Investment Banking Interview Prep Workshop - PowerPoint Presentation

1. Investment Banking Interview Prep Workshop

2. Presentation Topics:2How to land the interviewFormat and strategies to ace the interviewOther resources

3. Networking is extremely important for sourcing job opportunities, getting interviews, and converting offers3Commonly cited benefits of networkingUnderappreciated benefits of networkingLearning / informationAdviceSourcing job opportunitiesGetting interviewsConverting offersBenefitsDescriptionExampleInformational interviews with current professionals offer ability to learn about an industry, company, or roleSpeaking with investment bankers may help a person feel confident that it is the right career choice for themReceive potential guidance such as pursuing an MBA, which may be helpful for some individuals considering a future career moveCan lead to a job offer when there is no posting - employer may create a posting (collecting hundreds of resumes), then close it without interviewing anyoneCan lead to interviews at the firms where you network the most – not firms you did not network with, even with the same resumeAbility to talk personally about culture and the people you know can be crucial for interview successCareer advice can help you pursue the best opportunities, make the best decisions, and avoid pitfalls in your job searchMany job opportunities are filled before a formal posting is ever created – networking allows you to be top of mind for openingsName recognition is crucial for a resume to be chosen from many qualified candidatesRecommendations can overcome other resume flaws (GPA, test scores, experience)Ability to use personal experience and stories when experiencing “Why this company?” questions is crucial Knowledge of industry from networking

4. There shouldn’t be any excuses to not network!4ExcuseSolutionIt’s too much work and timeBe strategic in your approach (smaller company list)Spend less time on lower value-add activities (resume reviews)Networking is often THE most important factor in getting your dream job – it’s worth the effort!Asking for help is an imposition, I don’t want to bother peoplePeople like to help othersEveryone gets help throughout their careers – pay it forward mentalityNetworking is manipulative Be authentic and communicate your agenda clearlyOnly extroverts can network effectivelyFind a way to network that works with natural preferences (phone vs. in-person, smaller group settings, etc.)

5. Your goals during networking should be to recruit advocacy during one-on-one meetings5Recruit advocacyDon’t pitch aggressivelyPersonal advocates are more likely to help you in your career search – find opportunities, send recommendations, etc.Being likable in networking conversations is crucialListen more than you speakHave a conversation! If you have fun, it’s more likely the other person is as wellSelling yourself is not the goal of networkingPitches can come across as aggressive and non-genuine Fewer people will like you if you pitch aggressivelyRecruit advocacy by being genuine, listening well – and not pitching too aggressivelyOne-on-one meetings work better for networking than group settingsYou will be more memorable in one-on-one meetings are more memorableCan show your personality (more difficult in group settings)People can’t help you if they don’t remember you!Information sessions, career fairs, and other similar settings, while helpful, are not enough networking for this exact reason – they aren’t one-on-one and you aren’t likely to be rememberedRepresentatives at firm information sessions may remember very few names / backgroundsIndividuals that reach out to representatives after the session are more memorable

6. Focus of the presentation is on the tactics of successful networking, and less on the overarching principles6Find contactsCreate target company listAsk for meeting / conversationHave meeting / conversationFollow-upOther tacticsFocus of this presentationDevelop list of target companies based on desired industry, location, culture, role, etc.Important step for job search – but not focus of networking presentationCreate contact list of employees at each target company Utilize friends and family, Penn alumni database, and other online sources to create full listEmail to request informational interview with contacts with goal of learning more about the company / industryHold initial informational interview with individuals to get to know them and learn more about their companyCan assess cultural fit and hiring needsMaintain contact with connections throughout job search Potential to ask for interview or recommendation, depending on quality of connectionUtilize information sessions (EISs), coffee chats, career fairs and other Penn resources to develop contacts for networking conversations

7. There are several different resources for finding contacts, but you should prioritize who to reach out to7You should use all available resources to create a contact list……and you should prioritize your contacts based on relevance and likelihood of responseFriends and familyPenn alumni databaseLinkedInCompany websites and articlesUtilize any connections from people you know (upperclassmen, recent graduates, family)myPenn offers advanced search features to sort by industry, company, location and other criteriaLinkedIn also offers advanced search features, and it can highlight friends of friends for potential warm introsSome senior leaders will be listed on a company website or articlesContacts sourced here will tend to be more seniorCompany1-2 levels above youEmployees currently working at your target company are better than former employees (but both are helpful!)AlumniPenn alumni are more likely to respond and be willing to help than non-alumniFunctionally relevantTry to find contacts on the exact team your targetingIf not available, look at adjacent teams (e.g., corporate strategy for M&A)Junior employees make great entry points for networking, and are lower stress conversationsSenior employees have more say!Find contactsAsk for meetingHave meetingFollow upOther tactics

8. Ask for a meeting or conversation through a short, direct email 8Find contactsAsk for meetingHave meetingFollow upOther tacticsHi John,My name is Eddie Roberts, and I’m a sophomore at Penn studying Economics. After interning in private wealth management this past summer, I am interested in exploring investment banking.After seeing your profile on LinkedIn, I was hoping you would be willing to schedule a short, 15-20 minute phone call with me. I would love to learn more about your background in middle market investment banking, especially how you transitioned from private wealth management. I would also appreciate any advice you would be willing to give.I am relatively free in the afternoons on weekdays, but let me know a time that works for you and we can set something up. Look forward to chatting.Best,EddieShortIntroductionDirect askWhyAvailabilitySample email structureYour email should have several similar components to the samplePeople won’t read long emails!Keep to ~100-150 wordsState who you are and what you’re interested in Ask for advice / insight, not job assistance via a phone call or coffee chatTell them what you want to talk about and why it will be helpful (can be broad and specific)Give them your availability – and be flexible!How you found themLet the person know where you found their information

9. Most informational interviews follow a similar flow of conversation9Find contactsAsk for meetingHave meetingFollow upOther tacticsIntroductionContact backgroundWork specificsAdvice / ClosingDescriptionSample questions / statementsBrief reminder of your background and why you reached out to them~30 second “pitch” (background and what you’re interested in)I’m a junior at Penn majoring in Economics. I spent the summer in corporate finance, and I’m interested in learning more about investment bankingI thought your background in both investment banking and corporate finance would be really helpfulLonger story to detail background of networking contactAsk for specifics of why they’ve moved into their current company / industry, and why they left previous spotsHow did you end up at J.P. Morgan? What made you choose Evercore over other options? Why did you join the technology team?Why did you transition from private wealth management to investment banking?Questions related to contact’s current role and companyAsk questions that will help you understand the function and specifics of the work What deal / project are you working on currently?What’s been your favorite deal / project?Has anything surprised you about your current role that you didn’t expect?What types of projects are you targeting in the future?Ask for general career / job search advicePractice a closing statement / technique, as it can be awkward to close a conversationWhat advice do you have for someone in my shoes, looking to explore roles in investment banking?I appreciate you taking the time to chat with me today, we’ve gone through exactly what I wanted to speak aboutIs there anyone else you know that would be helpful for me to speak to?

10. It is important to follow up with contacts after your initial conversation to keep them in your network10Find contactsAsk for meetingHave meetingFollow upOther tacticsGeneral updatesReason to follow upDescriptionExamplesTargeted asksWhen you apply for a position within a company, you should make direct asks of your contacts at a companyCan also directly ask for interviewsBe direct and ask for exactly what you want – don’t be indirect!After giving it some thought, I do think I would like to work in investment banking. How can I get an interview at your firm?I just applied through Handshake to the summer analyst position – would it be possible for you to send a recommendation on my behalf?Reach out to relevant contacts when you achieve a career milestone (e.g., accept an internship offer, start a new job, etc.)Reach out when contact achieves career milestone (e.g., news about company, new job)Short email – do not need to ask for longer conversationI wanted to let you know that I accepted an offer to join Evercore over the summer. Thank you again for all your help…I saw an article about your company’s recent acquisition of Shire – congratulations on completing the deal!Most candidates do not directly ask for what they want (interview, recommendation, etc.). It may feel awkward, but being direct works!

11. Information sessions are important, but not the most important part of the recruiting process11Find contactsAsk for meetingHave meetingFollow upOther tacticsThere are many misconceptions about the importance / tactics of an information sessionYour focus should be on finding contacts to have longer, one-on-one conversationsThe goal of attending an info session should be to develop contacts for future networkingTry to find 2-5 people you would be interested in speaking with one-on-oneMake sure they’re relevant for your job search (your target office, industry, group, etc.)Collect their business cards and follow up after (a quick thank you and later email asking for a full conversation)Don’t stay in “circles of doom” for too long (the circles of people that surround the current professionals)Ask a couple of questions, stay for ~5 minutes, then get a business card and move oneDon’t try to make a lasting impression – you will likely stand out for the wrong reasons insteadAsk fairly generic questions – the professionals at these sessions are tired and don’t want to answer super specific / difficult questions (e.g., anything specific about the financial models they’ve built, etc.)Popular perception about information sessionsTruth about information sessionsMaking an impression at an info session is the most important part of recruitingPeople will remember you afterwardInfo sessions are enough networking for successful recruitingYou can learn everything about a company in an info sessionGoing to info sessions ensures you get an interviewMaking an impression at an info session is extremely difficultPeople will not remember you – they meet hundreds of students!Info sessions are only a starting point for networkingYou will learn more about a company in a one-on-one conversation Going to info sessions definitely does not guarantee an interview!

12. Presentation Topics:12How to land the interviewFormat and strategies to ace the interviewOther resources

13. Most investment banking interviews follow similar formats, and most banks are looking for similar skills13LengthInterviewersQuestion typesBanking interviews are short and have both qualitative and quantitative portionsBanks are looking for enthusiasm, communication skills, analytical capacity and cultural fit30 minutes (occasionally 45 minutes)Typically 1-on-1 or 2-on-1Interviews mostly be current investment bankersQualitative: behavioral, random questionsQuantitative: technical (accounting and finance)Enthusiasm / passionCommunication skillsCultural fitInterest in investment banking as role (and thus willingness to learn and work long hours)Test through technical and banking knowledgeAnalytical capacityVerbal and written communication style (banking is more writing than most realize!)Quantitative aptitude (willingness to learn and comfort with numbers)Personality and workstyle similar to that of other successful bankers“Airport” test (subject to interviewer interpretation)

14. Investment banking interviews typically consist of similar types of questions 14OpeningBehavioralTechnical RandomClosing“Tell me about yourself” “Walk me through your resume”Opportunity to go through your full story, start the interview with the narrative you want“Tell me about a time when…”Opportunity to tell stories that paint you in the best light and highlight your specific strengths / skills“Walk me through the financial statements” “How do you value a company”Opportunity to show your enthusiasm for banking by knowing the basics of the quantitative aspects of the jobSet of questions that are hard to predict and vary by interviewerInclude strengths / weaknesses, level of commitment, sell yourself, and long term future questions“Do you have any questions for me”Questions from you to the interviewerImportant to not end on a bad noteWhy…“Why banking” “Why this bank” “Why this city” “Why this group”Opportunity to show your knowledge of the specific bank or team, and highlight why your passionate about them

15. Telling your story clearly and chronologically is hugely important for interviews15OpeningBehavioralTechnical RandomClosingWhy…Story OverviewTell your story in response to questions like, “Tell me about yourself” or “Walk me through your resume” (almost always the first question of an interview)Should be chronological and last between 2-3 minutesFocus on why you’ve made choices (why Penn? why banking? etc.)The most important question of any interviewDescriptionSample (abbreviated) storyBrief introduction to your background (hometown, college major)Specific event or experience that led to your interest in finance / bankingProgression through student groups or jobs that has led to bankingWhy investment banking and why this firmI grew up in a small town and Mississippi, and knew I wanted to go to college in a larger city. Penn was a great opportunity for me to come up to Philadelphia and experience a new culture. I major in Economics here because I’ve always enjoyed math, and Economics is a more practical application of the subjects I enjoyed.I discovered my interest in Finance through the upperclassmen that major in Economics. A ton of them go into Finance, and it seemed like a good fit for me – I’ve always enjoyed working with numbers and more analytical problems. So I joined a finance group on campus, where I got to learn the basics of finance and valuation.For my junior year internship, I decided to try Private Wealth Management. I thought it would be a good blend of the finance I was enjoying, and plenty of people interaction. While I had a great summer, I realized the balance wasn’t exactly what I wanted. I wanted a bit more analytics / financial modeling, and a bit less sales.I think investment banking will be a better blend, where I get the hard financial modeling skillset I want. In addition, I think a middle market bank like Lincoln is the perfect fit for me, since I would still get more interpersonal interactions with the clients and the small deal teams than I would at a bulge bracket bank.

16. Being prepared to answer many different “why” questions will help interviewers understand your motivations16OpeningBehavioralTechnical RandomClosingWhy…Question examplesAnswer the variety of why questions with short, structured responsesResearch and networking are important for acing why questionsHow to answerShort, straightforward responses (~30 seconds)Demonstrate understanding of market / companyShow passion for the work Show structure and logic (never haphazard / random)Can address many of these questions directly in your story, to avoid being asked laterWhy investment banking?Why this firm, specifically?Why this industry coverage team?Why this city?Why did you switch jobs in the past?Researching a company can help answer many questionsOnline research can help you understand the basics (offerings of the company, focus areas, etc.)Employer information sessions also offer great opportunities to learn from company presentationsNetworking is the best tool for effectively answer why questionsPeople that have worked for a company are great sources of information (alums, upperclassmen, etc.)Can test questions on them to understand their responses (“why did you choose bank A over bank B?”)Can test early versions of your answers on them

17. Behavioral questions let you sell yourself and show structured thinking17OpeningBehavioralTechnical RandomClosingWhy…Behavioral questions overviewQuestions that ask for stories where you’ve displayed a certain characteristic (tell me about a time when…)Answers should be structured and concise (~1-2 minutes uninterrupted)Pick stories that are interesting and sell your unique qualificationsContextStoryResultsDescriptionSample Parker StoryBegin by setting the context and details of the situation; important not to jump to the details too quicklyEvents of the story itself, focused primarily on your actions and behaviorsSummary of the results of your story – did the project get approved? Did you get a good review?Our business is almost entirely US-based, and I was asked by my boss to assess the viability of expanding into the UK market. This was an extremely unstructured problem, as I could choose any products / services and any approaches to entering the market. Initially, we decided to understand the customer dynamics in the UK and, importantly, how those differed from the US. Next, we assessed the competitive landscape of the market. Lastly, we created a feasibility plan for porting our solutions over.We found that UK hospitals actually had many of the same problems as US hospitals, despite the single payor structure. We ultimately decided to bring just our consulting services to the new market, followed later by technology – since software would be expensive to create in the new market. My role was to pitch the opportunity to senior management within my company…Ultimately we received approval to bid on the targeted government contract. I left the company to come to school right after we submitted, but I actually recently found out that we won the bid – which led to the creation of a $XXM business in the UK to serve as a beachhead for future expansion…Similar to the STAR format

18. You only need three great stories to answer most behavioral questions, but a few backups can help18OpeningBehavioralTechnical RandomClosingWhy…Important to craft ~3 “A” stories that you feel confident in answering most common behaviorals withCan also practice ~3 “B” stories, to ensure coverage for any less common behavioral questionsPractice is crucial! Practice all stories enough to be able to confidently deliver and customize to different question typesSample behavioral questions and practice gridCommon behavioral questionsTell me about a time when…“A” Story 1“A” Story 2“A” Story 3“B” Story 1“B” Story 2“B” Story 3you worked on a teamyou failedyou performed a detailed analysisyou had to learn something quicklyyou convinced someone to change their mindyou had to work effectively under pressureyou had to work long hoursyou set a goal that you ultimately achieved

19. Preparing for technical questions important to show knowledge and passion for investment banking19OpeningBehavioralTechnical RandomClosingWhy…AccountingThere are several common sets of technical questionsPreparing for technicals shows passion and interest in the jobWhat are the three statements?How do they link together?Where does SG&A fall on the income statement?Describe the cash flow statement?Walk me through an increase in depreciation by $10?Doing well in the technical portion of the interview is not just about knowing finance – bankers use these questions to gauge interest and passionBe energetic and don’t look like you dread the questions!No need to strive for perfection or memorize answers, conceptual understanding is more importantWharton students may face a slightly higher bar, as there is an assumed level of knowledge about financeValuationStrive for conceptual understanding of technicals, rather than memorizationHow can you value a company?What is a DCF?How do you calculate free cash flow?Which methodology gives the highest value?How would you value this [random object]?

20. How to answerHow NOT to answerAll interviewers like different questions, so it’s best to prepare for any you might see20OpeningBehavioralTechnical RandomClosingWhy…Sample question typeStrengthsWeaknessesPitch yourselfFutureExampleUnderstanding bankingWhat are your biggest strengths? (and veiled versions of this)What are your biggest weakenesses? (and veiled versions of this)Why should we take you over the other candidates here?Where do you see yourself in five years?Describe the role of an investment banking analyst?Give 2-3 examples of honest strengths and short stories to back them upBe overconfidentGive testable strengths (“I’m great at Excel”)Give 2-3 examples of honest weaknesses and short stories to describe how you’ve fixed themGive strengths (“I work too hard”)Use important weaknesses (“I can’t work after 5p”)Succinct description of strengths, focusing on what differentiates you from most applicantsBe overconfident (“smartest person here”)Bad mouth other candidatesGive realistic goals that match the career paths of other bankers (PE, MBA, possibly Banking Associate)Insist you’ll be a banker for lifeBe too firm and explicit (ok to not be 100% sure)Provide simple, straightforward explanations for the role of bankers (need to speak with bankers to understand these!)Guess when you don’t know (it’s ok to not be 100% sure)

21. Always have 2-3 questions prepared for your interviewer21OpeningBehavioralTechnical RandomClosingWhy…Questions about interviewerWhy these questionsExamplesQuestions about bankGives the most insight into a person and the bankAbility to test own assumptions about interest in careerPeople love talking about themselves!I’d love to hear a bit about your background and how you ended up at [bank]?Why did you shift from [industry A] to investment banking?What are some recent deals that you’ve enjoyed working on?Can learn about culture and workstyle of bank to ensure fitInsider perspective much more informative than website and presentationsHow has the culture here differed from your previous job?When do you switch from a generalist to an industry specialization?How does ABC team differ from the bank more broadly?Questions NOT to askDetails about work and finance (how do you calculate WACC?)Questions that are answerable on the website (what industries do you cover?)

22. Take the time to map out a preparation plan for banking interviews22My bucketsHow to prepAmount of timeOpeningBehavioralTechnical RandomClosingWhy…HIGHMEDHIGHHIGHLOWLOWCreate chronological story, understanding various “beats”Practice with friends or in front of mirror until you can deliver confidently in 2-3 minutesUnderstand various motivations for past and future choicesTest with friends or current professionalsCraft 3 “A” and 3 “B” storiesPractice until able to deliver confidently in 2 minutesPractice adapting answers to various questionsStudy basic accounting and valuation conceptsPractice answering most common questionsRead some more advanced technical questions / answersMemorize 2-3 strengths / weaknesses and stories associated with themThink through answers to other questionsNone necessary!

23. Presentation Topics:23Overview of banking interviewsFormat and strategies to ace the interviewOther resources

24. Many other resources have advice about optimal networking tactics and strategies24Mergers and InquisitionsBlog with recruiting advice for breaking into investment bankingSeveral articles on networking (how to approach information sessions, what to ask during informational interviews, etc.)Additional resources for interview prep and non-IBD recruiting as wellWall Street OasisForum with dedicated rooms for banking, sales and trading, etc.Significant amount of quality content and advice – but have to weed through equally significant amount of bad content and advice; be careful!Career ServicesCareer advising appointments can be used to discuss networking approach and strategyMock interviews with career services staff for in-person feedbackMany more!Countless articles, books and websites dedicated to advice on networking and interviewingNetworking can be used in more contexts than just undergraduate recruiting – many of these resources can help!

25. Case Study: Sometimes you have to be persistent to make connections at target companies25Identify companyAlumni databaseLinkedInCompany websiteInitial conver-sationRecruiterTargeted healthcare companies based in Boston, preferably large / publicKnew of Thermo Fisher (“TMO”) from previous roles, included on listSearched myPenn for Wharton or Penn graduates in business roles at TMOOnly found engineers or other technical positions – chose not to reach outSearched LinkedIn for Wharton or Penn graduates in business roles at TMOFound a few, but did not get a response after multiple emailsFound page on TMO website detailing MBA program with stories of successful “alumni” of the programReached out to alumni to schedule informational interviewSpoke with alumni of MBA rotational program to decide if company and role was a fit for meAsked for connection to HR recruiter for programSpoke with HR recruiter to ask more logistical questions about program (geographies, rotation lengths, etc.)Left door open to ask for interview down the roadFind contactsAsk for meetingHave meetingFollow upOther tactics

26. You should carefully track your emails so you can follow up and move on to different contacts when necessary 26Find contactsAsk for meetingHave meetingFollow upOther tacticsEmails per weekFollow up if no responseMove on to next contact at companyFollowing rough guidelines for emails will help maximize response rate and ensure you’re not overwhelmedTracking your emails is important to time follow ups appropriatelyDepends on how much time until you’d like to interview5-10 contacts per week is a fast pace (~50% hit rate)Wait 1 or 2 weeks to reach back out if you don’t get a responseSend very short email to ask for time again (<20 words)Immediately after follow up email, reach out to next contact at companyTry to reach out to 1 person at a company at a time, unless they’re very largeTrack contact list, email dates, and follow up dates to ensure you’re meeting your goals and following up at appropriate intervalsCan use Excel or more advanced softwareImportant fields to track: contact name, company, location, email, email date, follow-up email date

27. There are a few goals and tips to keep in mind during an informational interview27Find contactsAsk for meetingHave meetingFollow upOther tacticsMake a good impressionBe conversationalBe genuineLearnGather adviceGoals of informational interviewBehavior tipsIdeally you want the person to like you so they might be willing to help with a recommendation or point you towards opportunitiesWant to show that you’re hardworking, smart, inquisitive, and other positive traits for the jobBiggest goal is to learn as much as possible – about certain career paths, industries and rolesInformational interviews can help you critically assess certain career choices, and help break you from the herd mentality that can existExperienced professionals are able to give you helpful career advice for multiple stages of your life – they’ve (probably) been there before!Ranges from networking advice, interview prep, to even resume feedbackDon’t lie or hide the truth of your motivations and goalsIf you would like a job at the company – be up front about that goalIf you just want to learn and explore – let them knowDon’t treat the meeting like an interview (despite the name)Take a more relaxed and casual toneEngage back and forth with the contact; interject with your own stories; etc.

28. There are several common mistakes that people will make during informational interviews28Find contactsAsk for meetingHave meetingFollow upOther tacticsToo formalTreat informational interviews like a conversation, not an interviewNo need to wear business formal (for the most part)Also don’t go too casual (casual clothing, too many personal anecdotes, etc.)Specific / difficult questionsPitching too aggressivelyPretending to be preparedKeep questions broad and general, and focus on the why behind answers (why did you choose this company, why did you enjoy that project)Do not try to test the contacts knowledge or ask questions you don’t genuinely want to know the answer to (how do you calculate WACC?)Have your “pitch” prepared as a quick overview of your background, but don’t pitch yourself too aggressivelyCan come across as non-genuine (asked for advice, but then you pitch like it’s a job interview)Do not pretend to have knowledge about the company and industry you do not haveIt’s ok to not be an expert on the company / industry – but don’t pretend to be if you’re not, be honest!

29. Penn also offers other resources for networking that students should take advantage of29Find contactsAsk for meetingHave meetingFollow upOther tacticsCareer fairsCoffee chatsSimilar to information sessions, career fairs offer the opportunity to learn a little about several different companies and develop contacts for informational interviewsDon’t spend too much time with any one employerDo collect business cards and reach out to people after the eventPenn offers opportunity to sign up for 1-on-1 or 2-on-1 coffee chatsOperate exactly like informational interviews, offering you a great opportunity to make a good impression, learn about the company / industry, and get career adviceSign up for as many as possible! Great opportunities to expand your network