In the spirit of adding some interactivity to this site, please post your comments and suggestions. Also, feel free to post your questions about investment banking and I will try my best to answer them.
-Andrew
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Comments / Suggestions / Questions…284 comments to Comments / Suggestions / Questions… |
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Hi Andrew,
First of all, I love your site – so much information and tips.
I started working for a bulge bracket bank in their Technology division 6 months ago, but soon became interested in ibanking and want to make the switch. I’ve been doing some research and heard it’s hard to move from a back office role to front office – is this true? What would be the best way to transition my career at this point? Even if i was to get my MBA, how would I break into IB after working in the back office?
Thanks so much,
Katy
Katy,
Unfortunately, it is very hard to switch from bank office to front office. If you go to a top business school for your MBA, you should have a great shot at making the transition. Most MBA students targeting ibanking are career switchers, either from something else in finance (i.e. your situation) or something totally different. Without the MBA you can try to network you way in to a front office position within your current bank or at other banks. But it definitely will be a challenge.
what is the effect of increase in working capital on cash flows.
what is the impact on cash flow if depriciation changes from 10 years to 5 years
Hi Andrew,
Many thanks for this great site
On a resume; it is acceptable to use semi-colons instead of commas for words separation in 1 bullet sentence, Dummy example:
examining micro/macro-economic factors; SWOT analysis; share performance analysis; comparable company analysis; Porter’s 5 forces analysis; financial performance analysis
Keeping in mind, those are minor tasks for a univ project therefore no need to illustrate further on each point. I have quite few bullets with lots of independent words like the above example, not sure if that’s okay or I should revert to the comma instead.
Appreciated
All the best for the New Year
Jason,
Commas are more widely used in those circumstances, and would be my personal preference. However, I don’t think anyone will ding you for using semicolons.
Hi Andrew,
is there any material to prepare for GCM (ECM and DCM) positions? Is there anywhere where I can check deals?
Nico,
I’m not aware of any but you might want to try http://www.mergersandinquisitions.com. That site often has blog posts related to specific groups. Generally speaking, ECM and DCM interviews are less technical that traditional IB interviews and more markets related. To check deals (and what banks executed them), you would really need a paid resource such as Capital IQ.
Hi Andrew,
I bought the self study program (Integrated Cash Flow Model) and found it very very good, it realy helped me, thanks for such a great program. You also mention in the presentation that other models such as DCF, LBO and M&A can be built on the Integrated Cash Flow Model. Do you currenty (or in pipeline)have self study programs for building these models
Sukhveer,
Thanks very much for your kind feedback on the self study program. I’m really glad to hear that you found it useful. Unfortunately, I haven’t put out any additional self study models. I had intended to, but got sidetracked by other projects. Sorry!
Hi Andrew,
I just had a quick technical question. Company A is buying company B in an all stock transaction. Compant A is offereing 0.5 of its shares for 1 share of company B. They both have the same P/E ratio. Is this accetive or dilutive?
Thanks!
Other things equal, in all stock deal if the P/E ratios are the same, the deal is breakeven (neither accretive or dilutive).
Hey Andrew!
Congrats on this! Wish I had run into it earlier… Keep up the good work!
Hi there and congrats for the website, mess I did not find it before!
Here you are a technical question: let’s say BankA and BankB (both non listed and fully owned subsidiaries of bigger banking groups) want to merge.
How do I calculate the capital impact (Regulatory Cap/RWA) at BankA GROUP Level, assuming BankA decconsolidates from its group?
I have two options I’m working on, on the two of them RWA is not in discussion and is calculated by subtracting BankA RWAs from its GROUP total, the tricky part comes with Numerator:
Option A: Value of BankA – TCE of BankA
Option B: Value of BankA – historic price of BankA
I know the calculations needs some more “fine tunings”, but this is definitely the main driver.
Thanks in advance
Hi Andrew,
Thanks for the great site and I definitely appreciate it.
Recently I came across a difficult question in my interview, “If you can have only one financial statement, which one will you pick and why”. Do you have any idea regarding this? I did some research on google but it seems people have different answers.
Many thanks in advance.
Best Regards,
Joey
Joey,
I hate this question. It is a stupid question. And to be frank, I have no idea what the answer is because you would never ever do any analysis with just one financial statement. But okay, if you are asked this in an interview, you need to answer it. I would say the following: First, it depends on the situation and the type of company. If I were analyzing a financial institution such as a bank, I would say the balance sheet (though in today’s world, nobody on Wall Street can get a good understanding of a bank’s financial position given all the derivative exposure and off-balance sheet stuff – but that’s a discussion for another time). For most other companies/industries, I would likely want the income statement to get a quick understanding of revenue growth, margins and profitability. That’s the best answer I can give you.