Finance 101:

If I Only Knew Then

Nick Sayers
W&L 02
Table of Contents
Forward
I. The Three !s
re"aration
ersistence
erfection
II. #es$%e &$ildin'
III. Co(er Letters
What )ind of Letter*
I+. #esearchin' Co%"anies
The Co%"any
The osition
+. Networkin'
+I. ,""lyin'
The Senior Itinerary
+II. Inter(iewin'
First #o$nds
o Sa%"le -$estions
o Inter(iew re"aration
o Inside the Inter(iew
The Second #o$nd
+III. .(er(iew of In(est%ent &anks
&$l'e &racket
/iddle /arket & &o$ti0$es
I1. #eso$rces
2
Forward
The best way to learn is to make mistakes and learn how not to make them again.
I am not writing this as someone who had a perfect job-hunt, but more as someone who
made numerous mistakes, large and small. From misspelling the names of companies
and people on letters, to sending letters to the wrong companies, I had a variety of
mistakes that, in some cases, clearly cost me the job. uckily, there are more than three
firms out there and you are given a little leeway if one application falls through.
I applied to over twenty firms and went through forty interviews, including the
first and second rounds, and while I remembered the good things, I always paid careful
attention to what I would have liked to said or done in my letters and interviews. This is
an informational piece that serves as an overview to the job search and provides some
tips from what I have learned going through the process the past few years. I guess you
could call it an !insider"s perspective# to the job search, but how !inside# is clearly
debatable.
I remember last year how many times I wished someone would just tell me the
answer as to how to get a job. I asked a lot of $uestions and received some valuable
advice. From my e%perience, and from others before me, I wrote the following guide to
help others out in their search for a job in finance. &lease keep in mind that it takes much
more than a couple of pages to be fully prepared and make sure to use the links that
e%pounds on the specific topics. If nothing else, think about the job search as one large
audition where you have to sell yourself better than the hundreds of other candidates, and
you will be one step ahead.
I. The Three !s
'very informational guide has some kind of corny acronyms or letter pairings(
this one entails the three &"s. )hile my friend has mentioned that there are actually
seven &"s *prior proper planning prevents piss poor performance+, I will try to notch out
my own path with re"aration, ersistence, and erfection. ,nd no, you do not have
to be perfect. These are the basics you should stick to throughout the course.
re"aration2 -ust like anything else, if you have not practiced or do not know
what you are getting into, failure is imminent. I can recall my first interview e%perience
that occurred right at the end of the summer with an investment bank in .hicago.
Through a contact I was able to land a coveted first round interview on location. uckily
the office was in the same building as my internship. The night before I bought a book
on investment banking and briefly glossed over it and came up with a couple of potential
$uestions they might ask me. It never occurred to me, however, that they might ask me
why I wanted to do investment banking. They did, I stumbled, and the rest is history with
/
that company. 0o not take preparation lightly, interviewers and contacts know
immediately if you have done your homework. This is simply a brief overview1 there
will be much more on preparation for resume writing, interviews, and contacts to follow.
ersistence2 The job search is more of a marathon than a forty-yard dash. In my
own cynical way, I always had a sneaking suspicion that once you applied or sent a cover
letter, companies put you on a clock to see if and when you would follow through with a
callback, thank you letter, or what have you. &ersistence can afford you recognition and
get a foot in the door if used properly. I applied with a 2ew 3ork firm junior year for an
internship, and while it was not the one I ended up with, I made sure to contact them after
the interview process and during the summer and early fall. ,lthough I did not end up
with the firm, the rapport I had built granted me a first round interview in the fall. 4any
firms today are initiating hiring free5es, but at the same time the human resources
department is filing information on applicants and remembering who was naughty or
nice.
0iscouragement is the number one killer of persistence and eventual success in
the job market. 4any people start believing that just because one or two firms ding them,
every firm will conspire to do the same. It is important to understand there are hundreds
of companies and thousands of opportunities. Failing to apply out of an attempt to save
face is the same if not worse as cutting yourself from the running. .ast the net wide at
the beginning and treat every opportunity as if it were your last.
erfection2 In this conte%t, perfection does not mean you have to be the perfect
candidate1 it has more to do with attention to detail. Initially employers are looking for
reasons to cut applications before they get to the substance of your application. ,
misplaced period or misspelling will signify to the employer that you do not care about
the application and that you are likely to screw up again. 6ack to my perfect fall season,
I sent out a cover letter and resume to another large 2ew 3ork firm. 7aving written the
documents at the end of the summer at $uite a remedial level, I misspelled the firm"s
name the first time and kept on going. I wanted to make my application important, so I
sent it second day Fed'% *actually not a bad idea+ to inspire intrigue at the other end. ,s
I was driving back to school I received a call from the managing director I sent the
application to, and let"s just say he was more than displeased, if not embarrassed, for me.
,n investment banking analyst needs to have great attention to detail and that is one of
the first things employers look to find. &roofread, proofread, and then proofread a little
more to ensure that your application makes it past the wastebasket and on to the part
where the employers actually care about who you are. In other words, don"t shoot
yourself in the foot, like I did.
II. #es$%e &$ildin'
The resume is perhaps the most important piece of your application, serving as a
story-teller to what you have been up to for the past 8-9 years of your life and beyond. It
is important to tell your story clearly and in the best marketable way possible *without
e%aggerating of course+. There are multitudes of formats people use and I am not going
8
to suggest a single format, but there are some pointers I picked up through career services
and feedback from employers. )hat I have learned(
Fro% the To" 3own2 ,t the top you are going to want to include your contact
information at home and on campus so the employers can call you with the offer.
,lso at the top should be your primary education with e%pected degree, :&,, major
:&,, graduation date, as well as academic honors. 4ake sure your :&, goes out
two decimal places1 otherwise you may arouse suspicion and discredit your
application.
/iddle4&otto%2 7ere is where you will have to make a decision based on your own
e%perience. If you have very little work e%perience, but more activities and
leadership, you will want to have the ne%t section highlight what you have achieved
on campus and place your activities after education. If you have had a great
internship or a series of jobs to highlight then make that your ne%t section.
'mployers see the resume from the top down and thus you can emphasi5e your
achievements based on placement. ,t the bottom, you should also mention your
relevant skills. This can include all the programs you can work with on computers,
language skills, and other superhuman talents you may possess.
For%at2 0epending upon how much information you wish to divulge, te%t should
range from ;<-;2 point and be one of the more widely used fonts. 6ullet points are
helpful in breaking up descriptions and involvements in various activities. =sing
bold and italics can emphasi5e and help to separate various roles and activities as
well.
Last In First .$t2 )hen listing activities and jobs, place the most recent
e%periences first to make it more readable and understandable for the employers. For
instance, under academics, you will list your )ashington and ee information first
and 7igh >chool information last.
Seniors45$niors2 >eniors going after full-time jobs should not include very many
items from high school, as employers e%pect to see that you have done something in
your four years at college. -uniors applying for internships are allowed more leeway,
but do understand that high school was three years ago and employers place less
emphasis on the fast times at ?idge 4ont 7igh. If you had a monumental high
school career and were student body president, track captain, all city football, which
can help to distinguish you from other candidates then you should include the
relevant information.
What to Incl$de2 This sounds very basic, but include activities where you played a
leadership role or had e%tensive involvement. 7ighlight and emphasi5e these
activities with an e%planation of the club or activity, a description of your role, and
individual and group accomplishments in which you took part. 4ake sure to include
dates after each job or activity for a frame of reference.
@
What Not to Incl$de2 'mployers can recogni5e resume fodder and will grill you in
the interview on a thoughtless listing, changing the tone of your interview from
talking about what you wanted to highlight to something meaningless and irrelevant
to both parties. 3ou will be better off including one activity that you would love to
talk about and highlight than two activities where you were a passive member.
Last Ti"s2 To make your resume more aesthetically pleasing and thus competitive,
use all the space on the page and make sure there are not large gaps. These can be
distracting and detract from your candidacy. Be active( write in the active voice and
use strong verbs in describing your activities.
This is a very basic crash course in resume building, but there are a number of
sites with helpful advice and e%amples. The career services site is full of good advice
and sample resumes( http(AAcareers.wlu.eduAresumeguide.pdf
III. Co(er Letters
.over letters are an absolute must for most applications and should be used even
if the employer does not re$uire one. .over letters allow you to e%press yourself in
paragraph form and further highlight and demonstrate jobs and activities on your resume.
It presents a golden opportunity to do a little bragging.
6y the same token, you will want to keep in mind &'?F'.TIB2 and proofread
your cover letter thoroughly. In the course of uploading eighteen different cover letters
in one night to apply on e-recruiting, I mistakenly saved a cover letter under the wrong
company name. ,s it turned out, the employers really liked my resume, but were stunned
by the negligence. ,fter calling the company, I was still able to secure a first round
interview, but my candidacy was pretty much dead in the water before I even started. >o
here is what I have learned along the way about cover letters(
What )ind of Co(er Letter* There e%ist many different kinds of cover letters, but
it essentially boils down to employer contact and networking cover letters. I will talk
mainly about employers in this section and e%pand upon networking in the following
sections.
6%"loyer Contact2 These letters are going to be more formal than networking and
highlight your interest in the job and why you should be selected. They should be
catered to the individual employer and demonstrate that you have done your research
on the company and know a little bit about what you want to get into. To go back to
my horror story about cover letters, I essentially used the same first three paragraphs
*changing the company name+ and retooled the fourth to illustrate what I knew about
the company and why I would be good fit. 4ost letters are 8-@ paragraphs, here is a
breakdown of a five paragraph cover letter for employers(
First ara'ra"h2 This is introductory and tells who you are, why you are interested,
and how you found out about the position. This should be fairly short( a couple of
sentences will do.
9
Second ara'ra"h2 7ighlight specific achievements you have accomplished at
school, further indicating why you would be a great candidate for the job. ,lso talk
about your relevant business, accounting, and finance courses that will provide you
with an e%cellent base of knowledge. 4ake sure to emphasi5e any leadership
positions you mentioned on your resume and applicable skills you utili5ed.
Third ara'ra"h2 4ention your relevant jobs and internships you performed and
how the e%perience you obtained in those positions will make you the best fit for the
firm. >tress the skills you enhanced and obtained while working and how they will
be beneficial to the firm.
Fo$rth ara'ra"h2 7ere is where you mention a couple of reasons why you are
interested in the firm and why you would make an e%cellent fit. For e%ample, for a
smaller firm, you might mention how coming from )ashington and ee would make
you the ideal candidate in their corporate culture. For a larger firm, you might
mention how you like the broad opportunities and global reach that a firm of their
si5e can offer.
Fifth ara'ra"h2 Indicate to the employer what the ne%t step will be( when and how
you will contact them to in$uire about the status of your application. ,lso, this is
your opportunity to add a thank you and a courtesy appreciative note. If you are
enclosing your resume in the same package, mention that it is also attached.
I made use of the career services site on cover letter writing and found it helpful as
well. It e%plains a number of different cover letters and provides some helpful samples(
http(AAcareers.wlu.eduAletterguide.pdf
I+. #esearchin' Co%"anies
The more you know about the company you are going to apply to the more
knowledgeable you will be in the interview. Thoroughly researching the companies can
also help you determine those you would like to work for and those that may not be
suitable to your interests. 3our two main research objectives should include finding out
first about the company and then the position.
The Co%"any2
Si7e( )hat si5e is the firm and what is the scope of its businessC )ill you be in
Toledo, B7, or will you have an opportunity to be in &aris, FranceC The si5e of the
company can also help indicate career path potential. For e%ample, the bulge bracket
firms in 2ew 3ork run a two-year and out analyst program, where the money is good,
but the recognition and imminent career path within the company are very limited.
,t smaller financial firms, there may be opportunity for greater advancement and
learning opportunity, but these may come at the cost of location, pay, and prestige.
D
Niche( Find out what the company"s bread and butter is, where it speciali5es, and has
a comparative advantage( is the firm the leading underwriter on the street or does it
have greater focus on mergers and ac$uisitionsC
C$lt$re( Try and gain an understanding of the corporate culture of the firm( is it a
meritocracy and has superb bonuses for overachievers, or is it a rigid bureaucratic
institutionC
Career otential( )here do people go when they leave the firm, basically, what is
the career path that can begin at the firmC 0oes the firm have strong business school
placementC This is an important consideration if attaining an 46, is in your future.
For e%ample, a smaller firm may not have the same name recognition as a 4errill or
:oldman, but may provide a better opportunity for you to distinguish yourself down
the road for 6-school, by allowing you to take on greater responsibilities and
leadership roles.
8irin'4Firin'( Find out about the current environment in which the company is
operating and how well it is coping( is the firm in a growth phase or retrenchingC 0id
they over-hire last year and have a hiring free5e on now or vice versaC
3ates( Enow when the deadlines to apply are and make sure you schedule them. For
the most part, full-time employment dates for financial services firms are from
>eptember-Bctober and internships are anywhere from .hristmas vacation to early
spring.
The osition2
5ob 3escri"tion2 Find out what the company is going to e%pect you to do and come
up with your own ways to convince them you can fit the job. For e%ample, if it is a
research position, be prepared to demonstrate what you have done in college to best
aid your research ability. This is also a good opportunity to find out who you will be
working with and who you will be meeting.
Stress Factor2 )hile jobs in finance are not the most difficult in the world, they are
very demanding in terms of the time you are e%pected to work. In the interviews
employers will be screening to see if the candidate can hack it working F<-;<< hours
a week under intense stress. 2ot all companies are the same, however, and tend to
have different e%pectations out of their employees.
#es"onsibilities2 ,nalysts in different firms take on different roles with differing
degrees of responsibilities. It is important to find out what you will ultimately be
responsible for and to whom you will be responsible.
What!s Ne9t* Find out what happens after two years, is there an opportunity to
make associate or do people find other work and go onto grad school. This can play a
F
major factor depending on what you are looking for in terms of a career path and how
accepting you are of change.
#eso$rces2
4y favorite resource for finding out about the industry, companies, and the
positions is on http(AAvault.comA. The vault has a great book on investment banking and
free use of its site if you registrar. The vault was my bible I consulted before talking to
the major 2ew 3ork and other large regional firms. It breaks down for you the company
description, where it ranks, corporate culture, and the entry-level positions. If you are
interested in financial services I strongly recommend the guide to investment banking.
,lso, talk to alumnae who are actually working at the banks. )hile they are not
always accessible, they can be e%tremely helpful and are usually very willing to help out
)G undergraduates. It will be important to understand they may have a strong bias
toward their company, but talking to them can only help in the information gathering
process. To get in touch with alumnae, use the colonnade connections site(
http(AAwww.alumniconnections.comAolcApubA)=A. 3ou will need to register first before
you can use it, but it categori5es the listed alumnae into cities and positions for ease of
use.
:ettin' the 5ob2 Networkin'; ,""lyin'; Inter(iewin'
+. Networkin'2
.oming from )G, you have a decided advantage in the strength of the alumnae
connections. ,lumnae can open doors that might otherwise have remained closed to
)G students. For e%ample, last year most of the 2ew 3ork banks cut )G from their
active recruiting. The ,lumnae at the various banks were able to secure a precious few
interviewing slots for the students who contacted them and made the grade. 6eyond
networking alumnae, use any resource you can and hit your dad or mom up for their
friends in your desired field, but my focus will be on the ,lumnae factor.
2etworking does not have to be job-specific and in most cases can lead to
information on other opportunities. The main thrust of networking is to get a job, but that
is the last step. The first step is to get the feelers out there and in$uire into what might be
available. ,lumnae, in most cases, want to help students, but they need help themselves.
I remember thinking that if I sent a letter out to alumnae stating my love of business that
a job would magically appear in the mail. 3ou need to help them determine what your
interested in and guide them to what might be a good fit for you. In most cases the
person who receives your letter does not have your dream job, but heAshe likely knows of
a friend or another )G graduate that might. , friend of mine decided that he was
going to live in 4inneapolis for family reasons. )hile the )G representation is
relatively low in 4innesota, he was able to find a job three weeks after sending out
around twenty networking letters. 2etworking can be crucial for locating those hard to
find internships as well. 7ere are a few steps to follow(
H
<. Write Co(er Letter( This letter differs slightly from the cover letter to the employer
in that it is more informal and informational. 3ou should tell the alum what your
interests are and what kind of career you are looking to begin. &ersonali5e each letter and
include how you were able to find them, as cold letters from strangers can be a little
scary. ,lso, make sure to include in the letter how and when you will contact them so
they will be e%pecting your call and will not be surprised. :iving them a call the ne%t
week is pretty standard. The .areer >ervices site in the !.over etter to 'mployer#
section is $uite useful in how to write a networking cover letter.
2. Find Contacts2 Bne of the best sources to find alumnae contacts in various cities and
fields is through the .olonnade .onnections site mentioned previously. The site contains
a database of alumnae and has their contact information as well as job description online.
If this site fails to suffice, then go to the career services office to get a printout of
alumnae in the city and career field of your choice.

=. Send acka'e2 )hile this is pretty basic, there are some important things to keep in
mind. 3ou should include an updated version of your resume and print out both the
cover letter and resume on nice paper using a laser printer. 3ou can get the paper from
the bookstore on campus. )rite down a list of everyone you sent your information to so
that later you will not second guess yourself and get confused in the shuffle of sending
out 2<I letters.
>. Follow ?"2 4ake sure to follow up with the alumnae according to what you told
them in your letter. )hen you follow up, be prepared to answer the $uestion, !so, what
do you really want to doC# )hile this is a simple $uestion this is perhaps the hardest to
answer in depth. ,lso, in your conversation be active and do not sit on your hands
waiting for the alum to facilitate the conversation. )hile alumnae want to talk to you,
they cannot read minds and are looking for guidance themselves as to how they can help
you. Bnce again, write down everyone you talked to and keep calling the others you
were not able to contact in the days to follow. 6e polite and send a thank you to keep
yourself fresh in their memory and on your side.
+I. ,""lyin'
,pplying should be pretty straightforward, now that you have your preparation
down, but remembering the dates is essential. It helps to have a schedule to follow so
you are ready for the deadlines and not scrambling to make the drops. 6elow is a basic
itinerary to follow(
Seniors
5$ly2 This is an opportune time to start contacting and networking alumnae and
employers. 3ou will likely be finishing up your summer job and will be able to talk
about all the wonderful projects you worked on.
,$'$st2 ,t this point, you have wrapped up your summer job and should have your
resume prepared and updated. If you are in the vicinity of potential employers,
;<
contact them and see if you can set up a lunch, or even a first round interview. ,t this
point it is early in the game and you will have a jump on the competition.
Se"te%ber2 0eadlines are fast approaching and you should have a resume and cover
letter prepared. 0eadlines come in late >eptember on through to 2ovember. This is
when you should set up a practice interview and prepare for Bctober interviews.
.ctober2 0eadlines keep coming and interview dates are here. :o through the
interview guides and be prepared for the first rounds on campus and the second
rounds on site.
No(e%ber2 ,t this point, the rush is over and only a few companies will post drop
deadlines. >econd rounds will likely still be ongoing.
Juniors
Internships are less uniform as full-time jobs and the dates are more sporadically
placed. 3ou will want to check the e-recruiting web page for a list of deadlines.
>eptember is a good time to start networking and searching for internships. 4ost
deadlines for internships are late fall to early winter.
/odes of ,""lication2 For all companies connected to )G recruiting, you
should be able to apply on http(AAwlu.erecruiting.comAsecurityAlogin.jsp, where all you
need is to upload a resume and a cover letter and wait for an electronic response. For
companies not affiliated with )G, check their website information under !careers# and
follow the instructions. In most cases it would be advantageous to try and find a )G
alumnus at the firm and either apply through himAher or just run your resume by them
before you apply officially.
+II. Inter(iewin'
First #o$nds
To make a sports analogy, first rounds are pretty similar to the playoffs, you were
good enough to make it to the post-season, but now it is do or die to make it onto the
championship. The first round interview is a chance for the employer to see your resume
speak and evaluate your personality, ability to handle stress, and how you can think on
your feet. 2ormally from first rounds, 2-8 people will make it on to the second
depending on how large the new analyst class will be. 3ou will be asked to run down
your resume and talk about what you put down, and answer $uestions that the employer
will have about internships or activities. 7ere is a list of potential first and second round
interview $uestions that came up when I interviewed(
Sa%"le -$estions2
;. )hy did you decide to go to )GC
2. )hy do you want to be an investment-banking analystC
/. )hat is investment bankingC
8. )hy do you want to work at our firmC
;;
@. )hy do you want to work in our city as opposed to 2ew 3ork or elsewhereC
9. )hat $ualities make a good analystC
D. )hat do you think an analyst does on a daily basisC
F. 6asic accounting $uestions *i.e. how do calculate working capitalC Enow how the
financial statements link to each other+
H. )hat e%periences or internships that you have had show that you can work this hardC
;<. )alk me through your resume.
;;. )hat e%periences or internships that you have had demonstrate that you will be a
great investment-banking analystC
;2. )hat do you think is the weakest part of you resumeC
;/. )hat are your greatest weaknessesC
;8. )hat has been your greatest failure in college *or in life+ and whyC
;@. 0o you see yourself as a leader or a followerC
;9. )hat is your most significant accomplishment and whyC
;D. )hat is the most significant thing on your resume and whyC
;F. )hat accomplishment or e%perience in your life are you most proud of and whyC
;H. If you could change anything about your college e%perienceAcareer, what would it be
and whyC
2<. )hat isAwas your favorite classCJleastC
2;. 0escribe a situation where you used communication skills effectively.
22. 0escribe a situation where you acted as a leader and were integral in a group"s
success or failure.
2/. )hat one person do you admire most and whyC
28. If you could invite to dinner any five people, dead or alive, who would they be and
whyC
2@. It is 9pm Friday afternoon, and your entire family is arriving in town in two hours.
3ou have not seen your family in several months, but your K& just called to tell you
that he *or she+ needs a pitch done by 4onday. 7ow would you decide between your
family and workC ,nd what decision would you makeC
29. I could give you a dollar every year for the rest of your life or I could give you L;@
right now. )hich would you prefer and whyC
2D. If you could spend an entire day doing whatever you want, what would you doC
2F. )hat would make your analyst e%perience a successful one in your eyesC
2H. )hat do you hope to get out of your e%perience as an analystC
/<. )here do you see yourself in ;,@,;<, or 2< yearsC
/;. )hat do you want to do when you grow upC
/2. 7ow would you select a company to invest in for your personal investment portfolioC
)hat ratios andAor attributes are importantC
//. .urrent events( i.e. 7ow do you think the terrorist attacks will affect the economy in
the long termC 7ow do you think the decision to go to war will affect the financial
markets and the economy over the ne%t yearC
/8. 7ow do you value a companyC 0o you have any idea how we might value a
companyC
/@. 3ou have a balance sheet with the assets being smaller than the liabilities, tell me
three possible attributes of this company.
;2
4ore creative $uestions(
/9. )hat is your favorite bar in whatever .ityC
/D. )hy are manholes roundC
/F. If you could be a car, what kind of car would you beC
/H. 7ow would you describe the color green to a blind personC
Inter(iew re"aration2
3ou can never be too prepared or know too much information going into an
interview. Through forty interviews last fall, I never had the same interview twice and
each one had its challenges on different subjects, most of which I had prepared for in
advance. In preparing for your interview, I strongly recommend the vault.com"s Guide
to Finance Interviews. The book goes over valuation techni$ues, the intricacies of the
market, and has hundreds of potential $uestions. 'ven if you are on top of your game,
the book provides a great overview of the basics you will need to know for the interview.
The .areer >ervices guide to interviewing is e%tremely helpful as well(
http(AAcareers.wlu.eduAinterviewguide.pdf
#esearch( I mentioned earlier the importance of researching the company, go over
that section again and know everything you can about the position, the company, and
the industry.
Stay C$rrent2 Enow what"s going on in the news and be knowledgeable about what
is going on in the financial world. ?ead the journal and other financial press, such as
Fortune, and be prepared to point back to or discuss articles you have read. 6eing
well read in the financial press will help you pick up the language of finance that you
will need to speak in your interview. ,lso, know where the major market indices are
and have a few stocks in mind to talk about.
,nalytics2 4ore than likely you will be asked a finance $uestion and will need to
demonstrate your grasp, if not mastery, of what you learned in the core classes. The
interviewers have a transcript and have a basic understanding of how much you know
and they will certainly test your knowledge. >ome $uestions will be accounting
oriented and cover the three main statements in a ;<-E, some will be market related
and cover various metrics involved in selecting stocks, and others will deal with
valuation techni$ues used in investment banking. .heck out the Guide to Finance
Interviews to get a good overview of what you should know. The following is a
rough guide to valuation techni$ues and other analyses used in investment banking(
o .omparative .ompanies ,nalysis *.omps+
Finding comparable companies( operational and financial aspects
o .omparable ,c$uisition ,nalysis
4ost recent transactions with similar operations and financials
o 0iscounted .ash Flow ,nalysis *0.F+
&rojections
;/
Terminal Kalue
0iscount ?ate *)eighted ,verage .ost of .apital, ,&K+
>ensitivity ,nalysis *different scenarios+
,djustments
o i$uidation ,nalysis
,ssets sold off to pay for the liabilities of the business
o 6reak-=p ,nalysis
=sed to determine if the sum of the parts is greater than the whole
o Internal ?ate of ?eturn and 2et &resent Kalue *I??, 2&K+
!7urdle ?ate#
o 'nterprise Kalue vs. '$uity Kalue
'nterprise Kalue M value of all the business"s assets
'$uity Kalue M 'nterprise Kalue N 2et 0ebt
S"ecificity2 Enow e%actly what the company does1 if it does mergers and
ac$uisitions only, then be prepared to talk about the ins and outs of the !deal.# :o to
the company"s website where you can learn about what they do and what is currently
going on with the company. I even found some sample interview $uestions on
ehman"s site, as well as some interview tips. 3ou are certain to be asked why you
want to work for the specific company. Enow why you want to work for the firm and
have well planned out answers for this. 4ost of these answers will come from your
research on the company and finding out more about their market niche and corporate
culture.
The .b(io$s -$estion2 6e prepared to answer the $uestions you think might be too
obvious or vague. 3ou will be asked why you want to do investment
bankingAsalesAtrading and you will need to have a well thought out and uni$ue
answer. ?un of the mill responses will have you pegged as someone who is just
doing it for the money, and $uickly leave your candidacy in the dust. Tie into this
preparation your past internships or activities you participated in at )G that link
together to understand your passion for finance.
Interests2 6eyond understanding why you are interested in investment banking, you
will benefit greatly from having a specific area of investment banking in which you
are interested. If you have a substantiated interest in a certain sector or product, such
as energy or bonds, it will come across to the employer that you are well prepared and
have a sincere interest. It is important to follow this up in the interview by
mentioning that you are very open-minded and would be able to fit in anywhere with
any group.
Inside the Inter(iew2
Bnce you are inside the door, rela% and clear the mechanism. )hile it is absurd
to think that interviews are stress free1 the more rela%ed you are the more confident and
$ualified you will appear. Take deep breaths to control your breathing and heart rate and
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be confident in the fact that you made it through the door in the first place. 7ere are a
few pointers once you get inside(
What!s the rotocol* For on campus interviews you will be situated in a room with
;-2 interviewers, most of which are alumnae, for a ;@-/< minute interview. The
interviewers will ask you to talk about yourself, why you came to )G, and then
about your resume *check sample $uestions+. 2ormally they try not to trip you up,
but want to see if you are $ualified and would be a good fit to the firm. If you have
an onsite first round interview set up, you are likely to have /-8 different one-on-one
interviews, with the much the same type of $uestions as an on campus visit.
&eha(ior
o =se a firm handshake
o 4aintain eye contact at all times
o 6e energetic and enthusiastic
o ,void monotonic answering of $uestions
o =se a forward posture to demonstrate readiness and enthusiasm
8i'h 6ner'y2 Bne area you are being tested is on your enthusiasm for the job and
your ability to carry on a conversation and carry it on well. &utting forth a high
energy level, even when tired, can turn a potentially dull topic or $uestion into a
winner. 3ou are telling a story and it is important not to put your audience to sleep,
but rather leave them with a strong impression so you will be remembered when they
go over the other 2<< candidates.
8i'hli'ht2 )hen asked to walk them through your resume, which often happens, do
not go line by line, instead, highlight what makes you stand out and will help to
differentiate yourself from the other candidates. 7ere you will especially want to
point out where you took leadership roles or where you took initiative to enact
positive changes. )hen they ask you to walk them through your resume they are
really asking you to tell them what makes you stand out.
#elate the #ele(ant2 )hen asked to talk about an e%perience(
o 0escribe the job or activity in detail
o 0escribe your role in the job or activity
o Talk about a specific area where you were tested or e%celled
o ?elate how that e%perience will help you in the position you are seeking
-&eople will be happy to talk about their e%periences, but will many times fail to
achieve the goal( >'I2: 3B=?>'F. Eeep in mind that you are not there to
enlighten the employer on what 7abitat for 7umanity does, but how building that
house and running the finances of the group demonstrated your financial management
skills, strengthened your leadership skills, and further developed your ability to work
in teams.
;@
T6,/@ Financial services firms are looking for strong individuals, but they are
more importantly looking for individuals who will be strong team players. 4ost of
the groups in the banks are organi5ed in teams and are interdependent. 4ake this
point e%plicit in your interview by highlighting your past teamwork and how that can
relate to you being a future team player with the firm.
Weaknesses and Fail$res2 3ou will undoubtedly be asked to talk about your
greatest weaknesses and failures. ?eason being( it is very difficult for one to talk
about these things. Instead of relaying that you are a la5y bum and have a huge
drinking problem, find weaknesses in which you can also find strengths. Talk about
your weakness as a learning e%perience and how it actually makes you a better
candidate. 4ake sure not to sound like you have no weaknesses or feed them a line
like !I work too hard.# 7ere is a variation on !I work too hard(#
o '%ample( >ometimes I am too focused on my academic work and tend to
neglect and lose sight of my life outside of school.
Ao$ 3on!t )now the ,nswer2 3ou are not always going to know the answer to
every analytical $uestion they throw at you, so be prepared for this. If they ask you a
$uestion from a subject matter you have not yet studied, be honest and tell them.
They know, as an undergraduate going into your senior year, you have not taken
every finance class there is and that there is still time to take courses. 2on-business
majors can use this e%cuse to get out of the more difficult $uestions. 6e confident in
your answer even if you are a little unsure of its correctness.
-$estions2 The interviewer will always ask at the end if you have $uestions, and you
should always have $uestions for them. It gives you a chance to further the
conversation and show a strong interest in the firm and the position. This is a great
opportunity to find out more about the position and the environment in which you
would be working. The following $uestions came out of the .areer >ervices guide to
interviewing(
o )hat type of assignments can I e%pect the first yearC
o 7ow is performance evaluated and how oftenC
o 0oes a new hire have input on team assignmentsC
o 7ow would you describe the work environmentC
o )hat areas of the organi5ation are e%pected to have the greatest e%pansionC
o )hat is a typical career path for an entry-level positionC
Inter(iewin'2 The Second #o$nd
>econd round interviews are similar to the first rounds, but with greater intensity
and duration. In the larger firms I went through anywhere from 8-9 final round
interviews in a day, with each interview lasting /<-8@ minutes. In the smaller firms,
where a great fit is essential, I had anywhere from 9-;< half hour interviews in a day,
with the occasional 2-on-;"s. The firm is testing a variety of skills and traits( endurance,
stress management, working well under pressure, personality, work ethic, communicative
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ability, analytical ability, $uantitative and $ualitative ability, and so onJ I think you get
the gist that these are not intended to be a walk in the park, but the final test to see if you
can hack it at the ne%t level. 4ost of this is covered in the first round, so this will be
more to familiari5e you with the process.
The rotocol2 3ou will be flown to location for second rounds for what they call
a !>uper >aturday,# or whatever day it takes place. 3ou will fly in the night
before and the firm will take you out for a dinner and possibly cocktails. The ne%t
morning there will be someone who leads you around the office, commonly
referred to as a !>hepard.# Interviews normally last /< minutes but could go
longer *usually a good sign, unless you have to e%plain yourself over and over+.
,t the end of the day, e%hausted, you fly home and wait to hear their prompt
decision, anywhere from a couple days to a month.
Final re"aration2
o :ather as much information on the company and position as possible and
be prepared to ask fresh firm-specific $uestions.
o Enow the position you are applying for cold, you can do this via website
o :et a good night"s sleep, and whatever you do, do not drink too much the
night before. 7ung over candidates are rarely successful and tend to
smell.
o ?ela%, but do not drop your guard, no one is truly your friend until they
e%tend an offer( remain professional.
o Eeep in mind your task( sell yourself and sell yourself better than
everyone else.
+III. .(er(iew of In(est%ent &anks
&$l'e &racket2 This is your one stop shop for all the latest in financial products( I&Bs,
debt offerings, 4G,, and secondary markets. These banks are the ones you read and
hear about in the -ournal and the news, making the largest deals and, recently, the largest
layoffs. 6ulge bracket firms carry with their name a level of prestige recogni5ed on the
>treet by insiders. The prestige comes at a cost to the analyst"s personal e%perience.
From what I have heard from past graduates working at these banks, personal recognition
comes at a premium and lifestyle is an afterthought. The recognition of making it in one
of the top )all >treet firms is often reward enough for those seeking a career path in
finance. The typical path is two years and out, then you are off to another gig in finance
or possibly 6-school. If you are considering applying to one of these firms, make sure to
familiari5e yourself with the products they offer and have in mind an area of the firm in
which you would like to work.
Bulge Bracket and arger!si"ed Fir#s:
BCredit S$isse First &oston2 htt"244csfb.co%4
B/errill Lynch2 htt"244www.%l.co%4
;D
BSalo%on S%ith &arney2 htt"244www.salo%on.co%4
B/or'an Stanley 3ean Witter2 htt"244www.%or'anstanley.co%4
B:old%an Sachs2 htt"244www.'old%ansachs.co%4
BLeh%an &rothers2 htt"244www.leh%an.co%4
B5. . /or'an Chase2 htt"244www.C"%or'anchase.co%4
B3e$tche &ank ,le9 &rown2 htt"244www.db.co%4
/iddle /arket and &o$ti0$es2 4iddle market banks are regionally oriented and work
on deals that often fly under the >treet"s radar screen. The bank"s product offerings are
usually more speciali5ed, especially with the bouti$ues, and may focus strictly on 4G,
advisory or bond trading. This is not to say there is less e%pected of an analyst. Bften
times, the analysts take on greater responsibility because the deal teams are thinner. The
career paths are not always limited to two years, and an offer for a third year is not out of
the ordinary. )hen talking to the companies, they will sell the point that you can
distinguish yourself and grow your knowledge $uicker at a smaller firm, in a more
fostering environment. The tradeoff for the e%perience and greater responsibility is
perhaps a little prestige in the bank"s name, but who am I to judge.
$iddle $arket and Bouti%ues &that target '():
B6win' /onroe &e%iss & Co D#ich%ond; +,E2 htt"244www.e%bco.co%4
BWacho(ia DCharlotte; NCE2 htt"244wacho(ia.first$nion.co%
B8arris Willia%s D#ich%ond; +,E2 htt"244harriswillia%s.co%4
B)eefe &r$yette & Woods D#ich%ond; +,E2 htt"244www.kbw.co%4
BLe'' /ason D&alti%ore; /3E2 htt"244le''%ason.co%4
BLincoln artners DChica'o; ILE2 htt"244lincoln"artners.co%4c'iBbin4r.c'i4inde9.ht%l
BSte"hens DLittle #ock; ,#E2 htt"244ste"hens.co%4
BS$nTr$st #obinson 8$%"hrey D,tlanta; :,E2 htt"s244www.s$ntr$strh.co%4
BTownsend Frew D3$rha%; NCE2 htt"244www.townsendBfrew.co%4
B&ank of ,%erica DCharlotte; NCE2 htt"244www.bankofa%erica.co%4
B&&&T Ca"ital /arkets D#ich%ond; +,E2 htt"244www.bbandt.co%4ca"ital%arkets4
I1. List of #eso$rces
#es$%e Writin'2
http(AAcareers.wlu.eduAresumeguide.pdf
Co(er Letter Writin'2
http(AAcareers.wlu.eduAletterguide.pdf
Networkin'2
http(AAwww.alumniconnections.comAolcApubA)=A
#esearchin' Co%"anies2
http(AAvault.comA
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,""lyin'2
http(AAwlu.erecruiting.comAsecurityAlogin.jsp
Inter(iewin'2
http(AAcareers.wlu.eduAinterviewguide.pdf
http(AAvault.comA
Financial Lin'o2
http(AAinvestopedia.comA
;H