Video Interview Questions: Draft 1 PDF

[Walk me through your CV? ] [WHY DO YOU WANT TO WORK AT THIS FIRM?] [Why Investment Banking?] a. I have always been interested in investment banking because: - One of my father's closest friends is Head of Research at Redburn (equities broker), growing up I had many conversations with him...

[Walk me through your CV? ] [WHY DO YOU WANT TO WORK AT THIS FIRM?] [Why Investment Banking?] a. I have always been interested in investment banking because: - One of my father's closest friends is Head of Research at Redburn (equities broker), growing up I had many conversations with him about finance, and how the different component of the industry interlink - It was during these conversations that investment banking was talking about = sparking further research. - Reading various books from the university library - Online research During which I found out: b. **I Possess the right attributes needed to succeed:** - Strong analytic, data and numerical skills - Good communicator - Unquestionable work ethic and drive - Curious and proactive - Team player c. **The nature of the job interests me:** - The technical side as an analyst**:** - Learning the different methods to value a firm (3 methods) and producing reports - Learning how a leveraged buyout takes place and the financial models behind LBO's - The entrepreneurial side further up the chain: - Spotting potential companies that could be acquired and presenting them to buyers (Buy side (M&A) - Learning how to optimise the value of a company of the sell side of M&A (potential to mention father -- as he was thinking about growing his business) 4. [Why should we pick you?/tell me a bit about yourself?] - I think I possess key skills needed to make it in the world of investment banking: a. **Strong communicator** **+ leader** - ability to organise and lead effectively - A good delegator = spotting what people are good at - Good interpersonal skills b. **Strong work ethic + self-motivated** - I can guarantee I will always be the hardest working person in the team - I believe that success is 80% work ethic 20% natural ability - Not scared of a challenge c. **Very curious and proactive** - If I don't fully understand something, I will ask questions and carry out my own personal research until I understand every aspect of what I am doing -- evidence by teaching myself further maths. - This allows for better innovation and organic thinking d. **Team Player** - I am aware that in the world of investment banking a lot of work will be carried out in teams - As a leader I always try to make sure everyone feels their opinion has been heard before a final decision has been made - Self aware e. **Willing to develop weaknesses that may arise** 5. [What does an investment banker do?] a. **Mergers and Acquisitions** - *Sell Side M&A* - Find buyer for candidate - determining a reasonable asking price + value maximisation - structure of the sale + conduct negotiations = smooth +quickly as possible - either through action - or negotiated sale with a single party - post-merger integration - *Buy Side M&A* - Find acquisition candidate - Value of the company being acquired - Comparable companies' valuation - Precedent transactions valuation - Discounted cash flow valuation - Connect with a buyer and find best way to structure the offer. - Post-merger integration b. **Raising Capital:** - *Equity Finance* = Underwriting (IPO) = selling stocks to investors - creating a prospectus that explains the company and the terms of the stock offering - handling all necessary legal and compliance issues with the appropriate financial regulatory body - setting the initial stock price - *Debt Finance* = taking on a loan = selling bonds to investors - *E.g. Leveraged buyouts* - using debt to finance a large proportion of purchase price 6. [Please highlight a recent news event that has been of interest to you and explain why (200-word limit)?] a. **\"Investment banks are losing their grip on IPOs\" written in the Financial Times**. - led me to question the importance of an Investment Bank during an IPO. - Spotify and Slack have taken another route to cut out the intermediary = **direct listing** - which the company raises capital from the public without intermediaries, reducing fees and cutting out the \"inflexible commission structure\". - the introduction of new technologies allowing for comprehensive business reviews or YouTube videos to reach all means that private companies can now access capital not only from the usual customers for IPOs (mutual funds and hedge funds) but from the public also. - However: are still the obvious needs for an Investment Bank in this situation - **Less high-profile** businesses will be unable to manage for themselves and do not possess the contacts or reputation in the marketplace to raise a lot of capital. - **Management without a lot of cash** on their balance sheets might lose their nerve, and thus having an Investment Bank behind them may help them go through with the IPO. 7. [Describe a recent M&A transaction you followed in the news. What were some of the most interesting aspects?] a. **Uber's takeover of Careem -- its middle eastern rival, with Jefferies being the financial advisor.** - \$3.1 Billion overall - \$1.7 Billion of convertible notes - \$1.4 Billion in cash - Expected to close Q1 2020 - Has increased Uber's expected IPO to \$120 billion GET MORE DETAIL 8. [What are the recent M&A trends?] a. 2018 marked the fifth consecutive year of above \$3 trillion in annual mergers and acquisition volume Trends: a. OVERVIEW - Despite: - Turbulent political landscape - Questions of trade and tariffs - the strategic importance of M&A has never been higher, given the difficulty of getting growth organically b. **Increase in Corporate Streamlining = consolidating core businesses**: - Less M&A capital to parts of companies lying outside of core values - Especially in Europe - Potentially stimulated by uncertain political landscape = defensive cost saving mergers c. **Constant Capital Availability** - Despite increasing interest rates - Never been more private equity funds available for M&A deals - Perhaps supported by strong liquidity across debt and equity markets d. **Technology will remain dominant** - Potential new wave of tech IPO's = fuel capital flowing into M&A = want to grow rapidly r - UBER - See other list 9. [What is a major event you have followed recently, how will affect markets and the role you have applied for?] 1. **Intel\'s \$15.3 acquisition of Mobileye, an Israeli Tech Company** - providing technologies for driverless cars (ADAS), including machine learning technologies and computer vision - The rapidly growing industry of driverless technologies is one of unbounded potential, and if Intel can corner this market early and get a strong foothold, establishing a patented technology, they could be set to make billions of pounds. - That being said, this market is hotly contested with companies such as Uber investing heavily in similar technologies in the hope of being the first to develop the first fully autonomous vehicle. I think the true potential of this merger will be realised in the next 2-5 years, and it is a story I will continue to follow. 10. [What are you weaknesses?] I would say my main weakness is impatience if someone doesn't do something in time: - Personality of never liking to be late, always on time - Its something I need to improve on as sometimes deadlines will not be met in IB 11. [Give me an example of a time when you had to communicate a technical piece of information to an audience of mixed technically minded and lay people?] a. **Presenting my EPQ** - After writing my EPQ on how fiscal policy affects Americas inequality I had to present to a classroom full of my peers, none of whom knew the first thing about fiscal policy or economics - I have to break difficult terms and theories down into processes which could be understood by anyone. - Had to also condense 22000 words into a 25-minute presentation = a skill useful in the Investment Banking industry. - I always believe that if you can't fully explain something to someone who knows nothing about the topic at hand, then you do not know your material well enough. 12. [Describe a situation when you had to resolve a work-related problem?] a. **Rugby bullying** 13. [Can you tell me about a time when you have worked on a project or piece of work as part of a team?] a. **Working at the BBC:** - **Shadowed Simon Jack, the BBC\'s Business Editor** - **Worked as a team to produce a PowerPoint presentation exploring the quantitative and qualitative changes to the UK economy 10 years on from the Financial Crisis.** - **Was aired on BBC news at 10** 14. [Describe a time when you had to meet tough targets or complete a challenging task in difficult circumstances?] a. Challenging tasks in difficult circumstances: - **Grandmother passed away 3 days before my Cambridge Interview** - Was a very tough time in which I had to suspend my emotions in order to remain focussed - And in the end I got the place, which I knew would have made her very proud. b. Meeting tough targets: - **not necessarily targets set by others but by me** - Attaining the highest grade possible in all of my examinations - Getting an offer from Cambridge to study economics 15. [Give me an example of a time when you have planned a large project or piece of work?] a. **Producing my EPQ:** - Over 20 different books read to produce a 22000 word project - Alongside 5 other a levels at the time - Including statistical analysis - Produced at the age of 17 16. [Can you tell me about a time when you have persuaded someone around to your idea or way of thinking]? a. **Debate with my microeconomics professor during a 1:1 supervision:** - We were solving a microeconomic utility maximisation problem set - She disagreed with my alternative methodology, but I slowly worked my way through it and arrived at the same answer as her - My method took less time and was more efficient, and she had not seen it before - She told me she would adopt that shortcut and teach it to students in the future 17. [Describe a situation when you have introduced a new idea at work?] a. **See above** 18. [Describe a time when you have taken a leading role for others?] a. **Most recent: Playing 10 for the University First team** - As a 1^st^ year - Running, creating and implementing new moves strategies - Leading a team where the average age is over 24 with many post graduate students b. **What I learnt:** - It is not only talent but work ethic that can earn you respect from your superiors - How to work in a team where you might have the least experience, but are willing to learn 19. [What is your biggest achievement so far? (academic, non-academic)] a. **Academic:** - Gaining a place at Cambridge university = culmination of a lot of hard work - 99% Maths a level, 98% in further maths a level b. **Non-academic** - ethos of inclusivity into senior rugby at school = removing the bully culture 20. [Talk me through a time where you had to solve a problem in an innovative way]. a. **Supo example** 21. [What\'s the hardest problem you ever encountered? How did you overcome it]? a. **Addressing the bully culture of senior rugby** - As it was my peers and friends in my year group that were bullying younger members of the team - As that was what tradition had become - Had people who weren't even good rugby players bullying younger kids - Solved it by: - Not by explicitly confronting the bullys, which could potential endanger my position as captain if they did not receive me well - But by introducing more aggression into training sessions + having 1:1 sessions with those who were badly affected - Allowed a level playing field = problem solved. 22. [Describe a situation that required you to overcome substantial obstacles or adversity. What approach did you take to overcome though? What motivated you to persist? ] a. I know it sounds slightly melodramatic but: **breaking my hand two weeks before my 1^st^ year finals:** - being such a motivated individual, the months of preparation for those exams and the sacrifices made all went to waste, which made me feel very dejected and low for a period of weeks - not knowing if I was going to be able to re-join the university I had worked so hard to get in to. - turned my focus to learning more about investment banking, and pursuing my career instead of academia 23. [You have been assigned as the lead on a project involving employees from multiple teams. This is a unique opportunity and you want to ensure it is a success. However, the deadline is very tight given the amount of work involved. Your responsibilities include coordinating efforts across the various team members, as well as working with the client to ensure you meet their needs. What steps would you take to ensure the success of the project? ] a. **Hold a meeting with everyone involved** b. **Verbal pitch for who wants to do each role (speed)** c. **Delegate the different tasks among individual best suited to each role** d. **Construct strong communication links across different areas** e. **As leader:** - Set achievable objectives for each member with time frame - Offer to assist each member - Steer the project in the right direction f. **Offer incentives for efficiency and quality**: - Whether monetary or by time off g. **In terms of client:** - Meet with him etc. 24. [Tell me about a time when you have had to turn down a project or opportunity because you had a conflict or competing deadline. What were the competing priorities that you were facing? How and when did you decline the opportunity or project? What was the result of turning it down.] a. **Turning down geography A-Level after 6 months of study** - I'd just completed a 12'000 word piece of coursework when I got my offer -- no geography needed on the offer - Had to decide between 5 a levels and might not make the grades needed - Or 4 a levels, and much easier to get the necessary 3A\* to get into Cambridge - Result was I got into university, but I regret not taking the exam as it was v interesting. 25. [What are the benefits of raising equity and what are the benefits of raising debt? (Asked in IBD interviews)] 26. [Can you tell us about a time you had to resolve a conflict at work? How did you achieve that? What happened?] a. **Rugby example = reduce bullying** 27. [What interests you about current affairs now? Why?] a. **Middle eastern conflicts** 28. [Which two companies do you think should merge and why?] a. [Apple pay and Inamo:] - Inamo: - New 2019 fintech start up - Allows you to pay with a little robber band you attach to your watch - Meaning you don't need your phone (apple pay) or your wallet - Could be the key technology needed for the watches to be fully autonomous - At the moment you need to log in with your phone to pay through the watch - This new tech could make the watch fully autonomous b. [Microsoft and Amanote:] - Amanote: - Allows you to download lecture notes and type next to it - In an easy to use platform - Microsoft does not offer this service - However, it lacks the ease of use of Microsoft - If Microsoft could purchase this technology, and then update it using their already made code, they could charge a subscription to this new service = could be used by millions of students. - Could make it a finished product c. [Intel and FiveAI:] - FiveAI: - New start-up producing the software needed for driverless cars - Intel have recently bought Mobileye -- Israeli software company specialising is collision avoidance -- buying FiveAI could allow them to pool their resources, leading to synergies which could help pursue the future of driverless cars quicker d. [Google and Travis:] - Travis: - New AI start up = allow real time speaking of different languages - Very accurate real time translator using AI - Could implant its software into it's google translate app - As their real time translation is not that accurate 29. [Is Facebook overvalued? ] Value: - Facebook\'s enterprise value is \$484,699 Mil. - Google\'s enterprise value is \$734,987 Mil - Apple\'s enterprise value is \$1,081,280 Mil. Profits: - Facebook: Net income Q1 = \$2.429 Billion - Google: \$6.7 - Apple: \$19.9 - I think this gives a broad understanding that the value of Facebook is in the correct ballpark 30. [How would you value Uber?] 31. [What is a synergy? ] - Occur when two firms merge, and costs can be cut - For example, merging headquarters - This leads to cutting costs, whilst keeping revenues the same, increasing profits. 32. [What is your biggest weakness?] 33. [What is a major event you have followed recently, how will affect markets and the role you have applied for?] 34. [What deals have you most recently been interested in?] 1. **Intel\'s \$15.3 acquisition of Mobileye, an Israeli Tech Company** - providing technologies for driverless cars (ADAS), including machine learning technologies and computer vision - The rapidly growing industry of driverless technologies is one of unbounded potential, and if Intel can corner this market early and get a strong foothold, establishing a patented technology, they could be set to make billions of pounds. - That being said, this market is hotly contested with companies such as Uber investing heavily in similar technologies in the hope of being the first to develop the first fully autonomous vehicle. I think the true potential of this merger will be realised in the next 2-5 years, and it is a story I will continue to follow. 2. **Uber's takeover of Careem -- its middle eastern rival, with Jefferies being the financial advisor.** - \$3.1 Billion overall - \$1.7 Billion of convertible notes - \$1.4 Billion in cash - Expected to close Q1 2020 - Has increased Uber's expected IPO to \$120 billion 35. [What industry do you follow? ] Technology, RECENT DEALS: 1. [UBER + CAREEM] 2. [FIS acquire World Pay - \$35 Billion] - made it the largest financial infrastructure company that underlies the bank payment system - allow them to establish a stronger position in the ecommerce industry - Now world leader in financial infrastructure 3. [Facebook acquiring CTRL-Labs] - Start-up developing a brain to computer interface, using a platform and a wristband - Will probably happen over this coming year for around 1 -- half billion - Could create a whole new industry for Facebook 4. [Github (software development business) acquiring Semmle] - Software development start up = built analytical tool for software development = help them grow their business and make it easier for developers to build and share software - Used by UBER, NASA, Microsoft 5. [McDonalds acquired Apprente and Dynamic Yield] - To automise their drive thru's = very interesting 6. [Mastercard acquired NETS -- 2.85 Bill Euro] - Nets = Danish payments platform - Allow them to bring real time payments into reality 7. [Apple aquires Intel's Modem business for \$1 Bill] - Help the company lower the cost of providing a 5G service = cutting out fee's from apple to intel - If apple can gain a 5G connection first will eliminate competition [OTHERS:] - Can you talk about your experience of changing your approach quickly to achieve a goal? - What unique experiences and expertise could you bring to our team? - One of the questions asked were what are the greatest challenges the financial services industry will be facing in the next 5 years! - What is your 5 year career plan.