Investment Banking Analyst Interview Questions - 3

16. What things would you consider before getting into an LBO transaction?

The things that you would consider before getting into an LBO transaction fall under two categories:

i.) Industry specific

ii.) Target specific

The industry specific things include - Type of industry, Competition, Cyclicality, Major drivers of the industry, External factors like economic/political/legal situation etc.

The Target specific thing include - Market share, Opportunity to grow, Operating leverage, Sustainability of operating margins, Margin improvement potential, Minimum working capital requirements, Cash required, Management's ability to work in levered environment etc.

17. What are the important skills required to succeed as an Investment Banking Analyst?

Investment Banks hire their interns and analysts with a view to promote them in future so that they can take up bigger responsibilities in future.

Some of the qualities you need as a person to succeed in an Analyst's role and grow further are:

i.) Excellent numerical and analytical skills

ii.) Good presentation skills - Both written and oral

iii.) Highly disciplined with an ability to work for long hours without getting tired.

iv.) Excellent knowledge of accountancy, finance and economics.

v.) High level of integrity - As investment banking professionals are privy to a lot of data about a client.

vi.) Respect for hierarchy - Investment banking is a hierarchy driven industry. You must be respectful of that to succeed in this profession.

vii.) Excellent communication skills - to present their findings to their associates and client.

viii.) Creative and Innovative to approach a problem from different angles

ix.) Proficient with computers - Especially spreadsheets and other database & analysis software

x.) Good at relationship building

xi.) Aggressive and persuasive - you won't need these much at a lower level but these are the primary qualities to be successful at higher roles in investment banking when you want to make a sell or clinch a new deal.