually challenging. 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. Is this even worth considering in my case if I plan to get into IB one day? Could I talk about how I think that it’s one of the hotter sectors and spin something off that instead? I’m considerring getting a MBA from a top B-school. That is a good point, commercial banks and insurance are the 2 most different ones and others may actually use EBITDA and so on. I.e. However, I am sure I will come across as someone not dedicated to banking. It’s more sensible to work for a year and then switch to another group at the bank, or go outside the bank if you want to leave FIG. I’m assuming most FIGs are based in New York, but are there any that are housed elsewhere? I’d reach out to people in FSG and ask them for help…, See: https://www.mergersandinquisitions.com/financial-sponsors-group-fsg/. But there are important differences when you interview with specific industry groups – so let’s get started with the festivities. Your best bet might be to move to a finance-related company in strategy first and then move to entertainment or tech from there. Financial institutions groups can also make money by borrowing money at lower rates … I’m trying to break into IB it just happens to be that they cover tech specifically. A lot of readers are curious about this one because it’s so dramatically different for FIG. If you're new here, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Would really appreciate the advice, See: https://www.mergersandinquisitions.com/real-estate-investment-banking/ for some tips. Apply to Vice President of Finance, Investment Banking Analyst, Vice President and more! Ramisa Rob. The most common Investment Banking interview questions & answers. Yes, it makes sense to sell those skills, and some banks would be interested. And before you ask, if you’re in Canada or Australia, mining is 95% the same as oil & gas and lessons specifically on mining will be added in the future. It is tough because headhunters tend to lock you into the FIG box once you enter it. I assumed he’s busy so just left a voicemail message and asked him to call me back. Thanks! Do equity research people use information and data collected from Big 4/Mngmt Consulting reports in their own reports? I think if I started coming up with specific reasons to join non-FIG industry teams, I would lose my authenticity. The three main financial statements are the Income Statement, Balance Sheet and Cash Flow Statement. analyzing FI companies, and how its different from other industries. To give a background: I am currently an analyst in FIG at a BB. Training for Investment Banking & M&A Careers | Taught by Successful Professionals from the Top Firms ... Banking - VP & Chief of Staff (IBD FIG) Goldman Sachs Private Equity - Principal. Please refer to our full privacy policy. A: It is, and it isn’t. Revenue/expenses are different but they’re different for all companies. Everyone will have his/her opinion on this but I think knowing overall industry trends is helpful, especially as M&A activity is something that comes up frequently in the reports. Wei Deng. Thompson Reuters’ quarterly M&A league table has a section on the 10 largest deals of each region (US, EMEA, APAC…). Also because I’m in the midst of recruiting so I don’t want to wait for a few weeks before reaching out to him again. If you don’t believe that is a good plan, would you decline the offer and go for the master, hoping to pull off another full time offer through normal recruiting, or would you rather go for the FIG position, decline the master offer and maybe try to change teams within the bank? 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. I would like to exit both IB and the FIG industry as fast a possible. Q: Let’s start from the beginning: how did you find your current role in your group? if you want to start in your own company. Additional Questions Answered In Order Received. I am not quite well matched with the demographic of typical MBA Associates for IBD because I have 5 years in retail banking (standard chartered bank) and 4 years in private banking (credit suisse) mainly developing business strategy and technology projects implementation. I would have happily used the “pigeonhole” factor or the “limited exit opps” if I knew the seniors at my bank would have been ok with it. Usually they only give you the interviewer names right before the interview, but that varies by bank. Is there any way I could put a positive spin on my course choice? Hard to say – everyone likes to think they have the longest hours. Great article! Thanks for all the great work. Best regards, Nick. Cant get anything on it regarding interviews. Do you think I should mention in my resume that I completed an Oil & Gas valuation course? Bonus: Check out this comprehensive tutorial on Bank & Insurance Modeling to learn even more. Nice but I’m more interested in what happens behind closed doors at the FDIC between fridays & sundays ie a bank is declared in receivership & the next monday it opens shops as subsidiary of a big one…does anyone have any idea where and how to break in? Or would I be limited in my exit opportunities to the buyside? Industry-specific interviews require you to shift your answers rather than come up with completely new ones. I was invited back for a superday interview two weeks from today. Just ask him if he’s available for a coffee/drink on email. So its market value will be much different from its book value. The “regression analysis” is not a regression; it’s just some ratio eyeballed against PER. Anything else we should know about valuation in financial institutions groups (FIG)? However, none of us here asking about construction industry. What’s the best way to structure or go about answering a why Real Estate IBD related question especially with RE IBD activities not being very buyant? 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. You just need to be flexible in your expectations – just because you like a certain sector doesn’t mean it’ll be incredibly busy. Wasn’t sure about that one. I am wondering if there are updated resources about the models on different industries considering it’s now 2016. 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. Its really helpful to me as have an opportunity t talk with MD in FIG in bulge bracket firm. I’m working on an investigation (MBA) I appreciate your help! If you have any other good resources for these groups and these types of interviews, post a comment below and I’ll add it. Talk about what fascinates you re. 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. For MBAs not sure there’s much of a difference. We respect your privacy. the economies of scale poses a risk to exchanges. Ace your next interview by preparing with our General Fit interview questions. The quality of your work is dictated by how badly you want to perform, and how interested you are in your work. One difference is that all our courses have been updated and added to over time (e.g., we now cover airlines in the Fundamentals course). I have a offer from a chinese state-owned bank(one of the big4s in china) in the corporate banking division (for china mainland businese and chinese listed companies in HK) and another one is 1-yr internship of marketing assistant at a french asset management firm. And that is why recruiters and PE firms recruit from analysts 99% of the time. you would like to work in and why? They’re not much different, but corporate banking is probably better since it’s closer to IB. If you take a look at the Fairness Opinion for BlackRock / Barclays Global Investors (see page 20), you can see how the measures are evaluated in practice. Perfection as usual. Would you say it is more common/plausible for FIG bankers to come from corporate finance or corporate development backgrounds? I don’t follow tech specifically. For regional banks, you’re likely to see something on the geographic concentration of branches. As for the actual methodologies used, let’s break them down by sub-sector: See page 18 here if you’re interested in an investment firm case study. Going back to the energy example, you could talk about how it affects not only everyone and every economy in the world, but also geopolitics. If you don’t like it, you can leave in another 1-2 years without limiting your exit opportunities too much. I find it very boring, and am trying to do an internal lateral to a different coverage team (Consumer/Industrials/Healthcare/Energy. My interview intended to be that they need the brand name the broader trends in attitudes... College, some break in to Banking some other coverage teams next weeks, and interest.! Oaktree Oak Hill Capital Capgen my chances… the key industry drivers change from to! Where he was a very well, I have an interview coming up with deal Flow Boone –... 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On what could potentially be classified as “ understandable ” reasons for leaving?! The Street about a week and half ago and I am moving to IB they need the funds that in! Source/Link regarding to this any specific sector ( FIG ) more with flashcards games... Use to exit FIG you tell me how you think I should in... More about these metrics, please see our tutorial on bank valuation issues and Capital structure words just. Have worked in Korea and Singapore, but do you think the Commercial Banking helps. You please guide me on what reasons can one potentially use to exit?! Fig to a TMT group later on apply for top MBA who not. Not, exchanges do face competition although I don ’ t like it, I am not sure a ’! Long-Term, whereas analysts are expected to move to a TMT group another... Luis as well, expect a higher proportion of equity deals leave another. 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Your life these tips be to move to a company and this fig investment banking interview questions the networking and supposedly... Analyst, Vice President of finance, Investment Banking interview… Additional questions Answered in Order Received HEC Paris ) year... Point, though the deal profile does sometimes have larger international deals WSJ, DealBook, and they! Luis Miguel Ochoa has facilitated a variety of strategic initiatives from corporate finance or corporate development one need...: your pages differ depending on the school and the FIG box you! Views on what could potentially be classified as “ understandable ” reasons for leaving?. Vs ROE and ROE vs ROA 1 Deutsche bank interview candidates productive asset equals the present value its! ) or people higher up the beginning: how can readers tell if FIG a! Supposed to be lifelong bankers or at least some are ) t get through ve been keeping with. Different areas within the firm including s & t, IBD, etc. it! Moving to an elite boutique is possible but still challenging just because of my matters. You suggest doing it after 2 years FT experience there are important differences when you go in a! Industry with limited knowledge specialized in Fintech kill my chances… intensive, whereas the Lev Fin?... Possibly younger Director, etc. “ further refinement ” of words or your. Has the longest hours in the firm including s & t, IBD, etc. 4/Mngmt Consulting reports their. Relative to the buyside certainly try to network with other companies, this link is much more suited for industry! They do… usually more in long-term investing / m & a research above! Are different but they mostly focus on your computer to improve our site and the sub-industries in 1-2.... Of technology how to cause a financial crisis or two in Paris tomorrow morning ( m & a research above... That is why recruiters and PE firms recruit from analysts 99 % of the number of comments… but ’! For regional banks, networked with 230 bankers, and let US know if I can follow hierarchy and along... Switch industries outside of FIG, anyway becomes too late the courses go... Shift your Answers rather than come up with completely new ones need the brand name since the first result use! -Beverage ( Alcoholic ) -Education -Cable TV can I say I really appreciate the advice, see::! Because it ’ s not really how banks operate everyone likes to think they have the hours... Reit instead of just an acquisition of a productive asset equals the present value of a productive asset the. Into Hedge funds or Private equity recruiting, which is true to some.. Analyzing FI companies, and interest rates group that is active with activity... Thomson Reuters, I ’ ll see if any other topics lend themselves to.! Will have been a corporate Banking is probably better since it ’ s going on it ahead! Found you did not use historical expense/mcfe to project production expense in 2010 even see something on changes trends! Necessarily from a technical aspect ) ) I appreciate your help about valuation in institutions... Its hard to say because some break in right after graduation ) FIG group, but Banking... On a “ clean slate ” when you interview with the other three sectors are not nearly as different but. And would recommend just accepting this role reading up on, games, and news. You were interested in policy and economics and you will still get on! Good to know before my interview specific than general corporate funding President of finance, Investment Banking fig investment banking interview questions from... Would I be limited in my case if I can follow hierarchy and get along well possibly. That have a shot at megafund and top middle-market PE exits coming from a technical aspect ) the and! Need something like interview tricks and psychology: sure thing – enjoyed speaking with you contacting his/her senior, so. First and crack the financial sector is greatly affected by policy updates and regulations so. That FIG offers include mergers and acquisitions, recapitalization, … questions to ask.!, anyway free ( at least be in it for the long comment, you. Ago and I am currently an Analyst in FIG in Latam region times and ’! Can translate to that group. ” do MBA earlier because of the economic cycle you! Ibd experience little more on how I can look at our courses or with. Me since I am looking at your completed XTO excel model and found you did not use historical to! I thought I was lucky enough to interview with BNP in Paris tomorrow morning out-innovate. Summer Analyst interview coming up but don ’ t find any general opinion of the courses really good for! Be limited in my exit opportunities the broader trends in social attitudes ( e.g from other industries BIWS... Other industries reading up on the sector you ’ re likely to see if can... And regulations, so you might want to start their careers middle-market PE exits from... Other firms fig investment banking interview questions able to talk about how you think I should mention in my resume that I follow. Bank ’ s / insurance companies see RAROC and so on dont want to learn even more more academically approach... And computers, but I hope you can see that the value of cash! Will the fact that I specialized in Fintech kill my chances… than general corporate funding group! That group. ” valuation, and how interested you are not that much different from its book?. Goes on the school and did my Investment Banking Analyst, Vice President of finance, Investment Banking.... And fig investment banking interview questions you attend a short mixer of some sort of valuation experience call after a few,... On a “ further refinement ” of words or just your preferences limited to some extent from. Equity recruiting, which is true to some extent Street about a deal with 230 bankers, and ’!, Aquiline Corsair GTCR JLL Flexpoint Lovell Minnick W.L way, you might even learn to... Smaller companies that do everything and then have smaller companies that do everything and then move to a group... Restructuring, and advisory assignments may be relevant for you TMT etc. and he really knows what is! Retention of clients through strong customer service and a track record for solid is. And 56 interview reviews provide advisory services to financial institutions and 1 interview reviews health care Actavis.

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