What do you expect from your manager in terms of guidance and mentorship? In your answer, explain what steps you would take to identify the issue, research possible solutions and implement a plan of action. I interviewed at Houlihan Lokey (London, England) in Feb 2017. They were understanding and appreciated my transparency.. Because equity is at the bottom of the capital structure it has the most inherent volatility to it. Final round was a super day with various members of the team. Although it is nice to know that there exists such a collegial and entrepreneurial environment, I would just discount the reviews a little bit because: A more realistic view of the culture would be something like this: 1. 18 days ago. Type your email address. In one instance, I helped a client find a new partner for their business. The questions are understandably technical, including the calculation of EV (enterprise value), how to derive the WACC, some NPV (net present value) questions as well as a long one that asked you how the numbers flow through the three financial statement in the event of a transaction. More Responsibility. However, part of the reason for creating Restructuring Interviews was to provide more in-depth, practical questions and explanations as to what the day-to-day work in restructuring is really all about. Now we're at +$40. With all that said, prior to filing we wouldn't expect the equity to trade at zero. How is the FDD practice at Houlihan Lokey in terms of WLB and comp compared to the B4? I called the client immediately after realizing I wouldnt be able to make the original deadline and explained the situation. The firm also heavily promotes an environment of no social borders between its junior staff and senior officers, to ensure every level of staff has exposure to senior officers in the firm. Get started with your Free Employer Profile, The Ultimate Job Interview Preparation Guide. It's not as hard as expected. Themes MCOL. HR take long time to reply the interview confirmation email. It's also important to note that while a debtor mandate involves dealing with one counter party (the company), a creditor mandate can involve multiplerestructuring investment banks dealing with different groups of creditors. In almost all restructuring interviews you're going to be tossed a waterfall question like this one. Your answer to this question should show that you are looking for guidance and mentorship from your manager, but also how you can provide it to others in the workplace. 33 Houlihan Lokey Analyst interview questions and 33 interview reviews. An interview asked me to explain the business model of the tech company I thought I understood the best. Mostly fit based interview then followed up with a case study. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, Anonymous interview candidate in San Francisco, Anonymous interview candidate in New York City, Anonymous interview candidate in Minneapolis, 101 Investment Banking Interview Questions, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. This question is an opportunity to show your enthusiasm for the company and its values. What is the difference between a bank, an insurance company and an investment bank? So a distressed company - from the perspective of a restructuring investment banker - is not just one with subpar and deteriorating financials, it's one thathas limited and likely declining liquidity mixed with maturity walls coming due thatlikely won't be able tojust be rolled over. World Financial Centre No. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. Due to the unpredictable workload and big responsibility. 2024 Summer Financial Analyst (Class of 2025) - Corporate Finance, Private Funds Group - New York. Investment Banking FAQ: 25 Most Common Questions from Readers, Investment Banking Analyst Program: Info for Sophomores and Juniors, Investment Banking League Tables by Industry 2013. The debtor has to come up with plans for how it wants to restructure - whether that is deciding between doing something out-of-court or in-court or developing a Plan of Reorganization if the company has already filed - while creditors just need to take the proposal given and decide how they want to negotiate with it (or if they want to make an entirely new counterproposal). This is an estimate based on latest salaries received from employees of Houlihan Lokey. Nova York, Estados Unidos. The interview went pretty well, I got invited to Dallas for a Super Day which was relaxed but a little unorganized. Then, I break down the problem into smaller pieces so that I can analyze each part individually. The process took 2 weeks. Can anyone provide insight into working for Alvarez & Marsal PEPI (Interim CFO or Managed Services) or Houlihan Lokey's AAS practice (e.g. Anyone know anything about Houlihan Lokeys M&A Tax group? The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. I applied through college or university. The firm serves corporations, institutions, and . Houlihan Lokey is a global investment bank that specializes in mergers and acquisitions. The Interview Difficulty is a score ranging from very difficult (red) to very easy (green) generated based on the Interview Insights at this company. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. ), but that's no issue because they can just roll over (refinance) their debt when it comes due. Had a 1st round zoom interview and a 2nd room zoom interview. If you aspire to be a career banker, the best thing you can do to yourself is to get very well prepared for the interview, especially on the technical part which HLHZ is focusing on. What's a deal we worked on that you found interesting? . Anonymous Interview Candidate in London, England, I applied online. Several technical rounds via phone with Associate level personnel, written exam testing knowledge of financial equations, three-statement analysis and several open ended case-study style questions, in person round with 5-6 officers. . Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. MDs were on phone the whole time and left early. They also want to see if your ideas align with their own, so be sure to mention any strategies theyve mentioned in previous interviews or conversations. behind why downgrades could be happening and debt is trading down. Sign In. When it comes to interviews, preparation is key. Generally, you can bucket the kinds of deals done in RX into: out-of-court and in-court (Chapter 11) restructurings. In this case, you'd expect equity to pop as now there's even more time for the company to turn things around (and the longer you have to wait for a better tomorrow, the more the value the equity will have just as would be the case with a call option). Est Annual Revenue: $500m+ . Free interview details posted anonymously by Houlihan Lokey interview candidates. Explain residual income and its importance. Houlihan Lokey Salaries trends. Houlihan Lokey Interview Process. The process took 4 weeks. Houlihan Lokey has extensive expertise in mergers, acquisitions, divestitures, activist shareholder and takeover defense, and other related advisory services for a broad range of U.S. and international clients. If you hover over the various sections of the doughnut, you will see the % breakdown of each score given. The percentile score in the title is calculated across the entire Company Database and uses an adjusted score based on Bayesian Estimates (to account for companies that have few interview insights). Do some research and see what you can find. After finding several potential matches, I presented them to the client so they could choose the best option. Very thorough interview. Moving to the balance sheet, cash is up by $40, debt on the liabilities side is up by $100 due to the PIK interest, and shareholders equity (via retained earnings) is down by $60. Are you familiar with Bloomberg Terminal? However, there are a few things to keep in mind when going through it if you have no prior exposure to restructuring: The Troubled Company is a great place to begin and there's no reason not to go through it when you have time. Financial Restructuring Summer Analyst. Here are 6 reasons why middle market / boutique investment banks can be more attractive than the bulge bracket. The process took 2 weeks. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. About a week later I was invited for the 2nd round in New York. Are you considering a career or internship at a top middle-market investment bank? CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. On campus interview for first round, then invite to office. . Since its first day of trading, this undiscovered investment bank has delivered . I received a recruiter call and didnt even realize they had their own M&A Tax group. Obviously the reason why PIK is usedis to try to keep the amount of cash interest flying out the door to a minimum thus protecting the likely already fragile liquidity position of the company. Alternatively, there are pre-packs, which involvecreditors and the debtor agreeing prior to filing Chapter 11 over what the reorganized company will look like. For example, it's of course true that you could just say a company is likely in distress if their bonds have been downgraded from investment grade to junk. The process took 4 weeks. A distressed company that will ultimately be engaged by a restructuring investment bank like HL will not only likely have recent downgrades and debt that's trading low, they'll also have a reason for needing to get right-sized soon. Your companys mission statement of helping clients achieve their goals really resonates with me, and I think I would be a great fit here. Houlihan Lokey. On Fishbowl, you can share insights and advice anonymously with Houlihan Lokey employees and get real answers from people on the inside. Over the past 40 years, Houlihan Lokey has established one of the largest worldwide financial and valuation advisory practices. Houlihan Lokey is a global investment bank that works with many large companies. Candidates applying for Financial Analyst had the quickest hiring process (on average 16 days), whereas Summer Analyst roles had the slowest hiring process (on average 20 days). Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial . This question can help interviewers learn more about your interests and how you spend your free time. Houlihan Lokey operates in 4 divisions: M&A (mergers and acquisitions), capital markets, financial restructuring, and FAS (financial advisory services). . Why financial restructuring? Anyone know anything about Houlihan Lokeys M&A Tax group? The second round was 2 hours of zoom interviews starting with MD working down to analysts. If you look at the Vault report, all the verified reviews (i.e. Anyone have insight on Houlihan Lokey Dallas? Quantitative Strategist (Vice President). Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. This question can help the interviewer get a better idea of your understanding of the financial services industry. Phone interview. Example: I have worked on several mergers and acquisitions during my career. MCOL. It was a 30 min phone call (1st) and super day was 2 weeks after on-site. Even though the interview was difficult, the interviewer was pretty nice. Group/Division/Type: Generalist. Gave three companies and scenarios and was asked which one was best to pitch to a client. Free interview details posted anonymously by Houlihan Lokey interview candidates. Was contacted 2 weeks after online submission by HR based in London, it was for a position in Dubai. Find a Great First Job to Jumpstart Your Career, Stand Out From the Crowd With the Perfect Cover Letter, How to Prepare for Your Interview and Land the Job. If you are evaluating a company from the manufacturing industry, which multiples do you prefer to use and why? Technical questions will focus on discounted cash flow analysis, valuation strategies, and precedent transactions. The number you see in the middle of the doughnut pie chart is the simple average of these scores. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. Glassdoor users rated their interview experience at Houlihan Lokey as 43.0% positive with a difficulty rating score of 3.11 out of 5 (where 5 is the highest level of difficulty). Give us an example of how you solved a difficult issue in the past. However, most positions will require at least one behavioral interview and one technical interview. Our experience in M&A has earned us consistent recognition throughout the industry. All Rights Reserved. So perhaps they do a favorable out-of-court restructuring that mitigates the need for the company to consider filing. Also, the interviewer couldn't speak very well, which made it hard to understand. 40 Houlihan Lokey Financial Analyst interview questions and 39 interview reviews. For instance a debt exchange may involve the new debt instrument - that folks are exchanging into - having 5% cash interest and 4% PIK, for example. I interviewed at Houlihan Lokey (New York, NY) in Nov 2019. How would you determine an equity value of firm with debt exceeding the enterprise value? Simply put, as a company gets more reviews, the confidence of a "true score" increases so it is pulled closer to its simple average and away from the average of the entire dataset. Student Intern Amplify Trading Jul 2021 - Jul . Traditional debt above equity in the capital structure is capped at what their returns can be (the given interest rate plus the repayment). When answering this question, try to think of an example that showcases your problem-solving skills and the steps you took to solve the issue. Flew in the morning of and interviewed until about 4PM. Houlihan Lokey. Trademarks owned by cfa Institute of each score given the client immediately after realizing I wouldnt be able make... Is a global investment bank this one got invited to Dallas for a position in.... Best to pitch to a client find a New partner for their business Lokey in terms WLB! Financial services industry a bank, an insurance company and its values internship at a top middle-market bank..., valuation strategies, and precedent transactions ; a has earned us consistent recognition throughout the.... A case study their own M & a Tax group round zoom interview and 2nd... 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