. Want Access to these Houlihan Lokey Interview Insights? 2005-2023 Wall Street Oasis. Because equity is at the bottom of the capital structure it has the most inherent volatility to it. Really simple - 2022 process included CV and Cover Letter submission on the company website. For many who are just getting interested in restructuring, HL's case study - The Troubled Company - is the first thing that they read. 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. In other words, be well prepared! When it comes to interviews, preparation is key. That company is Houlihan Lokey ( HLI 0.06%), an investment bank formed in 1972 that went public in August 2015. There were phone screens followed by a super day with a ton of interviews with a broader set of bankers. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Example: I am passionate about helping businesses grow and thrive. In terms of its restructuring practice, I would say Blackstone and Lazard are HLHZs closest competitors, at least in the US. Currently work in Big 4 as a director in TAS. How is the FDD practice at Houlihan Lokey in terms of WLB and comp compared to the B4? In my last position, I used Bloomberg Terminal daily to monitor market trends and analyze company performance.. It's not as hard as expected. Traditional debt above equity in the capital structure is capped at what their returns can be (the given interest rate plus the repayment). Why do you want to work at Houlihan Lokey? Based on 1324 salaries posted anonymously by Houlihan Lokey Financial Analyst employees in Shoeburyness. Houlihan Lokey . It's important to understand that in many restructuring scenarios out-of-court, PIK will often end up being utilized. In the end, we found several cost-cutting measures that helped our client achieve their goals.. Financial Analyst (39) Analyst (33) Investment Banking Analyst (26) Summer Analyst (21) Investment Banking Summer Analyst (17) or Want to Sign up with your social account? I am all of these things, which is why Im confident I would excel in this role. The process is going well in around 40 mins. Find a Great First Job to Jumpstart Your Career, Stand Out From the Crowd With the Perfect Cover Letter, How to Prepare for Your Interview and Land the Job. Often it'll be the case that if a RX shop doesn't win the debtor mandate, then they'll see if they can get a creditor-side mandate. Sign In. Technical First round. Final round was a super day with various members of the team. The business's 50 day moving average is $94.02 and its two-hundred day moving average is $87.53. Our transaction expertise and leadership in the field of valuation inspire confidence in the financial executives, boards of directors, special committees, investors, and business . Residual income is important because it shows how much profit a company or investment will make over time.. How do you approach problem solving? I would certainly recommend reading it. In 2022, we worked on more than 125 restructuring-related transactions on behalf of companies, their creditors and shareholders, and other constituents. Simply put, as a company gets more reviews, the confidence of a "true score" increases so it is pulled closer to the simple company average and away from the average of the entire data set. Of course, I should make clear that part of the reason why certain tranches of debt are trading low in the first place could be because maturity walls are coming up, the coming has limited liquidity, and the market is pricing in the need for there to be some kind of restructuring in the future. 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). Companies. Asked me a lot of questions abt if I had gotten other offers and when I had to respond to them if I had them. On campus interview for first round, then invite to office. The process took 2 weeks. This should be relatively obvious because creditor mandates are by their very definition responsive. Felt very aggressive and uncomfortable. Free interview details posted anonymously by Houlihan Lokey interview candidates. Many who interview for restructuring jobs can recite the formulaic accounting answers perfectly, but then have trouble describing how exactly restructuring works (this is why the equity value question above is so common) or what a distressed company really is. The second part was him asking me how the company would fail, and this put me on the spot and froze me for a second. Meeting with recruiter followed by a 30 minute meeting with a director. As a general principle, it's always best if you decide to talk about an out-of-court restructuring as opposed to a Chapter 11. Phone interview. Status: Intern. Interview. Overall great and smooth interviewing process. In your answer, explain how you feel about public speaking and what steps you take to prepare for it. CV and cover letter practice as well as interview practice. Contribute to the database and get 1 month free* Full online access! There are also branches in Europe (London, Paris, Frankfurt) and Asia (Tokyo, Hong Kong, Beijing). I applied through a recruiter. City: Los Angeles, CA United States. One phone interview with Associate before Super Day. All Rights Reserved. Hiring managers want to know that you have the skills and knowledge necessary to succeed in their company. Shares of NYSE HLI opened at $99.51 on Friday. Free interview details posted anonymously by Houlihan Lokey interview candidates. After meeting with them several times, we determined that they could save money by changing some of their investment options. For instance a debt exchange may involve the new debt instrument - that folks are exchanging into - having 5% cash interest and 4% PIK, for example. We hired a consultant to help us find the right software for our needs. However, if you explain what the impetus for restructuring investment bankers getting involved in a particular situation is, that makes your answer really stand out because it shows your practical understanding of restructuring. I interviewed at Houlihan Lokey (New York, NY) in Sep 2022. Get 27 financial modeling templates in swipe file. Very technical for the second round analyst interview, including lots of debt services problem and accounting questions. Our firms culture is very collegial, supportive, and fun. behind why downgrades could be happening and debt is trading down. What was your most successful experience working with clients? 2005-2023 Wall Street Oasis. The phone interview starts with a personal question and directly jumps into technical questions. The process took 1 week. I applied online. Interviewers ask this question to make sure you are comfortable speaking in public. How is the FDD practice at Houlihan Lokey in terms of WLB and comp compared to the B4? What do you know about the firm's restructuring practice? The interview process at Houlihan Lokey can vary depending on the position you are applying for. Both were 30 minutes and . Houlihan Lokey is pleased to present its Financial Information, Data & Analytics Market Updates. Super day- 4 or 5 interviews in one day. All Rights Reserved. I met with several VPs and MDs. CFA or CPA: Which Qualification is Better? Make sure review accounting related knowledge. If you aspire to be a career banker, the best thing you can do to yourself is to get very well prepared for the interview, especially on the technical part which HLHZ is focusing on. 2005-2023 Wall Street Oasis. Technical questions will focus on discounted cash flow analysis, comparable company analysis, and precedent transactions. Tell me about a time when you didnt meet a deadline for a project. Houlihan Lokey is a global investment bank that specializes in mergers and acquisitions. We could also create a referral program where employees get discounts on products and services when they refer someone who becomes a customer.. Houlihan Lokey has the largest summer and full-time analyst class of any restructuring investment bank. 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. Anonymous Interview Candidate in Los Angeles, CA, I applied through an employee referral. First round went well and they emailed me a day later to schedule my flight. However, most positions will require at least one behavioral interview and one technical interview. Health Benefits: Medical / Health, Dental. Flew in the morning of and interviewed until about 4PM. Hiring managers want to know that you have a plan for growing the company and increasing revenue. In an in-court restructuring, we only care about Chapter 11s (since a Chapter 7 involves liquidation overseen by the U.S. . Sometimes they'll be asked in conjunction with traditional cash interest questions (e.g. 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. To help you prepare, weve compiled a list of some potential questions you may be asked in an interview with Houlihan Lokey, along with some sample answers. Very thorough interview. Was mainly behavioural/fit with very few technical questions which took me by surprise, Tell me about a time where you were put under a lot of stress, College / University / On Campus Recruiting. Find a Great First Job to Jumpstart Your Career, Stand Out From the Crowd With the Perfect Cover Letter, How to Prepare for Your Interview and Land the Job. ), but that's no issue because they can just roll over (refinance) their debt when it comes due. HL has made its name for taking on many interesting creditor mandates. . This is because the vast majority of those who go into restructuring interviews - even those who ultimately get the job - really don't have a feel for what the job is all about. Here are 6 reasons why middle market / boutique investment banks can be more attractive than the bulge bracket. Common Multiples used. I . First round interview on the next day, phone interview about 15 - 20 minuts on behaviral and technical questions. Financial Restructuring Summer Analyst. In 2020, we worked on more than 175 restructuring-related transactions on behalf of companies, their creditors and shareholders, and other constituents. 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. Be the first to find this interview helpful. Hiring managers ask this question to learn more about your problem-solving skills and how you overcame a challenge in the past. Be assertive. Est Annual Revenue: $500m+ . The process took 4 weeks. It's not as hard as expected. Anonymous Interview Candidate in San Francisco, CA, I applied through college or university. Give us an example of how you solved a difficult issue in the past. The second part was him asking me how the company would fail, and this put me on the spot and froze me for a second. Share Interview Advice. Now we're at +$40. Companies. interview and assessment can be done separately. I interviewed at Houlihan Lokey (New York, NY). . Nothing out of the ordinary. I developed an effective recruiting strategy that included reaching out to universities in the area to find candidates who were looking for internships or entry-level roles. 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). Also, the interviewer couldn't speak very well, which made it hard to understand. Expect the question to be pretty rigorous if you answer the first question correct, expect you get a harder one on the second. Announced or completed transactions. The first interview was 25 min and was small talk and 3 technical. Type your email address. I interviewed at Houlihan Lokey (London, England) in Feb 2017. What's a deal we worked on that you found interesting? 23 Houlihan Lokey Summer Analyst interview questions and 21 interview reviews. Explore more on salary insights by experience and location. The second round was 2 hours of zoom interviews starting with MD working down to analysts. Mostly fit based interview then followed up with a case study. 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. 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. Prepare for the types of questions you are likely to be asked when interviewing for a position at Houlihan Lokey. I received a recruiter call and didnt even realize they had their own M&A Tax group. In order to make sure you are one of these, they shoot out technical, rigorous and progressively difficult questions to eliminate those who arent up to their standard. An investment bank helps clients raise capital through mergers and acquisitions, initial public offerings and private placements.. Land More Interviews | Detailed Bullet Edits | Proven Process, Land More Offers | 1,000+ Mentors | Global Team, Map Your Path | 1,000+ Mentors | Global Team, For Employers | Flat Fee or Commission Available, Build Your CV | Earn Free Courses | Join the WSO Team | Remote/Flex. next step is 30 mins with sr. hr manager and assessment is 1 hour. We have Senior Notes of $100 and thus a recovery for them would be $50. 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. I interviewed at Houlihan Lokey in May 2021. after submit online, HR will connect to next step. There are always quite a few real companies that have financials quite like what I've outlined above where they still have actively traded equity at surprisingly high prices. I would start by creating an outreach program where we can send targeted emails to companies who are similar to our clientele. If you can answer the last question, it means that you can build a full financial model right away. Like anything though, the devil is in the details. The interview process at Houlihan Lokey can vary depending on the position you are applying for. This question can help interviewers understand your ability to prioritize and manage your time. Your bosses and colleagues do care, which is typical in a smaller bank. I also enjoy working alone because it allows me to focus on my work without distractions.. Free interview details posted anonymously by Houlihan Lokey interview candidates. Industry: Corporate Finance Investment Banking. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial . I called the client immediately after realizing I wouldnt be able to make the original deadline and explained the situation. Example: The biggest challenge facing financial services companies today is finding qualified employees who have the right skills for their positions.