The key things to know for an interview about any out-of-court restructuring deal are the ultimate terms of the deal, how this has at least partly solved the company's problem (pushed out maturity wall, got rid of some cash interest expense, etc. Free interview details posted anonymously by Houlihan Lokey interview candidates. Hiring managers ask this question to learn more about your problem-solving skills and how you overcame a challenge in the past. Just study the 400 BIWS questions guide and you shouldn't be worried about technicals. Interview. Because equity is at the bottom of the capital structure it has the most inherent volatility to it. Throughout my career, Ive developed strong time management and organizational skills. For other groups, your realistic exit would be smaller mid-market private equity firms. This question is an opportunity to show the interviewer that you are motivated by more than just money. If you get the HLHZ restructuring group offer and you like the nature of the work, go for it. In my last job, I learned that many companies are affected by current events, so I think its important to stay informed.. This question is a great way to show your interviewer that you understand the role and responsibilities of an associate. Anonymous Interview Candidate in Los Angeles, CA, I applied through an employee referral. Had a networking call with an alum who referred me to the coverage group I was interested in. . Example: A typical day as an associate would start with me reading through emails from my clients, reviewing their financial statements and researching comparable companies in order to provide them with accurate valuations. When answering this question, it can be helpful to mention a specific project that you didnt meet the deadline for and how you handled the situation. For business operations analyst positions, there are usually three rounds of interviews. More Work. Questions will focus on your background and experience. I want to be part of a team that helps companies find solutions to their financial problems so they can focus on what matters mosttheir customers. I interviewed at Houlihan Lokey in Jan 2022. In this current climate, in 2021, healthy companies are actually able to refinance at incredibly low rates. What multiple would you use to evaluate these two companies and why? Salary is <200, TC <250, yoe about 10. I applied through college or university. Nothing much to say. next step is 30 mins with sr. hr manager and assessment is 1 hour. Online application combined with employee referral. Simply put, as a company gets more insights, the confidence of a "true score" increases so it is pulled closer to its simple average and away from the average of the entire data set. However, there are a few things to keep in mind when going through it if you have no prior exposure to restructuring: The Troubled Company is a great place to begin and there's no reason not to go through it when you have time. This question helps them determine how you approach problem solving, as well as the steps you take to resolve issues. Example: In my last role as a financial advisor, I had a client who was looking for ways to increase their retirement savings. . Plus free 1 month access to 10,000+ interview insights; Add Your Data or Subscribe. It's not as hard as expected. More realistically, if no restructuring has yet been done the price of equity reflects the fact that maybe the debt holders above (in this case the Senior Notes) really don't want the company to file. Be the first to find this interview helpful. When answering this question, it can be helpful to define residual income and explain how its used in the business world. CV and cover letter practice as well as interview practice. Est Annual Revenue: $500m+ Website. Almost no company has enough cash on hand to just pay off the principal balance of their debt when it comes due (it likely wouldn't be prudent to do so! If you dont enjoy talking on the phone, explain why youre willing to do it anyway. Preparing for their restructuring interview questions necessitates having a good grasp of traditional technicals and restructuring-specific questions. With all that said, prior to filing we wouldn't expect the equity to trade at zero. First had a phone screening interview, followed by in-person interviews with four people ranging in titles from associate to managing director. What makes you like real estate? What this particular way ofanswering this question does is show you implicitly understand the "Why?" The interviewer may ask you this question to determine if you have experience using the terminal, which is a valuable skill for employees at Houlihan Lokey. If you look at the Vault report, all the verified reviews (i.e. In-person Superday. Houlihan Lokey uses Bloomberg Terminal to access financial information and conduct research. Traditional debt above equity in the capital structure is capped at what their returns can be (the given interest rate plus the repayment). Find out more. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, 101 Investment Banking Interview Questions, Free 1 month access by adding just 1 salary datapoint, REAL salary bonus data across 1,000+ companies, Plus free 1 month access to 10,000+ interview insights. For example, if you buy a rental property for $100,000 and rent it out for $1,000 per month, the residual income would be $900. I applied through an employee referral. Revenue: $500 million to $1 billion (USD) Competitors: Lazard, Morgan Stanley, Greenhill & Co. Full database access + industry reports: IB, PE, HF, Consulting, 25k Interviews, 39k Salaries, 11k Reviews, IB, PE, HF Data by Firm (+ more industries). On Fishbowl, you can share insights and advice anonymously with Houlihan Lokey employees and get real answers from people on the inside. or Want to Sign up with your social account? Anonymous Interview Candidate in New York, NY, I applied online. This prior agreement allows the debtor to leverage the bankruptcy process to distinguish debts - pursuant to what the creditors agreed with previously - and exit the bankruptcy process in as little as a month (whereas traditional Chapter 11s can stretch from four months to well over a year). View job. I applied through college or university. It was fairly standard for investment banking. In the end, we found several cost-cutting measures that helped our client achieve their goals.. Houlihan Lokey . What do you expect from your manager in terms of guidance and mentorship? On Fishbowl, you can share insights and advice anonymously with Houlihan Lokey employees and get real answers from people on the inside. Trick question. Industry and behavioral focused. Example: I have worked on several mergers and acquisitions during my career. Anyone know anything about Houlihan Lokeys M&A Tax group? Every interviewee should have known that HLHZ is big in its niche, so youve got to have a more concrete answer to nail the offer. 1 . Houlihan Lokey. Currently work in Big 4 as a director in TAS. Very nice people and not super hard questions. If firm A and B has same revenue, same location, same product, why would firm A pay $5M tax and B pay $0? Phone interview. Example: When I was working as a financial analyst at my previous company, we were tasked with finding ways to reduce costs for our clients business. This question is an opportunity to show your enthusiasm for the company and its values. Example: "I think a good financial analyst needs to be detail-oriented, organized and able to work . For financial analyst positions, the interview process usually begins with a phone screen. The firm is based in LA with regional offices in New York, Chicago, San Francisco, Dallas, Atlanta, Minneapolis and Washington, D.C. What three words would people use to describe you, Get started with your Free Employer Profile, The Ultimate Job Interview Preparation Guide. Even though the interview was difficult, the interviewer was pretty nice. However, what I've listed above encapsulates the vast majority of the generalkinds of restructurings done. What motivates you to succeed in this position? Super day- 4 or 5 interviews in one day. The number you see in the middle of the doughnut pie chart is the simple average of these scores. It was mostly standard stuff. The % of Interns Getting a Full Time Offer chart is meant to provide a realistic estimate of the hiring practices of the company based on the reviews at this company. I bet the guy will be happy to tell you what restructuring really is for HLHZ and this is going to be an invaluable piece of information for your next round of interview. Some may not like the idea of spending time with your colleagues during weekdays, weeknights AND weekends. The process took 4 weeks. . Simply put, as a company gets more reviews, the confidence of a "true score" increases so it is pulled closer to its simple average and away from the average of the entire dataset. First round went well and they emailed me a day later to schedule my flight. Also, the interviewer couldn't speak very well, which made it hard to understand. Obviously the reason why PIK is usedis to try to keep the amount of cash interest flying out the door to a minimum thus protecting the likely already fragile liquidity position of the company. The Interview Experience is a score from 1 star (very negative) to 5 stars (very positive) generated based on the Interview Insights at this company. It's important to understand that in many restructuring scenarios out-of-court, PIK will often end up being utilized. Houlihan Lokey is a global investment bank that specializes in mergers and acquisitions. The interview was extremely technical, basically covered the entire bonds section from the WSO technical guide. Houlihan Lokey has opportunities for the right candidates across many sectors. Interviewers ask this question to make sure you are comfortable speaking in public. The stock has a market capitalization of $6.83 billion, a P/E ratio of 26.40 and a beta of 0.78. This call option reflects the fact that maybe the company suddenly has a surge in sales, a new product development that everyone loves, or the CEO finds $200 in a backroom that no one has accounted for. In an out-of-court restructuring you can do a simple amend and extend of a revolver or term loan to push out maturities, do a debt exchange (including fancy sounding things like a non-pro rate uptier), do a debt exchange with equtization, etc. HLHZ is also a big player in fairness opinion but if you have ever done one, you will know that these are boring, grunt work with relatively low fees and Id rather highlight the more prestigious part of their business. However, this largely reflects the fact that HL has a significantly higher headcountand doesn't need to be quite as concentratedin the amount of mandates they take on. 2 Houlihan Lokey Financial Restructuring Analyst interview questions and 2 interview reviews. Super days usually consist of interviews with junior and senior members of the group. How comfortable are you with public speaking? Please note, comments must be approved before they are published, Use left/right arrows to navigate the slideshow or swipe left/right if using a mobile device, There is an emphasis on asset sales (both out-of-court and in-court) in the case study that are reasonably uncommon in most deals, There isn't muchwritten aboutthe potential out-of-court solutions that exist for the company (which is a reasonably large part of restructuring in practice). The firm is based in LA with regional offices in New York, Chicago, San Francisco, Dallas, Atlanta, Minneapolis and Washington, D.C. This question can help interviewers learn more about your interests and how you spend your free time. Why do you want to work at Houlihan Lokey? So as equity trades closer to zero, the value of equity begins to look much more like a call option. Companies. Our transaction expertise and leadership in the field of valuation inspire confidence in the financial executives, boards of directors, special committees, retained counsel, investors, and business owners we serve. We have Senior Notes of $100 and thus a recovery for them would be $50. Even trying to provide a little bit of nuance in this answer has been difficult. Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. Bankers generally like numbers (cant help it, they are trained for that) so they feel comfortable if they hear a lot of (accurate) numbers from you. Residual income is important because it shows how much profit a company or investment will make over time.. The debtor has to come up with plans for how it wants to restructure - whether that is deciding between doing something out-of-court or in-court or developing a Plan of Reorganization if the company has already filed - while creditors just need to take the proposal given and decide how they want to negotiate with it (or if they want to make an entirely new counterproposal). What's a deal we worked on that you found interesting? Example: In my last role as an analyst at a financial advisory firm, I was tasked with analyzing a companys financials and providing recommendations on whether or not they should pursue a merger. How do you approach problem solving? Example: Ive worked with several outside vendors during my career. Are you familiar with Bloomberg Terminal? Most difficult was live cases. Financial Analyst (39) Analyst (33) Investment Banking Analyst (25) Summer Analyst (21) Investment Banking Summer Analyst (17) This can be an important part of the job, so its helpful if you have some experience in this area. Had a follow-on interview where I had to give a presentation on a recent M&A deal. or Want to Sign up with your social account? First round interview with an associate in the RELL group. Average Houlihan Lokey Investment Banking Associate salary in India is 20 Lakhs per year based on 1 salary. The questions are understandably technical, including the calculation of EV (enterprise value), how to derive the WACC, some NPV (net present value) questions as well as a long one that asked you how the numbers flow through the three financial statement in the event of a transaction. Common Multiples used. Like anything though, the devil is in the details. Contribute to the database and get 1 month free* Full online access! How is the FDD practice at Houlihan Lokey in terms of WLB and comp compared to the B4? I interviewed at Houlihan Lokey (London, England) in Feb 2017. In almost all restructuring interviews you're going to be tossed a waterfall question like this one. What is the difference between a bank, an insurance company and an investment bank? Had a 1st round zoom interview and a 2nd room zoom interview. Culture, benefits, comp? What would you suggest they do with their debt/equity ratio? From a simple recovery perspective, you have an EV of $150 (30*5). This would make the Senior Notes the impaired class in an actual Chapter 11 filing and they would then get to vote on the Plan of Reorganization (POR) and get the reorganized equity of the company as it emerges from Chapter 11 (current equity holders would get nothing, or perhaps a "tip" which is a more complicated and rarer phenomena). Its also a good opportunity for you to highlight any skills or experiences that make you a strong candidate for the position. I interviewed at Houlihan Lokey (New York, NY) in Sep 2022. CFA or CPA: Which Qualification is Better? The hiring process can take anywhere from a few weeks to a few months. Hiring managers want to know that you have the skills and knowledge necessary to succeed in their company. The interviewee is professional. New York, NY. City: Los Angeles, CA United States. Sign In. Incoming Investment Banking summer Analyst at Houlihan Lokey | Co-head of M&A at the Queen Mary Banking and Finance Society . Example: I am familiar with Bloomberg Terminal because I used it in my previous role as an investment banker. If there's not a whole docket to go through, it makes it much harder for you to be asked tricky follow up questions. I think my ability to talk on the phone will help me connect with clients and colleagues.. Another technical round Press the space key then arrow keys to make a selection. Flew me to SF to meet the team. This way, were not wasting time reaching out to people who arent interested in what we have to offer. I did not get an offer. When answering, try to describe a situation where you used critical thinking skills to overcome an obstacle at work. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. People have reported that the interview at Houlihan Lokey is medium. Free interview details posted anonymously by Houlihan Lokey interview candidates. These are all signs of potential distress, to be sure. Once I have a clear understanding of the issue, I look at past experiences to see if there are any similar situations Ive encountered in the past. I applied through college or university. The interview went pretty well, I got invited to Dallas for a Super Day which was relaxed but a little unorganized. Dallas for a super day which was relaxed but a little unorganized what multiple would you use to evaluate two... Networking call with an alum who referred me to the B4 restructuring analyst interview questions and 2 interview.! The devil is in the RELL group anonymously with Houlihan Lokey interview candidates and compared! Think a good opportunity for you to highlight any skills or experiences that make you a strong for! Necessary to succeed in their company in-person interviews with junior and senior members of the capital structure it has most... Cv houlihan lokey financial analyst interview cover letter practice as well as the steps you take to resolve.. Capital structure it has the most inherent volatility to it several outside vendors during my career capital it. 30 mins with sr. hr manager and assessment is 1 hour who arent interested.... 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