Overview of Finance Recruiting
March 20, 2013
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What is Finance?
Sell Side
Trading,
Treasury and
Markets
Buy Side
Investment
Banking
Alternative
Investors
Traditional
Institutional
Investors
Recruiting Programs
INVESTMENT BANKING ANALYST
•
Advisory (M&A, Divestiture, Restructuring), Capital Raising (DCM, ECM)
•
Product Groups: M&A, DCM, ECM. Coverage groups: Metals & Mining, Oil & Gas, Real Estate, Diversified, TMT
•
Typically 2-year program, with an option to sign back as a 3rd year, then direct promote to Associate
•
Many people choose to pursue MBA, Private Equity, Corporate Development
CAPITAL MARKETS ANALYST
•
Helping clients with capital market transactions – Sales, Trading, Structuring, Securitization, Macro Strategy, CIO
•
Often, DCM, ECM, and Research are under it too
•
Fixed Income (Bonds, MBS), Currencies (FX Cash, Options, Structuring), Commodities (Physical, Paper, Derivatives, Structuring), Equities
(Cash, Options, Structuring)
•
Typically up to 1 year rotational program with an offer to a specific desk if offered– NOT GUARANTEED
INVESTMENT MANAGEMENT
•
Portfolio management, relationship investment, private equity
•
CPPIB, OMERS, OTPP, Birch Hill, ONCAP
Recruitment Preparation
Before recruiting season:
Recruiting Checklist
•
Reach out to 3rd and 4th years that have secured positions in finance roles (your objective should be to learn more about the industry and
job)
•
Consider reaching out to alumni from committees and conferences you may be involved in
•
Sign up to be a volunteer for Career Launch for September 2013 (applications are sent out during the summer by the BCC)
•
Get educated about the industry (See interview prep resources)
•
Ask for Mock Interviews (QUIC or from peers)
•
Possibly attend recruiting info sessions (keep in mind that these are targeted to 3rd and 4th students)
Interview Prep Resources
•
Interview guides including Vault Guides (available through myCareer), WSJ Guides
•
Weekly QUIC Meetings and website resources
•
General market news (FinancialTimes, WSJ, The Economist, Factiva)
November 2012 (3rd years going on Winter exchange)
MONDAY
5
TUESDAY
6
WEDNESDAY
7
THURSDAY
FRIDAY
1
2
8
9
SATURDAY
SUNDAY
3
4
10
11
CIBC Info
Session
Info Sessions
12
TD Info Session
19
13
UBS Info Session
20
14
Scotiabank Info
Session
21
Morgan Stanley
Info Session
Info Sessions
22
16
17
18
24
25
Credit Suisse
Info Session
23
First Round Interviews
Goldman Sachs
Info Session
Info Sessions
26
15
Final Round Interviews
27
28
29
30
BMO Winter
Application Due
Select Winter Term Banking Applications Due
Note: Not all banks are represented (CPPIB and Deloitte Financial Advisory hire in early September; boutique firms hire
throughout the semester
December 2012
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
22
23
29
30
Select Winter Term Banking Applications Due
17
18
19
20
21
Select Winter Term Banking Applications Due
24
25
26
27
28
Credit Suisse
Winter
Application Due
Select Winter Term Banking Applications Due
31
January 2013
MONDAY
TUESDAY
1
WEDNESDAY
2
THURSDAY
3
FRIDAY
4
SATURDAY
SUNDAY
5
6
11
12
13
18
19
20
Select Winter Term Banking Applications Due
7
8
9
10
Info Sessions and Applications Due
14
15
16
17
Final Round Interviews (Toronto)
First Round Interviews (Queen’s / Phone)
21
22
23
Super Saturday
24
GS Superday in
NYC
28
29
30
31
25
26
27
Interview Process
1st Round Interview
•
Takes place on campus, usually one interviewer, between 15-30 minutes
•
Focussed on behavioural and basic technical questions
•
Screening stage to gauge fit with firm culture
2nd Round Interview (“Superday”)
•
Takes place in office, meet various employees of all ranks, 3-4 hours
•
•
Interview with 1-2-3 employees at the same time
Focused on technicals; there is a behavioural component to every way you answer a technical question
•
Technicals are the pre-requisite; behavioural gets you the job
Interview Process Tips
•
Arrive early 10-15 minutes early; the interview starts when you are in the lobby waiting
•
Notify your interviewers in advance if there is a chance you will be late due to other interview rounds(avoid if possible)
•
•
Round 1 and 2 interviews may fall within the same day; manage your schedule accordingly
Have firms prioritized in advanced into 1-3 tiers; do not want to create inconveniences for your potential top choice employer
•
Some firms are more flexible are accommodating schedules than others (recognize the difference)
General Tips
Wining and Dining
•
Different form of interview but remains just as serious
•
Don’t be late; turn off cell phone; wear interview attire
•
Let the host lead in ordering appetizers and drinks; avoid “messy” meals
•
Do not speak with food in your mouth, take small bites as you will be likely asked many questions throughout the dinner
•
Be careful on consumption of alcohol; limit to 1 or 2 drinks for the evening, know your limits- reputation/job is on the line
Attire
•
Conservative colors: white, blue, black
•
Men: polished dress shoes, dark socks, conservative color ties that are well-put together, less cologne is better
•
Women: conservative dress shirts or plain blouses (preferably solid colored and non-patterned), black or charchoal suit, skirts should be
appropriate length (slightly above knee), heel height should be ~2.5 inches max (solid black, closed-toe shoes are preferred)
Travelling
•
This should be accommodated by your interviewer (bus, train, plane, hotel)
•
Make sure to send receipts shortly following second rounds, along with thank you notes
•
Follow-up if did not receive reimbursements in polite manner (can take some time)
Post-Interview Etiquette and To-Dos
Within the First 24 Hours after Final Round Interviews
•
Send follow-up e-mails if you are comfortable doing so and feel a strong connection with particular interviewers
•
This makes more sense for smaller offices such as a smaller global bank in Toronto
•
These e-mails should be customized and personalized in order to carry any meaning
•
However, follow-up e-mails are not required and many recruiters prefer not to receive any
•
Follow-up phone calls or personalized cards are extremely risky and mostly seen as overly-aggressive
Within the First 48 Hours
•
Typically, 80-90% of finance offers will be given within 2-3 days of the final round interview
•
Ensure your phone never runs out of batteries! Voice mail and caller ID are also absolute necessities
Within the First Week
•
If you have not heard back after a week, you are likely on the waiting list or rejected
•
Following-up for the last time after a week to inquire on the status of your application should be fine
•
Otherwise, just stay calm!
Offer Acceptance and Considerations
Offer Timelines
•
Deadlines to accept an offer can range from a few seconds to a month but will typically range from a day to a week
•
•
Global banks are typically less flexible and more likely to expect faster responses from candidates
Be careful to network and connect more strongly with recruiters in groups you would like to join (ie. M&A or TMT)
Celebrate but Never Renege
•
Do not accept an offer verbally if you have no intention of officially signing with the firm
•
Absolutely never sign an offer and renege to sign somewhere else as it will ruin your reputation
•
Make an effort to attend acceptance parties
Other Considerations
•
For summer programs, global banks have 8-10 week programs and domestic firms typically have 16 week programs
•
Return offers for summer analysts will typically be given during the last 2 weeks and will typically last for a few days
Rejection Recovery
Alternative Avenues for Summer Hiring
•
Different firms may recruit in January and not November
•
Different opportunities with smaller boutique investment banks or investment managers are always available
•
Roles at commercial banks, marketing firms, and various corporations exist so be creative!
Re-Recruiting for Full-Time Positions
•
Although more challenging, full-time recruiting is always available
•
Most firms will begin informal recruiting for full-time hires as early as the summer, typically in July and August
•
Retaining strong connections becomes imperative at this stage
•
There will often be exclusive information sessions hosted during the summer
•
Be subtle with your intentions when recruiting during the summer work weeks
Appendix
Types of Interview Questions
Broadly speaking there are 3 types of questions, market-based, behavioural, and technical.
Market Questions
•
Read as much as you can, as often as you can, stay on top of current and events and the market and develop your own opinions
•
Have 3 stock picks, 1 short, 1 LBO, a recent M&A deal, and a recent IPO that you can speak about in detail
•
Have a well thought out view on the overall economy but also have somewhat of a view on the many parts of the economy – major
economies, commodities, housing. Make sure these tie in with your overall view
•
Have a solid understanding of all things Europe, quantitative easing, and how the financial crisis occurred
Behavioural
•
Do not make the mistake of thinking these questions do not require preparation
•
The answer you give to “Tell me about yourself?” or “Walk me through your resume” is likely to be your first impression on your
interviewer and one of your most important answers
•
Know strengths and weaknesses, 3 for each but the more you have the better. Also this question is often asked indirectly
•
Try to have a series of experiences or stories about yourself that highlight important qualities that you can speak to for a range of
different questions, If you find something that is also relatable to
•
I have found it beneficial to write out stories and important answers and practice saying them out loud
Types of Interview Questions II
Technical Questions
•
Technical questions are designed to test your knowledge of finance, to expose the way you think and solve problems, and even to see how
you deal with stress
•
How you answer a technical question can be more important than getting the right answer
•
You will receive technical questions you do not know the answer to no matter how well prepared you are
•
•
•
Do not try an make something up that makes no sense
•
Ask the interviewer questions if you feel more information could help you or are in need for clarification
•
If you still do not know, be honest and explain how you would consider approaching such a problem
•
Often your interviewer will lead you to the answer, this can be a painful process, stay calm and collected and do not get thrown
off for the rest of the interview
There are some common technical questions which you need to have a solid understanding of and a well polished answer, these are all
mentioned in the guides
•
What are the 3 ways to value a company?
•
Walk me through a DCF/LBO/Accretion – Dilution analysis
•
How do I calculate WACC, UFCF, LFCF, EV
•
Understand multiples, accounting questions; linking of financial statements
•
How do you value a privately held company?
You may be asked mental math, brain teasers and logic problems as well, again how you approach the question is the most important