Lbo interview - Study guides, Class notes & Summaries

Investment Banking - Technical Interview Questions Rated A+ A company has had a positive EBITDA for the past 10 years, but it recently went bankrupt. How could this happen? ️1. Excessive capital expenditures (cash-flow neg) 2. Unaffordable high interest expense 3. Credit crunch for loan maturity. 4. Significant one-time charges (from litigation, etc.) that are high enough to bankrupt the company. A company makes $100 cash purchase of equipment on Dec. 31. How does this impact the t...

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BIWS 400 Questions with complete solution 2023Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. You receive some comments from the SEC and keep revising the documen...

BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023 Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? - correct answer You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. Yo...

Walk me through the three financial statements "The 3 major financial statements are the income statement, balance sheet, and cash flow statement. The income statement gives the companies revenue and expenses, and goes down to net income, the final line on the statement. The balance sheet shows company's assets (resources) such as cash, inventory, and PP&E, as well as its liabilities, such ase debt and accounts payable, and shareholders equity. Assets must equal liabilities plus shareholder...