Questions corporatives

Questions pour postes en finance corporative

Vous posera-t-on des questions pointues à l’occasion d’une entrevue pour un poste très junior? « Highly unlikely »comme disent les Anglais. Lorsque vous postulez à un « graduate scheme », l’employeur ou le recruteur suppose à priori qu’en dépit de vos études universitaires, vous ne savez rien qui soit véritablement utile (Ne protestez pas, si ça vous avantage). Néanmoins, nous vous en présentons quelques unes, question de vous ouvrir l’appétit. Souhaitiez-vous savoir ce à quoi pourrait ressembler un entretien plus technique, nous vous invitons à consulter la transcription d’une véritable entrevue (de deux heures) en banque d’investissement à Londres pour un poste d’analyste (1-2 ans d’expérience) en LBO: levier Q&R.pdf.

Your interviewer asks you to suggest a solution to the following hypothetical bank scenario:

An investment bank made a no-amortisation, subordinated and unsecured corporate loan to a client some years ago. As a result of a downturn in its industry, this client will not be able to meet the scheduled bullet payment (le montant final non-amorti) of the loan. The bank believes that the client has a viable business. Your interviewer asks you to recommend a series of contract clauses which would give the client some financial flexibility, while compensating the bank for the increased risk it will bear.

Voici une réponse possible :

1) Extend the loan by x years, but introduce amortisation so as to avoid the problems that come with bullet payments.
2) Accept to receive the next x months of interest payments up-front at the closing of the restructuring in the form of common shares and also receiving warrants (options) as the borrower does not currently have the necessary liquidity.
3) Increase the interest rate charged on the loan to reflect the heightened risk profile of the client and its sector.
4) Tighten existing covenants: limitations on additional indebtedness, limitations on asset sales, limitations on capital expenditures.
5) Restructuring should be made conditional to a successful debt restructuring with other creditors, so as not to be the only lender to make concessions.

Were you expected to create a financial forecast for a company over a long period, what sources of information would you use?

First, I would begin by taking a look at the company’s historical performance and own forecasts drawing on its annual reports, press releases, investor presentations, webcasts and broker reports about the company. In cases where the company is an existing and established relationship, forecasts may already have been done in the past, which can of course be a starting point. I would also want to establish how the company’s industry as a whole is performing, which allows to set boundaries which can guide one’s forecast. This can be done by examining the records of the company’s peers / competitors and paying careful attention at any guidance / forecasts given by the sector’s market leader, as one’s own forecast should not be materially different than what the top player states it can achieve. This too will serve as a further reference point, against which one would not expect one’s forecast to deviate much. If deviations are expected, then one should must ascertain that the are rooted in something that can be sensibly defended. Unfortunately, sometimes, in spite of one’s best efforts, a forecast may be no better than a guess or an estimate. Some sectors are notoriously difficult to forecast, such as semi-conductor industry. In these cases, it is always worthwhile to consult the forecasts made by specialist consultancies.

How would value a company?

Source: File info company house
Trading Valuation: high average low
Discounted Cash Flow mode
Acquisition comps: (be aware of premium)
Trading comps: multiples (current trading, PE, EV/EBITDA, EV/EBIT, EV/sales
Terminal value: same exit and entry
Terminal value Perpetual growth model
EV = D + E (add cash)
E.g. two same ebitda, two same EV = but one has debt, remove debt, one has cash, add cash)