PRIVATE EQUITY INTERVIEW Q&A

Five Questions Categories: Fit, Behavioural, Industry, Technical, Brain

Teaser

SUMMARY

1- INTERVIEWS DOs & DON’Ts

2- BODY LANGUAGE RULES
3- Q&A - FIT/MOTIVATIONAL
4- Q&A - BEHAVIOURAL/COMPETENCY
5- Q&A – INDUSTRY
6- Q&A – TECHNICAL
7- Q&A – BRAIN TEASERS
8- FINAL PART OF THE INTERVIEW: Do you have any Questions?
9- AFTER THE INTERVIEW: Send “Thank you” Note
10- HOW TO NEGOTIATE YOUR SALARY/RAISE
1-INTERVIEW Dos and Don’ts

DO

 PREPARATION IS THE KEY.

 BE LIKEABLE: likeability is more important than skills, intelligence, or experience. The
person who is most likeable will get preference. Interviewers just can't help themselves. It's
usually subconscious. given the choice between someone who is highly competent yet
unpleasant vs. someone who is extremely likeable but a total idiot, studies shows that
people say that they'd choose the lovable fool/idiot.
 BE OPEN and HONEST
 BE CALM: be polite and professional but with serendipity and being “down to earth”; they look
for a person that know or that try to find solution through reasoning; learn from others, know
your weaknesses and strength, you don’t have to be afraid to approach others to ask for how to do
 SEMPLICITY is the key word fundamental, “if you don’t know how to explain something as if
you were to explain it to a child, then you don’t completely know that concept”, to resume and
keep it simple (do not complicate things or track of thinking excessively)
 CLEAR IDEAS: you have to know why you’re going there, why is that place good for you and
motivate your choice with reason
 BE CONFIDENT, and sure of your capabilities
 ATTITUDE IS VERY IMPORTANT, how do you react in front of a new challenge. You have to
be into the team, to be integrable into the team, but most important, to be integrable into the
whole company (peoples, departments and culture); you are a new family member, loyalty, they
are looking for someone who is going to stay. You have to be “a fit” into the team: culturally.
 Research about THE COMPANY
 Research about THE INTERVIEWER
 BE PREPEARED to describe specific example from past work experiences ad what have learnt
from them
 DRESS PROFESSIONALLY: keep things minimal, neutral, and professional. A classic
button-down shirt or blouse is a good option. Avoid bright colors, dark colors, and busy
prints. The safest choice is to wear white, light blue, light gray, or another light color,
providing the color doesn't disappear into your background; If you do wear a tie, make
sure it isn't too bold or distracting. A classic striped or solid tie will do the trick. Don’t get
attention on your clothes, the interviewer focus should be on me and NOT on what I’m
wearing
 SHOWER and SHAVE the beard before the Interview
 DON’T BE LATE: arrive (Connect if Virtual interview) 5 to 10 minutes early
 Bring at least 3 copies of the resume (if physical interview)
  Be CALM. Be PROFESSIONAL. but at the same time FOCUSED, ENERGETIC,
ENTHUSIASTIC, MOTIVATED
 Be Down-to-earth
 Make Eye contact
 Be Honest about your Qualifications
 Answer the Interviewer questions. Never try to avoid of brush off something that the interviewer
seems interested in
 Ask informed questions
 Listen ACTIVELY and CLOSELY
 Reply to the questions AFTER A WHILE, and not in a Rush
 MARKET YOURSELF by using concrete past examples of how you have succeeded and
how you can be an asset for this company
 Ask for business card from each Interviewer
 Inquire about the next steps in the hiring process at the conclusion of the interview
 If offered the job, ask for a date by which you are expected to respond
 Send a thank-you note immediately after the interview

DON’Ts

 Be late
 Schedule any other appointment on the day of the Interview (you don’t know how long
the interview will last)
 Chew gum/mint during the Interview
 Wear bracelets or not appropriate accessories
 Give answers too long (Long Winded answers) risposte prolisse
 Give answers in a rumble way (rumorosamente)
 Give too short answers (Two-word ansers)
 Be cocky or arrogant
 Wear perfume
 Ask questions that reveal your ignorance OF BASIC FACTS about the employer
 Criticize past or current employer (Boss)
 Take too many notes that cause you to BREAK EYE CONTACT for more than a few
seconds per note
 Discuss salary or benefits until you receive a job offer
 Give a business card (the interviewer has your resume)
BODY LANGUAGE RULES

 MAINTAIN GOOD POSTURE: Once you are in the actual interview, keep your posture
upright. Choose a straight-backed chair if possible, and keep your chin up and shoulders
down. Great posture displays confidence.

 KEEP YOUR PALMS OPEN: You can use your hands to talk if that is natural for you,
but make sure you keep your palms open as you do so. Open, upward-facing palms
demonstrate you have nothing to hide and are confident in what you are saying.

 USE EFFECTIVE EYE CONTACT: In terms of eye contact, treat the interviewer like an
old friend. Make eye contact with them regularly, but look away when it feels natural to
do so too. Always maintain eye contact when shaking hands.
  MIRROR THE INTERVIEWER BODY LANGUAGE: We naturally tend to mirror the
people with whom we are speaking. Be aware of this and mirror the interviewer's body
language to set them at ease

 BE RESPONSIVE: Show you are interested in what the interviewer is saying by smiling,
nodding and leaning forward (sporgiti in avanti) when they are speaking.

2-FIT/MOTIVATIONAL Q&A

- Walk me through your resume.

The number one mistake candidates make when answering this question is translating the question
to something akin to, "Tell me everything you've done in your professional career in chronological
order." If you approach the question this way, most of the time it results in a bloated, rambling
picture of your accomplishments, even if you've done a lot of impressive things.

There is a better way. The key to nailing this question is to dig deeper and understand the question
behind the question. Ultimately, the interviewer wants to know why your past experiences, skills,
and accomplishments make you the ideal candidate for the hiring company. That's the "so what"
implication of this question.
Once you understand the true question, answering it becomes a whole lot easier.

The first step to answering this question is to focus on your career arc. If you walk through each item
on your resume in a, "First I did this, then I did this, then that, etc." format, you will bore yourself
and, even worse, your interviewer. The end result is that the interviewer will get lost in details, forget
key points, and ultimately come away with a muddled understanding of your unique skills and
experiences. Fortunately, there's a simple solution to that: curate your experiences and articulate
your career arc and experiences at a higher level.

Tactically, you can accomplish this by running through a mental exercise of picking out the three or
four experiences that are most relevant to the job you're interviewing for. Look for ones that helped
you build skills applicable to the job at hand, or that taught you a lesson that is relevant to the type
of work you'd be doing.
Second, you’ll want to distill your experiences. Now that you've got a narrative arc in place, the goal
is to highlight experiences with a high signal to noise ratio. This means that you want to cut out the
fluff and filler and make sure you hit the key points you want the interviewer to remember about
you. To do this, go through each key experience in your arc, whether it's a club leadership
experience, a summer internship, a prior job, a study abroad program, etc., and answer three
questions for yourself: 1) Why did you pursue it?, 2) What key skills and lessons came out of it?, and
3) How did it influence your next steps?

This distillation works because it provides the interviewer only with the key pieces of information.
Remember, this is just a "resume walkthrough," so each experience you highlight should be a
succinct teaser of all of the valuable lessons you've learned.

The last thing you need to do when answering this question is connect the dots. Once you've
painted a curated, distilled version of your resume, you naturally end it by connecting the final dot:
showing how the job you're currently applying for is the natural extension of this arc. It's hard to
overstate the benefits of this approach: not only did you nail the question the interviewer asked, but
also you've already proactively stated how you fit into the company. Given that "walk me through
your resume" is often an opening question, this is a great way to set yourself up for success for the
rest of the interview.

One final piece of advice: if you find yourself struggling to curate just a few experiences to highlight
out of fear that you'll leave out a lot of other details, remember that this is just the start of the
conversation. If the interviewer finds those resume items intriguing, they'll proactively ask for more,
and that's a good thing.

- Tell me about something that can’t be seen on your Resume

- Why are you unique?

- Tell me about yourself.

This question does not mean: “Tell me about your life history, beginning with where you were born,
how many pounds you weighed at birth, where you went to elementary school, and what your
relationships are with your parents and siblings.” Instead, what it really means is: “Tell me more
about you as a person. Are you interesting? Are you sociable? Can you remain cool and calm when in
the spotlight?”

When answering, briefly talk about relevant achievements, personal tastes, and any interesting facts
about yourself, such as the various cities in which you’ve lived, and your interests, passions, and
hobbies. Be short, informative, and, most of all, articulate.

While this might be an intimidating question, it’s actually one of the best opportunities an
interviewer can give you because you can answer any way you’d like. Prepare for this question by
going over your resume as well as the qualifications and responsibilities listed in the original job
posting.

Then, give your interviewer a short summary of your background and career path thus far, making
sure to focus on those experiences that are relevant to the position. The description should end with
why you applied for this role, how it fits into your trajectory, and why you are excited about it.
A simple formula to answering this question is to structure your response into three parts: present,
past, and future.

Present: speak a bit about who you are now, what is it that you do in terms of work or study, and
perhaps share a recent accomplishment.

Past: speak about how you got to where you are now and how your past experience has prepared
you for the job.

Future: share a bit of your future career-based plans and why you think this job will help you achieve
that.

The key is to keep the answer as professional as possible without making it sound too stiff. It's okay
to share some personal information about yourself, but only if you think it will emphasize how
passionate you are about your job.

- How would someone else describe you?

Your Friends
I love my friends dearly, but they are not the people that I would ask to describe me to a potential
future employer. The prevailing opinion would probably be, “She’s a loudmouth who watches too
much TV and uses all caps in texts a lot.” Accurate, but not the professional identity I’m attempting
to cultivate. I can imagine the same goes for a lot of friends’ relationships—so why are hiring
managers asking? Because they want to know what you’re like “in real life.” They want to see if
you’ll be a cultural fit for the company—if the office is a pretty competitive place, they might not be
looking for someone whose friends would describe them as “chill.” Likewise, if the office is laid back,
they may not be looking for a “gunner.”
In this situation, I would advise choosing qualities of yourself that are universally likeable—
something that would make spending an eight-hour day with you seem like a good idea. There’s a 99
percent chance you’re a very nice person who’s a pleasure to be around, so don’t get modest for this
one. I also usually end it with a joke, since friends always know more about you then you’d normally
tell an employer, and your interviewer knows this. As an example, my go-to response is usually,
“They’d probably describe me as straightforward and flexible, with a good sense of humor. They’d
also probably warn you that I’m overly competitive at pub quiz.” A joke like that can ease any
tension in the room and provide another channel of conversation with your interviewer.

Your Coworkers
The person you are at work and the person you are with friends is likely not exactly the same person.
I’m not saying that we all live secret double lives, but some compartmentalization between work and
home is natural. When an interviewer asks what your coworkers would say about you, they’re really
asking two things: What are you like at work, and what are you like to work with? This question is a
bit different than what your friends would think because it invites you to share specific situations. No
one needs specific stories about your personal life, but interviewers definitely want examples of your
work style.

In this situation, pick one to three traits to cover, and have examples to back them up. For example,
“My coworkers would probably describe me as very organized—I’m usually the one people check
with to confirm when meetings and deadlines are because they know that my calendar is always up
to date.” Or, “My coworkers would call me a team player—I’m always happy to help out if
someone’s feeling under the gun, even if it’s not something normally in my job description.”
Answers like these give your interviewer a sense of how you’ll fit with your potential new team, and
example situations demonstrate the concrete value you’ll bring with you if you’re hired.

Your Boss
The way that your boss would describe you is probably different than your coworkers would—the
two of you have a different working relationship. And the way that people interact with their bosses
can be very revealing—what you talk about when you discuss your boss is very important, so this is
the question that holds the biggest potential for risk.

First things first, you should never, ever, ever bad-mouth your boss. A sarcastic answer like, “He’d say
I’m a good cog in the machine, if he remembered my name,” is a HUGE no-no. I don’t care how bad
your boss is, you don’t say that: a) it’s bad form and b) word gets around—for all you know, your
interviewer and your boss are golf buds. Even if they’re not, no one wants to work with someone
with a negative attitude—answer this question like that, and you will not be getting called back.
I sincerely hope your boss is a wonderful person and you have nothing but nice things to say about
them, because this question is definitely a chance to show that you appreciate them. You don’t need
to gush, but you can certainly pay a compliment. For example, “My boss is great—she’s really taken
the time to help me understand the various aspects of SEO and social media. So she’d probably tell
you that I’m intellectually curious and invested in growing my knowledge base.” One thing you could
also do is mention a positive performance review you received: “In my last performance review, my
boss said that my contributions to our latest social media campaign were invaluable; I really
appreciate how she always acknowledges my hard work.” Answers like these show that you have a
positive attitude, that you have a good relationship with your colleagues, and that you engage in
your field in a meaningful way.

Other people’s perceptions of you are, for better or worse, very important in a job search. That’s
why interviewers ask questions like these. They want to know what you think of yourself and what
you believe you’re putting out there into the world.

- What do you do for fun?

This is a chance to highlight your relevant extracurricular involvement. Although firms are looking to
hire those who are dedicated to their jobs, they also want people who are well-rounded and
interesting. This is your chance to show the interviewer your personal side. However, remember to
have relevant examples (i.e., "watching TV" won't win you many points).

Also, keep in mind that equal employment opportunity law mandates that any interview questions
be job-related. Questions about what you do outside of the office sometimes skirt illegal territory,
even if they are not as blatant as "Where do you go to church?" Your strategy should be to steer the
discussion back towards work. For example, if asked what you do for fun, you might say, "My focus is
work, but I enjoy playing tennis during my down time. It's an incredible workout and also a great way
to clear my head and gain clarity for the rest of the week."

Tell me about your passion

First, it's important to understand why interviewers often pose this question to job candidates. Here
are three possible reasons: 1) To get to know you better and see what you really care about, which
might tell them if they'd like to work with you and if others at their company would like to work with
you. It's a sort of 'Do you fit the company culture?' test to see if you're compatible with others at the
company; 2) To find out if you're a hardworking person and to determine if you're a committed
follow-through type of person. Note that the “passion” question is never about the passion itself.
Rather, it's about what you do with that passion: where you take it, how you incorporate it into your
life, and how it might apply to the job you’re interviewing for; and 3) To try to understand the depth
of your thought process and if you care and are passionate about weighty things or simplistic things.
This doesn't mean you need to be passionate about existential philosophy, but it's important to
show to your interviewers that you're a serious person and have the ability to problem solve and
think deeply, thoroughly, and broadly.

With all that in mind, and before we get to what a good answer to the passion question might look
like, it's also important to talk a little about the word "passion." "Passion" is an overused and often
misunderstood word, which is partly why people have such a problem answering the passion
question, and why they believe they might not have any passions.

To get at what a passion is, it's easier to begin with what a passion doesn't necessarily have to be. It
doesn't have to be your life's work. It doesn't have to be the one thing you hold higher in importance
than all others in your life. It doesn't have to be the one true love of your life. It doesn't have to be
something incredibly weighty. And it doesn't have to be something that you do every day.

As for what a passion could be, it could be something you like to do very much but don't get to
partake in all that much. It could be something you do in your free time. It could be a so-called hobby
and not related to your career. And it could be something abstract. For example, it could be
competition, solving problems, storytelling, learning, or standing up for the oppressed.

Now that you have an idea what interviewers are trying to determine when asking about your
passions, and what a passion is and isn't, it's time to decide on a passion to give your interviewer. As
mentioned above, you should be prepared to talk at length about your passion since there will likely
be follow-up questions about your passion. And so, as a first step, make sure your "passion" is
something you feel comfortable with talking about for a long time. Which is to say, make sure it's
something you know quite a bit about, could hold a conversation about for several minutes to an
hour, and make sure it's something that excites you (you definitely don't want to come across as not
all that excited about something that you say you like a fair amount).

Next, make sure it's something that'll get across a quality of yours that you'd like your interviewer to
know about and that will help your job candidacy. This should go without saying, but never forget
that the intention behind everything you say and do in an interview is to get the job (or at least, get
to the next round of interviews). You want to highlight why you'd be a good fit for the job and excel
at the job. And the passion question is a perfect place to help differentiate you from other
candidates.

Finally, make sure you answer honestly. This should also go without saying, but there is a tendency
(an understandable one) to give your interviewers answers you think you should give them as
opposed to answers that are honest.

As for an example answer, above it was mentioned that "competition" could be a possible "abstract
" passion. A lot of job candidates (especially recent college grads and recent grad-school grads) that
receive interviews with top companies are, to a great extent, passionate about competition—and
they might not even realize it. At least, they might not think of competition as a passion. But it could
be a perfect answer to this passion question—especially for those who struggle to determine what
they’re passionate about—in part because a competitive spirit is a (written or unwritten)
requirement for most professional jobs out there.
For example, you likely can't become a highly successful student or athlete (or employee) without
loving to compete. You might think the obvious way to use a competitive passion is to compete
against the competition, but what often makes successful students and athletes truly successful is
they love to compete against themselves. They often love to compete to see not only if they can
score or perform higher or better than others, but also, and perhaps more importantly, if they can
score higher and perform better than they themselves had done previously—if they can push
themselves to be better, faster, stronger, more productive, etc.

So, let's say that you, on further thought, find that competing is indeed one of your passions, and so
you decide to use competition as your answer.

-Follow Up Question:
 How this fit into your life?
Your interviewer will then likely ask you to tell about how this fits into your life. You could, in
response, talk about past experiences in which you competed: academically, athletically, on
the job—where you wanted to perform better as an individual and/or as part of a team.

You could also talk about how it fits into other hobbies of yours, how you always try to make
something a little bit better than you did before (say, if you often cook) or do better than you
did before (say, if you run marathons). This will underscore that you strive to do excellent
work, while showing you have other interests, and that you are committed to outdoing
yourself, that you continually want to improve upon work you did previously. Which is
certainly a good quality for any employee at any company.

And then, if you're asked why you're passionate about competing, your answer might
include that you take great joy and satisfaction in trying to outdo yourself, in trying to see
how far you can go and how well you can perform. Maybe it's also exciting to see that you're
able to go further than you thought.

Of course, this is just one of numerous possible passions that could be used. It’s up to you to
search yourself and your own life and experiences to find your specific passion(s). And then
 it’s up to you to determine which of these passions is the best fit for the job you're
interviewing for.

-Tell me about your past experiences

- 3 WHYs:
WHY THIS COMPANY?
WHY THIS JOB/ROLE?
WHY YOU?

- Why Do you want to work here? (at this particular firm) WHY THIS COMPANY?
This question is designed to demonstrate how much research you’ve done on the firm as well as to
see if you might be a good "fit." To get further information about a particular firm, you should read
recent press stories and visit its web site. This answer should be based on your actual reasons; you
don't want to get caught in a lie. You should still manage to show that you know a bit about the firm,
its people, its culture, and its specialties in your answer.

Other things to know and weave into your answer include: Is the firm a small firm and ostensibly
hoping to stay small or trying to get bigger? Is the structure flat with few layers of management or
are there several titles between analyst and managing director?

As an example answer, you could emphasize the people and discuss why you like the people you've
met and why this makes you want to become part of the team. Note that while it is good to talk
about the firm's people and culture, it is not the best idea to blatantly state that you want to work
for a firm simply because it’s prestigious (for reasons similar to why you should not discuss wanting
to make money).

TIP: say the sentence “I really want this job”. By saying this you will shows:

 a refreshing level of SINCERITY and this always strikes Interviewers in the right way
 a high level of COURAGE because the person hearing it knows that it’s something difficult to
say
 a good level of HUMILITY. It is translated as if we were saying “I know there are other people
there who want this job and I’m not the center of the universe
Types of Facts
● Financials: Profit, Loss, Revenue, %age up/down vs last year, Buying other companies, selling parts of
the business, certain divisions that did better than others

● Clients: Famous clients

● Key events: Products, Projects, Policies,

● Awards: Industry, Community, In the UK or abroad

● Unique Language: Google, Facebook, Apple, Core Values, Ideals, Mission Statement

● White Papers: Research, Being cited in the news, Consulting Papers

● History: What are they famous for?

● Industry News: Innovations, projects and ideas that have shaped the industry

Sources
● The companies "About Us/History" page

● Annual or Quarterly report: Read the first few pages, the Chairman or CEO's statement

● Google News

● Large News websites: BBC, Reuters, Wikipedia, Al Jazeera, RT, CCTV

● Wikipedia: Use for sources rather than facts

EXAMPLE: “EDF Energy is one of the largest and crucial integrated energy companies in the UK, offering
electric power and energy cost-saving solutions to clients in renewable and innovative ways. Since EDF
Energy was founded in 2002, it focuses on creating a cleaner, low-carbon future. EDF Energy has been
successful, including nuclear power plant builds with China General Nuclear Corporation and plans to
double its renewables capacity in the next decade. Besides, EDF came second out of 40 energy
companies when ranked for customer service by the Citizens Advice Bureau (July-September 2019), and
its Trustpilot score is 4.3/5”.

Or

EXAMPLE: ”For over 30 years, Capita has provided innovative technology solutions to various clients
from the government to businesses. From the start, Capita is driven by the core values of being open
and ingenious, making it a market leader with a market capitalization of over £600m and £4 billion
annual revenue. The scale of the business is impressive, with more than 60,000 employees and
operations around the world. At Capita, I would have the chance to work on a wide range of exciting
projects”.
- What do you know about Our Firm? (What this company does different respect
its competitors?)
This is question you are almost guaranteed to receive in any interview. And although you may think
it's a softball question—one easily answered by spouting out a few facts gleaned from a Google
search—this couldn't be further from the truth. In fact, the way in which you answer this question
may very well dictate how long your interview is, which questions you receive afterward, and
whether you receive a job offer or not.

As for what the question is trying to gauge, when interviewers pose this question, they're trying to
determine if you're interested enough in the position to research their firm's business, what you
researched, and how thorough this research was. In an interview, this question could very well be
your first opportunity to impress, so you should grab it with both hands and run with it. And if you
don't, or answer it badly, interviewers will likely begin to concentrate on the clock ticking, as well as
the work they have piled on their desks.

As for good places to begin your research in anticipation of having to answer this question, start with
the web site of the firm you're interviewing with. There, you'll likely find links to social media
accounts, the full name of the company, the names of any subsidiaries, a press release section, a
blog with firm news, a list of the senior managers at the firm along with bios, and much more. In
other words, a firm's web site has a mine of important information.

However, before you dive in too deep, decide what you want to know. You don’t just need
information; you need the right information. So, start by making a list of facts you want to know,
focusing on those that show you're very interested in the company and want to be a part of it.

Questions that you should be able to answer include: What's the company's mission? What are its
products and services? What's it best known for? What's the industry like in which it operates? Who
are its competitors? What's its company culture like? How did the firm start? When did it start?
What's currently happening at the firm (recent developments)? How has it grown in the last year? In
the last five years? Does it invest in its employees' development? Does it offer training?

A good place to start is the "about us" section of a firm's web site. More often than not, it'll tell you
how the company started, why it started, and what it has added to the industry. It should also tell
you what the firm's goals are, and may even hint at how they're planning to achieve them (and
perhaps how successfully they've been so far at achieving them). Of course, you'll also want to look
at the "careers" section of a firm's web site. It often tells you what perks and benefits are on offer
and how a firm invests in its people. And by browsing all the opportunities currently available, you
can gauge how much the firm is growing. Other sections to look at include "history," "management
team," "news," "financial information," and "press releases."

Once you have the answers to the aforementioned questions, and filed through the aforementioned
sections of a firm's web site, you should have all the information you need to put together an
enthusiastic monologue when asked what you know about the company. And a good way to think of
your monologue (your answer) is to try and sell the company back to the interviewer. Tell your
interviewer which company events, products, and services you've been impressed with as of late.
Tell your interviewer that you recently saw that they bought X company, did Y deal, and why you
thought these were good moves and will improve the firm's already strong offerings. Tell your
interviewer you recently saw an interview with the CEO or the COO and found it interesting that the
firm is now doing Z.

In other words, tell your interviewer about your positive impressions of the firm (what impressed
you during your research). And no matter what you say, don't say anything that you don't actually
believe. Which is to say: don't lie. Your interviewer will be able to pick up on that, and then all of
your research will have been for naught.

- Why this job/role?

Think of why this role, more like "What will you do" and then "Why would you be good at doing that."

A 2-step process. To that end, first, we need to understand the job description:

1. Copy and paste your job description into a document

2. Highlight 2 key areas a) Responsibilities - What you will do and b) Skills - The abilities you need to do
those responsibilities

3. Pick 2-3 responsibilities and 2-3 skills that you feel confident about talking about in your answer.
Either because you know what they are, or you think you can easily talk about them. You can choose
depending on the length of your response.

4. We explain what we would do (responsibilities) and how we would do it (skills) and, where possible,
why we can do that (proof - "I am an astronaut because I went to the moon

EXAMPLE: “I am interested in healthcare technology, which plays an increasingly significant part

in our society. Healthcare technologies simplify the experiences of patients and enhance the
work efficiency of healthcare providers. After completing the due diligence for pharmaceutical
companies during a banking internship, I realized the importance of improving data accessibility
in the healthcare industry. COVID-19 has revealed the pressure NHS faces, and the situation is
more serious in developing countries like China, where hospitals are already overloaded. The
ABC program attracts me with opportunities to use technology to improve efficiency in the
healthcare industry, alleviate resource shortfalls, and build on expertise in the healthcare
technology sector.

Or

EXAMPLE:

- Why should we hire you? or What sets you apart from the rest? WHY YOU?
What are your Skills?
This is often considered a “gotcha” question, as it can be meant to trip you up. That said, it isn’t all
that difficult. How you should view this question is an opportunity to sell yourself to the hiring
manager. Review your résumé and find three to four selling points that you can reference during the
interview.
First, look for summer job experience, skills, fellowships, internships, courses, or association
experience on your résumé that are a good match for the job in question. Try to develop at least two
success stories in which you cast yourself in a positive light and link this success to the job duties of
the new position.
Also, be sure to give concrete examples. If you are touting your writing skills, be sure to reference
the college award you won for best legal brief or a letter of reference from your summer internship
coordinator lauding your writing abilities.
One other thing to remember: It’s fine to note what you’ll gain by being hired, but the hiring
manager really doesn’t care about that. He or she needs to know that they are hiring someone who
will bring value to the firm and improve its bottom line—and you need to stress this in your
response.

REPEAT THE PROCESS FOR PREVIOUS ANSWER

Using the resources below, choose 2-6 unique facts about that company. Or as few/many facts to make
the time limit above.

We want to continue matching those skills and responsibilities. Matching up the lock (the job
description) with the key (your answers!)

You can use the skills from the previous answer and then add some more for good measure. Plus, you
want to end with something memorable.

Your greatest achievement is….

As ever, a good answer will make interviewers remember you.

Go back to the job description and:

1. Find five skills/responsibilities you can/have done

2. Match those skills with an experience that you have had

3. End with something memorable

EXAMPLE: “With three years' working experience in accounting covering accounts payable and
accounts receivable and four years' experience at ABC as an XYZ, I have excellent attention to
details, great experience with dealing with corporate clients, and can work to tight deadlines
and submit exceptional work while working on multiple projects with different teams. My work
experience means I have great communication skills, both written and verbally, and can think
critically to find the right answers. Plus, I am highly proficient in Microsoft Excel, SAP, and
Oracle Financials, which I used for several years in my previous roles”.

Or

EXAMPLE: “I am confident that my strengths in quantitative analysis and my experiences in

strategy development make me the right candidate for this position. At ABC, I studied millions
of data points on the XYZ automobile market using data mining and econometric tools. Based
on my findings, I proposed effective business strategies to shift the target client group to
younger car owners. Last year at DEF, I developed proficiency with combining market research
and client fundamentals to create optimal development strategies for clients. On top of these,
my study and internship experiences in both GHI and JKL familiarized me with both business
environments. These transferable skills will enable me to fit into the international, challenging,
and innovative working environment at MNO”.

- What are your expectations?

- What do you think this company does right? Do you think we do wrong?
It is a trick question in a private equity interview, and you shouldn’t fall for it.

First of all, no company ever does anything that’s wrong. Rather they have areas to improve
upon.

So, your answer would be in similar lines. Tell the interviewers about the strengths of the
company and what sorts of deals it has closed and how it added value to its clientele. However,
don’t talk about the improvement areas in a negative way; rather, mention subtly about what it
can improve upon and a few things about how it can improve.

- What makes a great private equity associate/analyst/deal maker?

Private equity firms want three things –

 To find new, recurring & better investment opportunities.

 To make more money
 To save more money.

As a private equity employee, your job would be the same. And you would answer this question
by telling something in the same line, like finding new and regular opportunities to create value,
delivering on the things you said you would execute, and saving cost through research and
operational efficiencies.

- Where do you see yourself in 5 years?

This question is especially tough if you’re at the beginning of your career, when your path is less clear
and you might be unsure where you’re headed. What’s most important is to show that you have
clear goals, and that the position you’re interviewing for makes sense as part of your trajectory.
Make sure that the goals you state are not only compatible with but also directly related to the role.
Most interviewers are proud of their companies and aren’t interested in hiring someone who sees a
job as merely a steppingstone to where they really want to be.

At the same time, hiring managers understand that no one aims to stay in a junior role forever. If
you’re interviewing for an entry-level position, talk about your passion for the industry and your
interest in advancing in your field. If the company employs more senior people in the same area, you
can talk about eventually gaining more responsibility and contributing more substantively to the
organization. The one exception is that at a very small company, it can come across as aggressive to
talk about moving up in the ranks—in this situation, focus on growing within the industry in general.

In addition, if you don't have a concrete set five-year plan, you want to focus on the immediate,
what you're going to do in the very near future, what your plan is if you're offered this job. By doing
this, you take the answer away from discussing any untrue and fluffy future plans. So, your answer
could look something like this:

“Five years is a long time, so while I do think a lot about my future and career, I find it's often difficult
to see very far ahead. In the past, it's been my experience that plans don't always work out the way I
envision. Inevitably, unforeseen events and opportunities arise that alter those plans. But what I
certainly plan on doing in the near future, and what I’d definitely plan to do here, is to do my best to
always be improving my skills and abilities, and learning as much as I can.

“My plan is to treat each day as a possibility to learn and progress, and I plan to work as hard as I can
and take on as much responsibility as I'm able to, in order to improve, progress, grow, and be more
effective in my position.

“That said, I know it takes time to grow, and careers are marathons, not sprints, so I'm willing to put
in the work and time, and trust that if I do that, opportunities will present themselves to me.

“Lastly, in the past, it's been my experience that pushing myself beyond what I thought I could do,
putting myself in uncomfortable positions, outside my comfort zones, have been among my best
learning experiences, and the best opportunities for growth. So I plan to do my best to remember to
welcome those opportunities in the near future, which hopefully will include working for your firm in
this position.”

Of course, this sample answer is not meant to be used if it doesn't ring true for you. But if it does ring
true, make sure to put it into your own words.

If you were an animal, song or fruit, what would you be?

They will ask you this question in order to see your personality

ANSWER: I would be a Monkey. WHY? Because Monkeys are clever and quick learners

- Tell me some soft skills that you posses

1. Compassion
Humans psychologically gravitate towards people who show compassion for others. Even in the
most difficult of situations at work (or in life), if you’re coming from a place of compassion (which, for
many people, can be difficult to do all the time), you’re going to get a good response in the end. And
so, telling a good story demonstrating that you’re a compassionate person can go a long way in an
interview.

For example, a common situation people face is working with others on a project who are not pulling
their weight. When working with others, we have to navigate this situation carefully, especially as a
manager, but as part of a team, too.

Here’s a situation I experienced where I was able to show some compassion: I was working with a
coworker who was very non-communicative. I always had to go up to him and ask for updates and
bug him. I felt like he didn’t want to do the work, and if I didn’t bug him about it, then nothing would
get done. What I ended up doing is asking if we could have a one-on-one chat and go for coffee (I
offered to buy), and he said, “Sure.”

I started the conversation by asking him how he was doing and if there was anything going on that
was bothering him, or if there was anything I could do to make his work go more smoothly. (Note
that I started the conversation focused on him, not on my own needs. This is key.) I also told him I
felt like I was bugging and nagging him all the time, and I wanted to make sure that I wasn’t annoying
him too much. He laughed and thanked me.

He then mentioned that he was going through a rough time, had a lot of demands on his time, and
was getting distracted a lot and found it difficult to focus. He said that he understood that I needed
him to get things done in order to get my job done, and he was trying.

The truth is he was struggling with a lot of work on his plate, and I told him I understood and that if
that was happening to me, I’d be feeling swamped and frustrated, too. He thanked me for
understanding, and told me he wasn’t sure how to move forward because he didn’t see the situation
changing. To which I suggested we talk to his manager to see if she could help resolve the issue,
maybe letting him work from home once day a week or coming up with another creative solution.
He said that was a worth a shot. So we set up a meeting with his manager.

It turned out that his manager had no idea that he was so swamped or what had been going on with
his tasks and said that certain things could be taken off his plate. This was the start of open
communication and a great working relationship moving forward.

A final note: I don’t believe that being compassionate means you’re a softy or a pushover. I believe it
means that you can get things done, move projects forward, and get great results, all while still
remembering to care about people.

2. Sound Judgment
I’ve often come across situations where an employee did (or did not do) something for me and I
couldn’t understand why. These situations frustrate me, and they certainly frustrate others as well.
And so, telling a good story in an interview about how you possess sound business judgment is a
great asset.

Here’s an example from my experience: My boss was in a meeting with some investors and he
contacted me via Slack (the company messenger that we use) and asked me for two things within
the next five minutes. He wrote, “Urgent request - need this STAT. Financial documents from Q1 and
Q2 from 3 years ago and we need lunch - no dietary restrictions.”

I tried messaging him back with a few questions, but there was no response, and I could see that he
was clearly very engaged in speaking with these investors and I had no way to contact him. In my
opinion, interrupting him for questions was not sound judgment at the time. I had no details of what
he really needed, so there was guesswork involved.

The action I took was I asked my colleague to go up the street to a nearby store and pick up some
sandwiches, salads, and some dessert bars. Meanwhile I focused on getting the financials they
needed. I went to the finance department and asked for help with an urgent matter. I had a
colleague in the department who was very helpful. I told her what the meeting was about, and she
deduced what my boss probably needed. Within seven minutes, I had everything to him. And later
on in the day, he sent me a message saying, “Thank you for today—you saved me.”

Now, even if what I passed along wasn’t exactly what he needed, I did the best I could with the time
and information I was provided. I knew the key was to act quickly, not perfectly.

3. Likeability (Airport Test)

In addition to those who are compassionate, humans gravitate towards people who are genuine and
authentically themselves. That is, people will like you more if they see you as a human being with
flaws, rather than someone who appears to be perfect. Humans don't feel right about someone who
seems "perfect"—it’s in our human nature to be suspicious, and it seems fake and disingenuous
when someone is too polished and too rehearsed. It doesn't give people a good feeling, and they
start sensing that something is off, like you’re hiding something or not being completely honest.

A good example of this occurs when candidates try to disguise their weaknesses as strengths by
saying that they “try too hard” or they “work too much.” A candidate who never makes a mistake or
never admits they did something wrong raises a red flag.

One way to fight against trying to be perfect is to remember to have fun in your interview. When
you're having fun, you’re in a relaxed state, in a good place, with good energy surrounding you.
Interviewing is a lot like a first date. If you’re pretending to be someone you’re not, even a little bit,
then if you’re hired (go out on more dates), you’re going to need to keep that dishonest persona.
And that leads to a bad fit.
For example, if you’re being interviewed and are asked about a particular project concerning
numbers or spreadsheets, and the truth is that you hate numbers and spreadsheets but you tell your
interviewer you love them, you can end up in that role that you’re not only not good at but also
secretly hate.

So, bring yourself to the interview, and be honest about who you are. If your interviewers like you,
great! And if they don’t like you, also great! Either way, you’re in a better place for being yourself
and giving yourself a chance to get hired for the right reasons.

AIRPORT TEST: is a theoretical or hypothetical question an interviewer asks themselves after

interviewing to measure the candidate Likeability: "Would I want to be stuck in an airport with
this person?" Essentially, the airport test is a way to gauge whether you are a likable candidate
and if the interviewer answers, "Yes," it is a good indication you are a good hire for their needs
and they could work well with you.

- Tell me about your weaknesses

This is one of the most difficult questions you may face in a job interview. This question is hard to
answer for several reasons. For starters, it’s hard for people to recognize their own flaws. What’s
more, it’s even more difficult for people to discuss those flaws in a situation such as a job interview,
in which they’re trying to impress an interviewer.

When answering this question, the first step is to admit that you have a weakness, and show you are
aware of it. Trying to pass off a strength as a weakness by saying something like “I’m a perfectionist”
or “I’m a people pleaser” will probably make your interviewer roll his or her eyes. Not only are these
answers contrived, but they make you seem conceited and oblivious to your faults (which, after all,
everybody has).

When choosing your weakness, pick one that won’t affect your ability to carry out the job at hand or
interfere with the company culture. For example, if you’re applying for a data scientist position, you
should refrain from admitting that your Excel skills are subpar (and truthfully, you probably shouldn’t
be applying to a data scientist position in the first place).

In general, you want to stay away from weaknesses that might raise a red flag, such as “I don’t work
well on group projects” or “I don’t take criticism well.” Instead, aim to select a weakness that most
people can relate to, such as struggling with time management or public speaking. You want to
choose something that is not a fixed character trait, but rather a skill upon which you can improve.
To that end, you should focus your answer not on the weakness itself, but rather on the actions you
took to combat it. For example, if you cite time management as a weakness, you could talk about
how you create a to-do list every day with your projects ranked by priority, and you block out time
on your calendar to work on each task.

Or, if you reveal public speaking to be your weakness, you could mention how you’ve enrolled in a
public speaking course at your local college. Demonstrating a desire to improve upon your weakness
is always a good idea. Even better, you could tell a story illustrating how you achieved success on a
project despite your public speaking weakness. For example, you could explain that you practiced a
major presentation every day, first with individual coworkers and then with larger groups of people,
so that when the big day finally arrived, you were exceptionally prepared and did a fantastic job on
the presentation. You want to show that you were able to overcome your weakness to achieve
success.

Remember that everyone has a weakness. The most important thing to your interviewer is how you
address it. By leveraging the weakness question to your advantage and ending your answer on a
positive note, you’ll ensure that you make a positive impression on your interviewer.

Example answer: my weaknesses are Public Speaking or be able to effective Delegate (they don’t
affect PE analyst role at all)

EXAMPLE ANSWER: Delegate, Don’t Speak-Up, Forget to Follow-Up

 “I’m not always good at delegating tasks, so sometimes the workload isn’t divided
evenly among team members.”
Why It’s Acceptable: This is a real weakness, but as an Analyst (or even Associate), you
won’t be delegating that many tasks on the job. Also, you don’t say that you’re too
much of a perfectionist or that you do too much of the work.
hurt you. But it doesn’t matter that much: Senior bankers have far more to lose since
they get paid based on closed deals.
 “I submit my projects and work on time, but sometimes I forget to follow up and check
to see what I need to change or improve.”
 “Sometimes I have trouble saying ‘no’ to requests from co-workers and classmates,
which makes it harder to complete my own work.” Why It’s Acceptable: This can be a
real weakness in certain situations (e.g., it’s 3 AM, and you need to finish a pitch book
by 7 AM), but it’s not necessarily a deal-breaker. Bankers do want you to help other
teams and respond to requests from others.
 Why It’s Acceptable: This is a legitimate weakness that could hurt you in IB, but it’s not
that serious a weakness… since you still get your work done. Also, in most cases, it’s up
to the senior bankers to respond and tell you what to fix or improve.

https://tutorials-breakingintowallstreet-com.s3.amazonaws.com/investment-banking-interview-
strengths-and-weaknesses.pdf

- Tell me about your greatest weakness (What are you worst at?)
You have to choose something that doesn’t affect your Analyst position (low role); Junior
analyst spend the majority of the time by working on presentation and Models, an not-harmful
weakness to say could be “ I often take too long to make decision”. This is good since you won’t
be required to take any in a Junio analyst position.

“My greatest weakness is that I often take too long to make a decision, even when I’ve settled
on the correct decision.”

For example, when I was running my math tutoring business in university, one of the tutors I
hired received very ‘mixed’ feedback from students. Some loved his style, and some hated it.
He wasn’t hurting the business, but he wasn’t a huge benefit, either, and he was difficult to deal
with since he always asked for higher pay. I knew I should have let him go within the first 2-3
months, but I waited 6 months to do it, which reduced the time I could spend on sales and
marketing and limited our growth. I’ve been working on this problem by forcing myself to make
a certain number of decisions each week, even if they’re small, to get into the habit of taking
action more quickly.”

- Tell me about your Strenghts

Your greatest strength should be a requirement of the role you’re applying for.

 Ability to Work in or Lead a Team – You could use the second or third stories to support
this one. Even though the second story is a “failure,” you still achieved some success
because you helped your clients get better outcomes.
 Attention to Detail – You could cite the first story to support this point and explain how
you found small details in the company’s financial reporting that others missed, which
saved the company time and money
  Work Ethic and Ability to Work Long, Stressful Hours – You could cite the third story to
support this point and explain how you had to meet a tight reporting deadline, which
was critical since the company was public

https://tutorials-breakingintowallstreet-com.s3.amazonaws.com/investment-banking-
interview-strengths-and-weaknesses.pdf

- Tell me your greatest Strenght (What are you best at?)

“My greatest strength is my communication ability. I work well with team members from
different backgrounds, and I make sure everyone is on the same page so there are no
misunderstandings.

For example, in my operational consulting internship, I worked in a 10-person marketing team,

and the initial work we produced wasn’t great. No one wanted to blame the others, but I knew
that several team members didn’t completely understand the tasks. I spoke with everyone and
figured out that several team members had science and engineering backgrounds and didn’t
know much about marketing, so I explained the concepts to them and then divided up the work
so that they could focus on the numbers and analysis instead. The client ended up liking our
campaigns and hiring the firm again.

- Could you explain your employment history gap?

If you have a work history gap, rest assured recruiters will ask you about that. In this sort of situation,
you need to stay focused and find a positive viewpoint.

While there are lots of reasons why you might have a gap on your resume, they tend to fall into
three main buckets:

1. you quit or were laid off and couldn't find a new job right away;
2. you were taking time out for personal and/or family reasons;
3. you were off doing something like traveling or working on a passion project.

After have provided you have the appropriate skills and experience for the job to land the interview
in the first place, the good news is that most interviewers will understand any one of these reasons.
The key here: at the interview stage, companies aren't looking for a reason to screen you out (that's
what the resume review is for); they're trying to assess if you can do the job, and whether you'll be a
good fit. Which leads us to our first tip for talking about your gap:

- BE HONEST

There's no shame in admitting that you were let go as part of a downsizing, or because your previous
employer changed strategy.

The bottom line: it's better to be straightforward with the truth than to appear as if you're
concealing something. Having said that, how you phrase the truth is also important--which brings us
to the next tip:

- ACCENTUATE THE POSITIVE

When talking about your time out of the workforce, don't focus on the downside or use negative
language. Sure, you might resent the amount of time it's taken to find a new opportunity, but
mentioning that will only call attention to how long you've been out, and could make the interviewer
wonder what they're missing.

Waited for Job Opportunity: instead of saying "I haven't been able to find anything since being laid
off" or "I've been trying to get something ever since" use language like "I've been waiting for the
right opportunity." That demonstrates to the employer that you've put some thought into what
you're looking for, and aren't just looking for anything with a paycheck attached

Family Reasons: if family is the reason for your absence, present it as an opportunity, rather than a
burden. Avoid phrases like "I had to take care of my kids/parents/a sick relative" or anything along
the lines of "the cost of childcare was so high there was no point in working." Instead, try to present
your absence as a positive choice: "I wanted to spend time with my parents/kids/relative while I had
the chance. Now I'm ready to get back to work."

- TALK ABOUT WHAT YOU HAVE BEEN DOING

Again, the key to dealing with a resume gap is to provide an answer that lets an interviewer know
that your skills and ambition haven't atrophied away from the workforce. So if you've been doing
anything to keep those skills current—whether it's online classes, volunteer work, networking, or
just keeping up with industry news—you should highlight that when discussing what you've been
doing.

Even if you took off for a year of no-strings-attached travel, you can position it as having taken the
opportunity to learn about new cultures.

As with so much of the job-search process, the key to answering this question is an exercise in
marketing: the skill lies in knowing which details to accentuate, and which to leave out. As such, it
pays to figure out those details in advance, and refine them into an answer that, when delivered
confidently, will ensure that the interviewer remembers what you said, rather than the gap on your
resume.

EXAMPLE ANSWER: “

There are many ways to do it, and here are a couple of solutions (if these are in fact true; don’t make
something up here):

a) I took a break to go abroad and perfect the (Spanish, French…) second language, and

b) I took a pause because I wanted to complete a few more professional courses (then name them).
- Tell me a Joke:

 Keep it clean. It should be obvious, but no foul language or scatalogical humour! Only
tell a joke if you’d tell it to a room full of young children. For example: “Knock knock.
(Who’s there?) Broken pencil. (Broken pencil who?) Nevermind… It’s pointless…”
 Don’t be offensive. This means anything sexist, racist, ageist, religious, blonde-bashing
or weight-related is probably off the table. You don’t know your interviewer well, so you
don’t know what might offend. For example: “A priest, a rabbi, a monk, a prostitute, a
gay guy, a horse, an elephant, a doctor and a lawyer walk into a bar. The bartender says
‘What is this? Some kind of joke?’"
 Keep it short. In fact, the shorter the better. Long jokes are harder to remember and
tell well, and you risk losing your audience’s interest. Plus, your interview is not about
the joke. For example: "What did the fish say when he ran into the concrete wall? Dam."
 Play to your audience. People love a joke that makes them feel good about themselves:
an engineer will love a joke where the engineer gets the last laugh, and a lawyer will
love one where the lawyer isn’t the butt of the joke. For example: “Normal people
believe that if it ain't broke, don't fix it. Engineers believe that if it ain't broke, it doesn't
have enough features yet.” (Be careful, however, that you’re telling it to the right
person; an HR professional may or may not get your hilarious data science joke — see
the next tip.)
 Don’t make them feel stupid. Avoid jokes that require too much advanced knowledge
of a subject. For example: “There are 10 types of people in the world. Those who
understand binary, those who don't, and those that weren't expecting a base 3 joke.”
 Puns are always punny. People love puns and riddles — even if it gets a groan. Like this
one: "Why couldn't the bicycle stand up? Because it was two tired."
 Don’t be too topical. If you tell a joke about something that just happened in pop culture
or the media, you run the risk that the other person won’t have a frame of reference.
Stick with the classics, like: “Why did the scarecrow get the job? He was outstanding in
his field.”

EXAMPLE ANSWER – JOKE 1

Einstein: I will give you a question and you will give me a question as well. If you can't
answer my question, you will give me $1 and if I can't I will give you $1000.

Mr Bean: OK.

Einstein gives Mr Bean a hard quest and Mr Bean gives him $1.

Einstein : Now it is your turn.

Mr Bean: What is the animal which has 4 legs, when it crosses the street it has 3 and when
it goes back, it has 5 ?

Einstein thinks very hard but fails to give the answer and pays $1000 to Mr Bean.

Einstein: But, what animal is that, Mr Bean?

Mr Bean gives $1 to Einstein.

EXAMPLE ANSWER – JOKE 2

A recruiter asks a job candidate, “What’s your biggest weakness?”

The job applicant replies, “I don’t know when to quit.”
“You’re hired.”
“I quit.”

EXAMPLE ANSWER – JOKE 3

I was in a job interview today when the manager handed me his laptop and said, “I want you to
try and sell this to me.”
So I put it under my arm, walked out of the building and went home. Eventually, he called
my cell phone and said, “Bring back my laptop!”

I said, “$200 and it’s yours.”

IN ORDER TO BOOST YOUR LIKEABILITY, make funny jokes in

response to some interview questions:

Making some jokes with the Interviewer absolutely PAYS OUT!. Contrary to what you
may have heard, interviewers are human beings, too. As much as they are considering your
qualifications and job-related capabilities, they are also asking themselves whether they’d
like to sit next to you every day of their working lives. And who would YOU rather sit next
to? Someone who can bring a little levity to the workday and elevate the mood around
them? Or a stone-faced automaton who never cracks a smile? Right. Me neither.

Of course, you should be smart about it. Keep the humor appropriate, respectful, and free of
any bad language. As much as you may look to take your cues from the interviewer, he or
she will also take some of their cues from you. Keeping it friendly and light hearted as far as
possible will serve you well.

Example of Jokes in some Q&A:

- Have you applied anywhere else? Why? Aren’t you serious about joining us?

JOKE ANSWER: No sir. It’s just that I really needed some practice before I had my interview
here!

- What is your greatest strength?

JOKE ANSWER: I have big biceps, I can lift you with a single hand

- Why should we hire you?

JOKE ANSWER: Because I’m the best person on this planet. Nobody can even dare to come
closer to me

- What are your salary expectations?

JOKE ANSWER: How much can you afford? At least five times as much as you earn!
- How long do you plan to stay here?
Long time. I’m here to stay and to become part of the family. You must be confident and show a
positive attitude, expressing hopes that you will stick around for a long time.

- What books are you currently reading?

- What motivates/inspires you and why?

- What is important for me to know that I haven’t asked you?

-What is something you had to fight for in life?

-Tell me about something that is not in your resume

3-BEHAVIOURAL/COMPETENCY Q&A

By far, the most common type of interview question you will come across.

A competency is a skill. The question tests that you have a skill (competence) for a job and then
asks you to provide proof with an example using the S.T.A.R. Technique.

Interviewers use competency questions, as it is still the best way to test if you have the skills
needed for the job and provide proof through your actions
-USE THE S.T.A.R. METHOD
This is the part that seems to give people the most problems. To verify the competences and
behavior of potential employees, interviewers often use what is called the STAR method. STAR is an
acronym that stands for Situation, Task, Action, and Result. Questions that are included in the STAR
method are quite easy to recognize, as they usually require you to give real examples about how you
handled certain situations. In all your answers, you should aim to include all four concepts of the
method.

1. Please describe the Situation and when did it take place (10%)
2. Explain the Task and what was the objective (15%)
3. Give details about the Action you took to achieve this (70%)
4. Close with the Result of your action. (5%)

The ACTION is what matters. What you did and how you did it. We prove the action through
examples.

Employers use the STAR method for a few reasons: they want to make sure you have the experience
you claim to have, they want to understand your way of thinking, and because the method is an
effective method to compare candidates.

Our answers should be no more than 2 minutes long or 250 words

HOW TO USE THE S.T.A.R. METHOD

1. Understand what skill is being asked for in the question (see example below)
2. Provide an example where you used that skill in Situation and Task
3. Prove you understand how to use that skill in Action
4. End with a clear Result

EXAMPLE OF A S.T.A.R. METHOD ANSWER

Tell me about a time when you worked in a team? (the skill they are testing for is
teamwork)

Situation

During my postgraduate studies at Dundee University, I was put into a team of four for
our asset management module

Task
We had to choose a company and carry out a financial analysis using Excel, and then
present the Strengths and Weaknesses of that company. As well as operating a
mathematical model to show whether we believed it would be a good investment or
not. We chose Apple.

Action

The words and sentences in bold demonstrate how we used teamwork to get our result
As I didn’t have a background in Finance, I deferred the leadership to one of my
classmates. While they discussed giving out tasks, I suggested we should each do
something which plays to our strengths. Two of our team would carry out a financial
analysis of Apple. One would create the model based on the study. Then I would put the
presentation together in PowerPoint and lead the presentation. We have a heavy
workload, and several times we were falling behind, so I would call each member and
see if they needed help or if there was anything I could do. I helped to coordinate
communication and resolve any differences between the team.

Result

Our presentation went well, and we received a high grade from our tutor, who was
impressed with the depth of our analysis

WHAT EXAMPLES SHOULD I USE?

We use the following order when picking examples with work experience ALWAYS being
the best type of example to use.

If you don’t have work experience, keep going down the list.

1. Work experience

2. Voluntary experience

3. Academic experience

4. Extracurricular activities (societies and clubs)

5. Personal

Honestly, items 2 to 4 are as good as each other. Just remember to avoid using personal
experiences
(TIP: Choose 5-6 examples. With one being negative (where something went wrong but you
learned something), ALWAYS choose examples you can easily talk about and are proud of. If
you find yourself getting bored by your example, choose something else.)

3 Story-Telling Tactics:
First: ask yourself how you feel about a story before you decide to share it. Your feeling about your
story will largely determine how your listener receives and perceives it. For example, if you’re feeling
that a story might sound too braggy, or not be what your interviewers are looking for, or like it
contains too much information, then your doubt and uncertainty about the story will impact how
you tell it. As a result, this will impact how the interviewer receives your story. So, before you decide
to share a story, you want to make sure you’re proud of it, it’s a solid story, and it’s worth sharing.

Second: to include specific details that your interviewers will not only find interesting but also are
applicable to the role you’re applying for. This means your story’s implications will be clear—they’ll
highlight experiences you’ve had in the past that will inform your future success. Note, though, that
your stories don’t have to be directly related to the role. You could be applying for a completely
different role than you’ve had in the past, so your experience might be indirectly related. That’s
okay. Just make sure that your story’s message is clear and relevant.

Third: clearly explain the results of your story and what you learned. That is, you want to connect the
essence of your story to the role you’re applying for, explaining how they’re related (even if you
think it’s obvious) and how you think about your experiences. Interviewers are always judging
candidates on how they process and put into context their past experiences.

Now that you understand the storytelling basics, here are two sample answers, using these
storytelling tactics, to two of the most widely asked interview questions.

-Tell me about a time you failed and what you learned from it
This is not a fluff question meant to trip you up by surreptitiously getting at some weakness of yours.
Instead it's used to find out if you really do learn from your mistakes and, if so, how you learn from
them, as well as how you might be able to grow as an employee and thus help the company to
which you're applying. The question might also gauge how self-aware you are, how honest and
trustworthy you are, and how adventurous, bold, and risky you are.

In order to prepare for this question, it's a good idea to give your answer some serious thought. You
need to reflect on those times when you failed, whether they are at work, in a sport, in an academic
setting, or in a relationship. And you should ask yourself several questions and then answer them
truthfully: What did this failure feel like? What happened as a result of this failure? Where did it lead
me? How did it change my thinking and my actions? What did it teach me about myself? What did I
do differently afterward? What did I have to do to change? How did I go about changing? And what
do I now do differently and/or hope to do differently?

When you answer the "failure" question make sure to 1) answer it (some interviewees will do the
worst possible thing and not answer it, saying they have not failed); 2) answer it honestly (be sincere
and make it a true failure, not something like "I received an A-, my only A- in my college career, in
Econ 407 and thus I learned … "); and 3) concentrate your answer on the second part of the question
(focus not on the failure itself but on the things you've learned, how you've grown and how, now,
you do something differently as a result of your failure).

The truth is, which experienced employers and employees know well, you will fail at some point on
the job, and so interviewers want to know how you will deal with that failure and if you will truly
learn and grow from it, or if you will shut down and shrivel up. Ideally, if you're asked this question,
you will want to get across that you are resilient, that you will not let failure stop you, and that you
use failure as a way to progress, grow, develop, change, and learn.
EXAMPLE ANSWER:
“Early in my career I made the call to hire someone who, in the end, didn’t work out. I owned up to
this mistake, made sure to clearly articulate my mistake, and learned what I could have done better
in the interview process.

I learned about the characteristics that set A players apart from B and C players. And I learned to ask
the right questions early in the search process to avoid wasting time and resources later. Now, I’m
extra careful not to hold back on asking hard questions, both during the interview process and when
checking references. Now I look for different things in interviews, such as how someone works in
teams and how they deal with critical feedback.

Because of this experience, I became a much better interviewer and can better determine if
someone would be a good fit or not. Also, I really appreciate how difficult hiring can be, so I’m happy
to elaborate on anything that you’d like to know about me and my candidacy”.

- Tell me about a time you demonstrated leadership and achieved success as a

result (leadership role you’ve held)
EXAMPLE ANSWER:
“A year ago, I was transferred into a new department at work. I was assigned as the new team lead.
Before I was introduced, the team was disgruntled and had low morale—the department wasn’t
staffed properly and turnover was high. There were a lot of office politics going on, and people were
burned out and unhappy.

So, I scheduled one-on-one meetings with each team member to understand their issues and
concerns. I wanted each team member to feel heard. I asked them each what they thought I should
do next and what the biggest challenges the team were facing. I also asked what they thought was
holding the team back.

After meeting with each team member, I followed up with everyone as a group. I’d determined from
my meetings that the most important thing to do was take quick action to repair some of the issues
that were causing the most stress. These issues included managers emailing and Slacking some team
members at all hours of the day, including late at night and on the weekends. It also included
scheduling too many meetings during the week, and the meetings lasting far too long.

So, I instilled some new protocols around emailing and Slacking, and shortened meeting times. Just
by these small initiatives, the results were impressive. Morale significantly improved after 90 days. It
was apparent in the energy of the department. Everyone was in much better spirits and much more
productive. From these actions, the department’s turnover rate was brought down from 40 percent
to zero.

I think this example demonstrates the way that I lead to get results. My team still talks about the
turnaround sometimes, and I’m proud of this because even though I know there were many ways to
turn this around, the actions I took were aligned with how I would have liked someone to manage
something like this. I think it’s important for employees to be individually heard even when we can’t
act on all their suggestions”.

-Tell me about a time you were on a team and a team member wasn’t pulling
their weight and how you addressed the situation
One way to begin this is answer is by saying that you’ve gained a lot of experience leading teams and
groups in college and in your past jobs, and have encountered this situation a few times. Then you
could say that you’ve found the key first step to dealing with an underperforming colleague was
honest communication. After that, here’s what a good answer might look like:

“In one of my past experiences, I met with the co-worker privately, explained my concerns about the
quality of his work, and asked him to explain the cause of the problem. You’d be surprised at what a
little honest one-to-one conversation can do. The co-worker said he knew that his work had been
subpar lately but was afraid to address the issue with me and other members of the team. He told
me that he simply felt overwhelmed by the project and that his concentration might also be affected
by the fact that he had just become a new father and was only getting three hours of sleep a night.
(In other situations, employees have told me that they didn’t understand the assigned tasks or that
they were having trouble with a difficult colleague who was a key member of the project team.)

“Once the channels of communication were open, I then devised a solution to address the issue. In
this instance, I reviewed the project with the co-worker and asked him to identify any problem
areas. I also allowed him to work a flexible schedule that better fit with his new role as a father. I
then revisited the project with the entire team to ensure that all aspects were understood, the
deadlines were realistic, and work duties were fairly allotted among the staff. The project was
completed on time, and the ‘problem co-worker’ prospered as a result of the more open lines of
communication and the adjustment of his work schedule.”

- Tell me about a time you had a conflict with a co-worker and how you dealt
with it. (difficult conversation)
The answer to this question is not, “I’ve never had a conflict.” Inevitably, conflicts arise in the
workplace, and employers want to know that you will be able to resolve them effectively. The best
situations to talk about in response to this question deal with work-related (not personal) conflicts.

For example, you might describe a time where you and a colleague differed on your approach to an
assignment. Then, explain the steps you took to come to an agreement. The anecdote should not
end with a description of who “won,” but rather how you reached a compromise with your
colleague.

This question illustrates why it is so important to prepare for tough interview questions—while you
may be able to rattle off a list of colleagues who irk you at a moment’s notice, it is much more
difficult to come up with a concrete example of a conflict that ended well. Think back on all the
projects you have worked on—a “conflict” doesn’t necessarily have to be heated or argumentative
to qualify as an answer to this question.

It’s also important to understand that, with this question, your interviewer is trying to find out how
you work with others, to see whether you surmount challenging work dynamics or flounder under
them. In your answer, do not focus on what the other person did wrong, but rather on what you did
to overcome the issue in order to successfully complete the task at hand. Whether that was setting
up meetings to hold a procrastinating co-worker accountable for making deadlines, or agreeing to
compromise on an issue to manage differing viewpoints, you should aim to demonstrate your
willingness to take the initiative and your ability to work well on a team.
-Tell me about a situation where you pro-actively solved a problem or identified a
new opportunity that contributed positively to an organization with which you are
or were previously affiliated.

-Talk about the leadership roles you’ve held (both elected and appointed).
-How would you describe your management style
-How do you think you’ll balance the demands of this job with other things that are
important to you?
-If you have multiple offers, how will you decide which one to take?

4-INDUSTRY Q&A

- Tell me about a recent News regard Private Equity

-Take any sector and tell me how would you predict its growth? Whom will you
approach for the relevant data?
- Which industry are you interested in and why?
- Tell me about a transaction we recently announced that you found interesting
and why?
- Walk me through a typical PE buy side process
- Tell me about some companies you follow and why?
- What gets you excited about this job and industry?

- How did the Credit Crisis (2008) happened?

SHORT Explanation: Predatory lending targeting low-income homebuyers, excessive risk-taking
by global financial institutions, and the bursting of the United States housing bubble culminated
in a "perfect storm." Mortgage-backed securities (MBS) tied to American real estate, as well as
a vast web of derivatives linked to those MBS, collapsed in value. Financial institutions
worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman
Brothers on September 15, 2008, and a subsequent international banking crisis.
MEDIUM Explanation: Although this can't be summed up in a sentence, paragraph, chapter, or even
a book, there were a number of important events that caused and/or fueled the crisis. First, over
several years, consumer and corporate borrowing reached record levels due to low interest rates
and friendly borrowing conditions. This led to a significant expansion in corporate growth from
personal spending. In this expansionary cycle, many individuals and corporations were lent money
they should not have been, which led to a massive amount of supply in the new-issue securities
markets, most notably the mortgage market and the credit markets. People were buying new homes
at record rates, and companies were completing a record number of deals.

However, as demand from investors for these new types of assets evaporated and the economy
slowed, a massive amount of new supply that had not yet been sold (new mortgages, LBOs, etc.) was
stuck in the system. These new deals were then sold at a discount (or never even sold at all), thus
depressing market values. Furthermore, this oversupply and the effects of the slowing economy led
to increased consumer defaults on mortgages, increased corporate defaults on loans and bonds,
massive write-downs by financial institutions, and significant losses in the financial markets.

The true difference between this and other cycles was the record amount of consumer and
corporate leverage, as well as the creation of significant investor value that led to a period of
insatiable demand and new innovative financial products. However, once the demand slowed in
2007, the markets were left to deal with the repercussions.

LARGE Explanation:

3 CAUSES
 Excessive Risk-taking in a favorable Macroeconomic Environment
Economic conditions in the United States and other countries were favorable. Economic
growth was strong and stable, and rates of inflation, unemployment and interest were
relatively low. In this environment, house prices grew strongly. Expectations that house
prices would continue to rise led households, in the United States especially, to borrow
imprudently to purchase and build houses. A similar expectation on house prices also
led property developers and households in European countries (such as Iceland, Ireland,
Spain and some countries in Eastern Europe) to borrow excessively. Many of the
mortgage loans, especially in the United States, were for amounts close to (or even
above) the purchase price of a house. A large share of such risky borrowing was done by
investors seeking to make short-term profits by ‘flipping’ houses and by ‘subprime’
borrowers (who have higher default risks, mainly because their income and wealth are
relatively low and/or they have missed loan repayments in the past).
Banks and other lenders were willing to make increasingly large volumes of risky loans for a
range of reasons:
 Competition increased between individual lenders to extend ever-larger amounts of
housing loans that, because of the good economic environment, seemed to be very
profitable at the time.
 Many lenders providing housing loans did not closely assess borrowers’ abilities to make
loan repayments. This also reflected the widespread presumption that favorable
conditions would continue. Additionally, lenders had little incentive to take care in their
lending decisions because they did not expect to bear any losses. Instead, they sold
large amounts of loans to investors, usually in the form of loan packages called
‘mortgage-backed securities’ (MBS), which consisted of thousands of individual
mortgage loans of varying quality. Over time, MBS products became increasingly
complex and opaque, but continued to be rated by external agencies as if they were
very safe.
 Investors who purchased MBS products mistakenly thought that they were buying a
very low risk asset: even if some mortgage loans in the package were not repaid, it was
assumed that most loans would continue to be repaid. These investors included large US
banks, as well as foreign banks from Europe and other economies that sought higher
returns than could be achieved in their local markets.

 Increased borrowing by banks and investors

In the lead up to the GFC, banks and other investors in the United States and abroad
borrowed increasing amounts to expand their lending and purchase MBS products.
Borrowing money to purchase an asset (known as an increase in leverage) magnifies
potential profits but also magnifies potential losses.[ 1 ] As a result, when house prices
began to fall, banks and investors incurred large losses because they had borrowed so
much.
Additionally, banks and some investors increasingly borrowed money for very short
periods, including overnight, to purchase assets that could not be sold quickly.
Consequently, they became increasingly reliant on lenders – which included other banks
– extending new loans as existing short-term loans were repaid.

 Regulation and Policy errors

Regulation of subprime lending and MBS products was too lax. In particular, there was
insufficient regulation of the institutions that created and sold the complex and opaque
MBS to investors. Not only were many individual borrowers provided with loans so large
 that they were unlikely to be able to repay them, but fraud was increasingly common –
such as overstating a borrower's income and over-promising investors on the safety of
the MBS products they were being sold.

In addition, as the crisis unfolded, many central banks and governments did not fully
recognize the extent to which bad loans had been extended during the boom and the
many ways in which mortgage losses were spreading through the financial system.

HOW THE CRISIS DEVELOPED/EVOLVED

 US house prices fell, borrowers missed repayments

The catalysts for the GFC were falling US house prices and a rising number of borrowers unable
to repay their loans. House prices in the United States peaked around mid 2006, coinciding with
a rapidly rising supply of newly built houses in some areas. As house prices began to fall, the
share of borrowers that failed to make their loan repayments began to rise. Loan repayments
were particularly sensitive to house prices in the United States because the proportion of US
households (both owner-occupiers and investors) with large debts had risen a lot during the
boom and was higher than in other countries.

 Stresses in the financial system

Stresses in the financial system first emerged clearly around mid 2007. Some lenders and
investors began to incur large losses because many of the houses they repossessed after the
borrowers missed repayments could only be sold at prices below the loan balance. Relatedly,
investors became less willing to purchase MBS products and were actively trying to sell their
holdings. As a result, MBS prices declined, which reduced the value of MBS and thus the net
worth of MBS investors. In turn, investors who had purchased MBS with short-term loans found
it much more difficult to roll over these loans, which further exacerbated MBS selling and
declines in MBS prices.

 Spillovers to other countries

As noted above, foreign banks were active participants in the US housing market during the
boom, including purchasing MBS (with short-term US dollar funding). US banks also had
substantial operations in other countries. These interconnections provided a channel for the
problems in the US housing market to spill over to financial systems and economies in other
countries.

 Failure of financial firms, panic in financial markets

Financial stresses peaked following the failure of the US financial firm Lehman Brothers in
September 2008. Together with the failure or near failure of a range of other financial firms
around that time, this triggered a panic in financial markets globally. Investors began pulling
their money out of banks and investment funds around the world as they did not know who
might be next to fail and how exposed each institution was to subprime and other distressed
loans. Consequently, financial markets became dysfunctional as everyone tried to sell at the
same time and many institutions wanting new financing could not obtain it. Businesses also
became much less willing to invest and households less willing to spend as confidence
collapsed. As a result, the United States and some other economies fell into their deepest
recessions since the Great Depression.

POLICY RESPONSES
Until September 2008, the main policy response to the crisis came from central banks that
lowered interest rates to stimulate economic activity, which began to slow in late 2007.
However, the policy response ramped up following the collapse of Lehman Brothers and the
downturn in global growth.

 Lower interest rates

Central banks lowered interest rates rapidly to very low levels (often near zero); lent large
amounts of money to banks and other institutions with good assets that could not borrow in
financial markets; and purchased a substantial amount of financial securities to support
dysfunctional markets and to stimulate economic activity once policy interest rates were near
zero (known as ‘quantitative easing’).

 Increased government spending

Governments increased their spending to stimulate demand and support employment
throughout the economy; guaranteed deposits and bank bonds to shore up confidence in
financial firms; and purchased ownership stakes in some banks and other financial firms to
prevent bankruptcies that could have exacerbated the panic in financial markets.

Although the global economy experienced its sharpest slowdown since the Great Depression,
the policy response prevented a global depression. Nevertheless, millions of people lost their
jobs, their homes and large amounts of their wealth. Many economies also recovered much
more slowly from the GFC than previous recessions that were not associated with financial
crises. For example, the US unemployment rate only returned to pre-crisis levels in 2016, about
nine years after the onset of the crisis.

 Stronger oversight of financial firms

In response to the crisis, regulators strengthened their oversight of banks and other financial
institutions. Among many new global regulations, banks must now assess more closely the risk
of the loans they are providing and use more resilient funding sources. For example, banks
must now operate with lower leverage and can’t use as many short-term loans to fund the
loans that they make to their customers. Regulators are also more vigilant about the ways in
which risks can spread throughout the financial system, and require actions to prevent the
spreading of risks.

- Why Private Equity?

It’s important to answer with a positive spin. In your answer, the interviewer is looking to learn more
about your professional goals and ensure you know what you’re getting into. A well thought out
answer should:

 Show your passion for and knowledge of the PE industry.

 Demonstrate your wish to apply your skillsets to building businesses and creating value.
 Establish your rationale for choosing PE specifically, as opposed to investment banking or a hedge
fund

Do your best to convey that you enjoy learning about different businesses and that you’re invested
in the process of helping to grow the businesses you work for. Highlight specific components
about the job that interest you, like financial modeling and due diligence processes. And don’t be
afraid to discuss your overarching career goals beyond this current role.
If you have a background in banking, discuss your passion for investing and desire to grow
beyond the P&L aspects of a business. Be sure to leverage your previous deal management and
relationship building skills and discuss how you’ll apply those to this role. If your background is
in consulting, touch upon your experience working with clients’ management teams and how the
operational knowledge you’ve developed during your time with consultancies will prove
beneficial in identifying investment avenues.
Be succinct, yet specific, and don’t feel pressured to show off everything you know about the
private equity industry. Remember, you don’t have to cover all the bases. Follow up questions will
come.

-Follow Up Question:
They’re designed to guide you in fleshing out your answer to a previous question and providing
additional context before the interviewer moves on to a new topic. In addition to wanting to hear why
you chose a career in PE, your interviewer might want to know why you didn’t choose certain other
careers. Below are just a few common questions that may follow “Why private equity?”

1. Why not Investment Banking or Consulting?

 A possible answer might emphasize that while you enjoy the financial modeling and
analytical aspect of the job, as a PE professional, you want to be more involved in how
businesses evolve. As opposed to a consulting career, you might say that you want to be more
involved in ‘implementing’ the operational improvements. PE can give you the perfect
launchpad for a long-term career in investing.

2. Why not Hedge Funds?

For this, you can use the difference between private equity and hedge funds to show your
disposition toward PE. You may say, while in both private equity and hedge funds you will
get to perform the role of an investor, hedge funds won’t give you an option to CONTROL
your portfolio companies. PE allows you to be an active investor as well as actively add value
to the businesses. It’s the art of a long-term view that sets PE above HF for you.

3. Why not Venture Capital?

This can be tricky, as both PE and VC invest in companies and accompany them in their
growth. But still, there are subtle differences between the two. PE deals are a bit more
complex and elaborate than VC deals. VC firms enter in the early stage of a business to help
them finance the venture, while PE firms invest in fully established firms (that may be under
financial stress). Furthermore, VC investments are made not in the entire company but only in
a portion, while PE firms typically acquire whole enterprises. Also, VC investments are all
about equity, while PE will give you exposure to equity as well as debt financing.

- What is the difference between Private Equity and Wealth management?

- Do you think that the market for mega-cap LBO/M&A is over?

To answer this private equity interview question, you need to be thorough with the current
events in your industry. Read up everything you can. And ask your connections – “what’s new in
the market?” and soak up knowledge as much as you can. A time was there when the industry
was ready for a $100 billion LBO deal. But recently, this is very infrequent events. You can pick
something you have worked on before (if you ever worked on a mega-cap fund) and explain
why that isn’t a possibility as of now.

- What do you think will happen to LBO/M&A in the next 10 years?

- XYZ Company has been struggling with real estate. What would you do: to
break it up or to try reinvigorating the business?
You can expect typical hypothetical private equity interview questions like this. All you need to
know for answering this question is to be informed about any important, recent event in a
similar industry.

- If you have any chance to go after a company ABC, would you go after it? And
why?
This is another typical, hypothetical private equity interview question. If the interviewer is
talking about company S, maybe this company is in the news.

If you see that this company has a lot of debt and no possible advantages, of course, you should
say “no,” and if the company has decent financial statements, but there are few operational
issues, you need to explain how you would take up the challenge

5-TECHNICAL Q&A

- How do you profitably operate a Lemonade stand?

- Rank from highest to lowest beta: a midstream energy company, a tech startup,
and a slot machine

- If you were buying a single oil company well, would you finance it with equity or
debt and why?
- Why would companies with same EBITDA worth different amounts

-What does it mean to have Negative Net Working Capital? And describe a business
that would naturally operate with negative net working capital

- How should rising interest rates affect what I am willing to pay for an asset?

- What Industry trends you will look at when you are looking for a potential
investment? (What are the candidate’s criteria for an LBO? Or What makes for an
attractive LBO target?)
4. Price: Almost any deal can work at the right price, but if the price is too high (company is
too expensive) chances of failure are high

 Market position & competitive advantage: Before LBO, it’s important to know the
market position & competitive advantage of the potential investment. The
characteristics would include high entry barriers, strong customer relationships &
high switching costs.
 Stable & recurring cash flows: Without continuous and stable cash flow, no PE firm
would buy an investment.
 Multiple drivers to trigger growth: This one is crucial. Only one driver wouldn’t propel
the company to an expansive stage. More drivers, better-diversified growth strategies,
and better execution would be essential for long-term growth.
 Strong management: Most of the companies in the industry should have a strong
management team so that the PE firm can get strategic guidance toward a better future.
 Low debt
 Non-capital Intensive companies (Low CAPEX)

These are the keys that a PE investor would look at before thinking of an LBO. Other than these,
he would also look at changing habits of the customer, enhanced automation, application of
disruptive technologies, etc.

- If I would like to protect my downside, how would I structure the investment?

The best way to protect the downside is to go for a structured deal, even at the later stage of
the investment. For example, in 2010, Temasek invested into GMR Energy through a structured
paper which needs to be compulsorily converted into equity. Temasek invested $200 million in
GMR through its fully owned subsidiary Claymore Investments.

- Tell me what of our company’s investment did you like the most and why

To answer this question, all you need to do is to research the company before you ever go for
the interview. Look at their website. Find out about their investments. And browse through
every possible news about the firm. And then analyze what you like and what you didn’t like.

And then make a report which can tell them about your preference. If you can explain a little
and show them the report, they will understand that you have already done your homework
and you are very much sincere about this job.

- If you can look into only one financial statement, what would it be and why?

Most people choose the income statement because of the accrual accounting method. But the
most important statement to analyze before anything is the cash flow statement because,
through cash flow statement, only you can see the real picture of how much cash is coming in
and how much is going out irrespective of hefty profits and revenues.

- How would you verify the information in a deal book given by an investment
banker?

Usually, you need to make a question framework to check the information investment banker
has mentioned in the deal book.

Bill Snow, author of the Mergers & Acquisitions for Dummies has mentioned that you can begin
to ask the following questions to start the reference check and later if you need to dig deep,
you need to do so as well –

Ask yourself:
  Did they provide me the value that I paid for?
 Did they maintain integrity (did they do what they said they would do)?
 Did they attend all the meetings they said they would attend?
 If the buyer has tried to re-trade the deal, how the investment banker has handled it?
 Without them, could I do it?

- How would you handle a situation where you have a question, and no-one has an
answer?

This is a private equity interview question that will test your emotional agility in an
interview. When this question is asked, your answer would be brief and to the point.

You may say something like – “According to me, everything is figure-out-able. Let’s say no-one
has an answer to the question I have. Now if we talk about “no-one,” the first thing is who
these people are? These people are generally relatives, peer-group, friends, or family members.
But what if I can manage to ask a stranger or an expert? In this age of massive connectivity, not
getting an answer to a question is the rarest thing.”

- If your investment increased by 25% and now you have $100, how much did you
begin with in the first place?

It is a simple private equity interview question, and the interviewer wants to see how fast you
can answer it. A 25% increase on the principal means a 20% increase on the principal + interest.

That means you have started with = [100 – (100 * 20%0] = $80.

Investment = Principal (Amount borrowed from the Bank and invested)

From the Bank we borrow the Principal BUT WE ALSO HAVE THE INTEREST (to repay)

So what is the interest? We assume is 5% (usually)

So because the question ask about the Principal, we only have to focus on the Principal.

This means that the increase on ONLY THE PRINCIPAL is 20% (25% - 5%interest)

Calculate 20% of the principal (100*0.2 = 20) and then subtract it (100 – 20 = 80)
80 is the Principal/Investment we began with.

- If you want to improve IRR, what different levers can be used?

Here are some possible levers you can use –

 You can increase the amount of debt in the deal. It will increase leverage.
 You can reduce the purchase price that the private equity company has to pay to buy
out.
 You can also increase the company’s EBITDA growth rate to enhance the operating
income / EBITDA

- What is the difference between NPV method and IRR method? Pro & cons of
both?

You are asked to analyze whether this new Project will be Profitable.

In this scenario, you would first analyze the project cost and try to evaluate its cash inflows and
outflows (Free cash flows).
Next, you will check in how many years the cost of the project would be recovered, and by
what period of time that project will start providing the benefits.

In order to measure the Profitability of the project there are 2 different measures: NPV and IRR

NPV: is the present value of the net cash inflows generated by a project less the initial
investment on the project, over the project period of time.

The net present value is calculated using a targeted acceptable discount rate. If the net
present value, after applying the targeted acceptable discount rate, is positive then the
investment is considered desirable.

- Is Expressed in Dollar amount $

- Can be used to evaluate projects where there are change in cashflows

- DOES take into account additional shareholder’s wealth when evaluating the profitability
of the project

- If Discount rate changes, NPV produces different results for the same project

REMEMBER: the higher the discount rate (at which you discount FV of cashflow at Present)
so the lower will be the PV of those Future Cashflow. If their value is too low there is the risk
that when you calculate NPV (-Initial Investment + SUM of PV) you can obtain a Negative
NPV (Project is not profitable).

EXAMPLE: if we have Initial Investment of (-20,000) and discount rate of (10%) after have
done the calculation we will obtain a NPV = 3549

INTERPRETATION

If NPV positive = Project is profitable

If NPV negative = Project is NOT profitable

Table 1

IRR: is the interest/discount rate at which the net present value of all the cash flows (both
positive and negative) from a project/investment is equal to zero. If the internal rate of return
% is higher than the required rate of return %, then the investment is profitable

It is simply a rate of growth over a specified period of time. You can have a monthly IRR, an
annual IRR, a 7 day IRR, etc. What that's telling you is how fast your money are growing in that
specified period of time. For example, if you have a 4% monthly IRR, that just means your
money is growing at 4% per month (which would be roughly a 60% annual IRR).

-Is Expressed as percentage % of growth

-Can’t be used to evaluate projects where there are change in cashflows

- DOESN’T take into account additional shareholder’s wealth when evaluating the
profitability of the project
- If Discount rate changes, IRR produces SAME RESULTS

EXAMPLE: following the previous example (Table 1), if we have Initial Investment of (-20,000)
and discount rate of 10%) after have done the calculation we will obtain a NPV = 3549

Now, if we would like to know the IRR of this project, we should know that IRR is the
Discount Rate at which we will discount FV of Cashflow at Present and after have done the
NPV Formula (-Initial Investment + SUM (PV of Cashflow) we will obtain zero.

In the table here below, the discount rate at which NPV = 0 is 19%, therefore IRR = 19%

Method to calculate IRR: Either use the XIRR formula in Excel or keep on changing the value
of discount rate until you get NPV as zero (do some attempts).

INTERPRETATION

If IRR > Required Rate of Return (RRR) = Project is profitable

If IRR < Required Rate of Return (RRR) = Project is NOT profitable

Make sense right? If this Project IRR is better than another project IRR (Opportunity cost)
than I stick with it; If that wouldn’t be the case, then I’d leave this project

(RRR= % of Minimum return an investor is expecting to receive from the Investment)

REMEMBER: RRR ≠ WACC

WACC: % of every 1$Dollar amount that the company pays back to the LENDER for every
1$Dollar borrowed from then (Bank if Debt, Investors if Equity).

https://www.wallstreetmojo.com/npv-vs-irr/

What is the difference between MoM (Cash-on-cash ratio or ROIC) and IRR?

MoM/CoC multiple: is a ratio that tells you the magnitude of the growth from start to finish of
an investment. It is simpler to calculate than IRR (e.g., $200 / $100 = 2x multiple) So if you
invested $100 and sold out for $200 five years later, your "cash on cash" return would be 2x.
Basically it's a quick way to determine if you've doubled your money (2x), tripled your
money, (3x), etc.

Cons: MoM/CoC/ROIC multiple doesn’t take into account the Time Value of Money:
doubling your money in 1 year is very different than doubling your money in 10, and cash
on cash doesn't account for this difference.

IRR: IRR is simply a rate of growth over a specified period of time. You can have a monthly IRR,
an annual IRR, a 7 day IRR, etc. What that's telling you is how fast your money are growing in
that specified period of time. For example, if you have a 4% monthly IRR, that just means your
money is growing at 4% per month (which would be roughly a 60% annual IRR).

Cons: What IRR does not tell you, is the magnitude of your growth. You may think a 100% IRR
project is better than a 10% project, but if the 100% IRR is on a $1 investment and the 10% IRR
is on a $100 investment that's of course not the case.

(10% IRR of $100 project > 100% IRR of $1 project)

Thus most investment firms will look at both IRR and "cash on cash" metrics when
evaluating a return profile. This gives them an idea of how fast the money is growing and
the magnitude.

IRR factors in the time value of money – it’s the effective, compounded interest rate on an
investment.

Venture Capital firms prefer MoM/CoC: most venture capital (VC) firms and early-stage
investors want to earn a multiple of their money back – they don’t care that much about IRR,
because they’re going to be invested for a VERY LONG time and it’s not exactly liquid… and they
don’t care what the stock market does.

VC firms must be able to cover their losses with “the winners”! If they get 2x their capital back
in 1 year (100% IRR) and then lose everything on another investment in 5 years’ time (0% IRR),
the first result is completely irrelevant because they’ve only earned back 1x their capital.

Perfect Example: Harmonix, maker of Guitar Hero – got VC investment in the mid-1990’s,
generated $0 in revenue for 5+ years, and then in 2005 released the hit video game Guitar
Hero. Sold for $175 million to Viacom in 2006!

Massive multiple, but likely a pathetic IRR since it took 10+ years to get there

LBO Firms prefer IRR: Later-stage investors and private equity firms care more about IRR
because the multiples will never be that high in late-stage deals, and because they are
benchmarked against the public markets (e.g., the S&P 500) more.

If the firm’s IRR can’t beat the stock market, why should you invest?

Most PE firms target at least a 20-25% IRR depending on the economy, deal environment,
valuations, etc… less when things are bad, more in frothy times.

This makes it common to do “quick flip” deals where the company is bought and then sold at a
MUCH higher multiple right after – simply to get a high IRR.

Real-Life Example: Thoma Bravo (mid-market tech PE firm) bought Digital Insight from Intuit for
$1.025 billion, and then sold it 4 months later for $1.65 billion to NCR.

VERY high IRR – 316%! But only a ~1.6x money multiple, assuming no debt / no debt
repayment.

- Would you ever invest in an airline?

No because:

1. From a statistical point of view, US domestic airlines have reported negative net income in 23
out of 31 years since deregulation. However, passenger airlines have made some consistent
growth over the years, around 4.9% per year in terms of aircraft and 3.6% in terms of aircraft-
seats. But even all of this, it is a noy very profitable industry
2. Airline Industry is A CYCLICAL INDUSTRY, therefore its cashflows are not stable and consistent
because the fluctuation given by this cyclicality (there will be less customers buying ticket (less
sales) in the Winter season rather than in Summer season, this affect the Cashflow)

https://www.investopedia.com/articles/00/082800.asp#:~:text=Cyclical%20stocks
%20represent%20companies%20that,clothing%20retailers%2C%20and%20automobile
%20manufacturers.

- What is the rule of 72?

IMPORTANT!: The Rule of 72 applies to cases of compound interest, and not to the cases of
simple interest. Also, a compound annual return of 8% is plugged into the equation as 8, and
not 0.08

The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years
required to double the invested money at a given annual rate of return (interest rate).

It comes in handy for mental/fast calculations to quickly gauge an approximate value.

The Rule of 72 applies to compounded interest rates and is reasonably accurate for interest
rates that fall in the range of 6% and 10%.

72
Years ¿ Double=
Interest rate

Where: interest rate = rate of return on an Investment

The rule of 72 can be applied to 2 different purposes:

1. To anything that grows at a compound rate

(the return required on an investment or the GDP of a Growing economy country etc.)

EXAMPLE:
 if an investment scheme promises an 8% annual compounded rate of return, to
double the invested money you will need 9 years. → (72 / 8 = 9)

 If the GDP of a country grows at 4% annually, then the economy will be

expected to double in 18 years. → (72 / 4 = 18)

2. to demonstrate the long-term effects of costs like fees on investment gains or inflation
(eroding money that are not invested)
 (a person or Mutual Fund that incur in 3% annual expense fees or a borrower of loan or
just inflation erosion of bank deposit)

EXAMPLE:
 A Mutual Fund that incurr in 3% annual expense fees will reduce
the investment principal in half within 24 years. → (72 / 3 = 24)
 A Borrower who pays 12% interest on a loan or credit card will double the
amount of money he owes to the bank in 6 years. → (72 / 12 = 6)
 In how much time will Jim’s money halved by the given 6% inflation rate?
(assuming they are deposited in a bank account and not invested) Given 6%
inflation rate, Jim’s purchasing power (its money) will be halved within 12 years.
→ (72 / 6 = 12)

IN A LBO CASE, IF WE END UP HAVING A 2x MoM/ROIC multiple, WE CAN REVERSE THE

FORMULA OF THE RULE OF 72 IN ORDER TO FIND IRR!

BUT REMEMBER: ONLY IF WE HAVE A 2x MoM/ROIC multiple

72
Years ¿ Double=
Interest rate

72
Given a 2x MoM/ROIC multiple, what is IRR? IRR=
Years

This is because having a 2x MoM/ROIC multiple is the same as saying “Double money in 2
years”

- What is the rule of 73? Difference with the rule of 72?

The Rule of 72 primarily works with interest rates or rates of return that fall in the range of 6%
and 10%.
When dealing with rates outside this range, the rule can be adjusted by adding or subtracting 1
from 72 for every 3 points the interest rate diverges from the 8% threshold.

EXAMPLE:

 Given the rate of 11% annual compounding interest, we know that the diverge from
the 8% threshold is 3 (11- 8 = 3) right? So, because every 3 points of divergence we add
1 to the rule of 72, we will now have 73 in the formula. → 73 / 11 = 7 years
 An investment has an attractive annual rate of return of 22%;
Here we can’t use the rule of 72 because the 22% rate IT IS NOT WITHIN THE RANGE
6% - 10%.
Since it is higher we will have to apply the rule for which: 22% - 8% = 14%
14 / 3 = 4.67 ≈ 5 (from 8% threshold to 22% there are 5 times 3 points of distance)

Hence: we have to add 5 points to the rule of 72:

72 + 5 = 77

77 / 22 = 3.5

The Initial Investment will double the invested money in 3.5 years. → (77 / 22 = 3.5)

https://www.investopedia.com/terms/r/ruleof72.asp

- How many ways/method there are of IRR estimation? What are? (Given the
MoM/ROIC multiple)

There are 3 ways for estimate the IRR:

 IRR formula estimation:

2x in (N)Years = 100 / N * 75%
3x in (N)Years = 200 / N * 65%
4x in (N)Years = 300 / N * 55%

EXAMPLE: 2X in 3 Years = 100 / 3 * 75% = 25% IRR

 IRR formula:
 1
IRR=(MoM ) −1 n where n = period or Year

EXAMPLE: IRR = ¿

 Rule of 72 (INVERSE!)

If you know How many years you are holding the company until exit (Nr of Years)
you can just do the Rule of 72 inversed:

72
IRR =
nr Years

72
EXAMPLE: = 24% ≈ 25% IRR
3

OTHER TECHNICAL QUESTIONS:

https://www.wallstreetprep.com/knowledge/25-private-equity-interview-questions-you-must-
know/

TECHNICAL Q&A VIDEO

https://www.youtube.com/watch?v=8BgVtn7Lo9U&ab_channel=Mergers%26Inquisitions
%2FBreakingIntoWallStreet
LBO CASE STUDIES:

TYPE 1: PAPER LBO (less than 15 min)

https://www.youtube.com/watch?v=mIH-3bgocTQ&ab_channel=PeakFrameworks (on Paper)

https://www.youtube.com/watch?
v=8VULm4T1jFI&list=PL5hdd9oiuWS9Ygzy0b7_qCkefSMcyxvku&index=3&t=420s&ab_channel=
Mergers%26Inquisitions%2FBreakingIntoWallStreet (on Excel)

TYPE 2: 60-90 min LBO

https://www.youtube.com/watch?v=AX7qJg9k6CM&t=145s&ab_channel=Mergers
%26Inquisitions%2FBreakingIntoWallStreet

TYPE 3: 2-3 Hours LBO

Like 60 min LBO but in addition:

- Balance sheet Projections

- Pro Forma Balance sheet
- 3 Statement Model

TYPE 4: “Take Home” LBO

https://www.youtube.com/watch?v=znTj4bwIsR0&ab_channel=Mergers%26Inquisitions
%2FBreakingIntoWallStreet

3 STATEMENT MODEL

https://www.youtube.com/watch?v=mIH-3bgocTQ&ab_channel=PeakFrameworks
6-BRAIN TEASERS Q&A

Brainteasers are like standardized tests: of little relevance to the actual subject but designed to
compare all people equally. As for what these tricky interview questions entail, they typically
encompass probability and/or statistics. Both hedge funds and private equity firms use brainteasers
during the interview process. But hedge funds use them more often because these questions test
mental math skills, which are perhaps more important for hedge fund jobs than PE positions.

Accuracy, of course, is key to answering brainteasers. But so is your thinking process. You should
expect to explain your reasoning; a logical verbal breakout followed by a wrong answer is better
than just a plain wrong answer. Don’t forget: Pay attention to your interviewer’s face for clues as to
whether you're going in the right or wrong direction. And, since brainteasers are meant to be tough,
it’s fine to take a minute to collect your thoughts and outline the steps toward calculating your
answer.
No matter what exactly is asked, by design there are no right, exact answers to questions like these.
That’s because the point of these types of questions isn't getting the correct answers; it’s your
thought process that matters.

Do you stay calm? Or are you totally thrown you off and start to get nervous? Do you attempt to
answer the question and think it through? Or do you simply say “I don’t know” and move on? Does
your answer show critical thinking?

How you react to these questions can be a good indication of how you’d react to something
unexpected in your role. So, when answering, the most important thing to remember is to keep your
cool. Don’t let the question throw you off, and definitely don’t react negatively to it. Your reaction
should let your interviewer know that you’re game for anything.

Next, it’s time to work out an answer. Remember that your answer is supposed to highlight your
critical thinking ability. Break the question down into its components and think through them aloud
to "show your work." Don't forget that the answer your interviewer is looking for is not the actual
answer but a sensible way of getting to the answer.

 STAY CALM: If you’re visibly shaken when presented with a guesstimate, it’ll hurt your
candidacy, “That’s an intriguing question. Can I have a moment to think it through?” This
statement immediately shows your interviewer that you’re still in control and gives you
some breathing time to think about a method for answering.
 THINK OUTLOUD: you want showcase your ability to analyze a situation and form
conclusions by thinking out loud. So, Once you’ve had a minute to compose your thoughts,
be sure to talk through your reasoning, allowing your interviewer to see (and hear) that
you're arriving at your answer in a logical manner.
 ROUND UP and ESTIMATE: remember that you choose the numbers, so pick nice round
numbers that are easy to manipulate. You should realize that, for the purposes of a
guesstimate, 1,000,553 is the same as 1 million, and you can divide by 350, instead of 365, if
you need to divide by the number of days in the year. The logic that you use to derive an
answer from your assumptions is much more important than the perfect accuracy of the
assumptions themselves.
 THINK OF A FUNNEL: Use the funnel method so you begin by thinking broadly, then
slowly narrowing down towards an answer. So, first, you have to locate the tip of the funnel
(punta dell’imbuto). In the ping-pong ball question, when you’re looking for how many balls
fit in a 747 airplane, your starting point is this: the volume of a ping-pong ball.
 ASK QUESTIONS or MAKE ASSUMPTIONS: if assumptions are fairly easy to make, then
don’t ask your interviewer questions. If assumptions are difficult to make, or you run into
difficulty assuming anything, then questions are okay to pose. For the ping-pong teaser,
don’t ask “what is the volume of the ping pong ball” because it is easy to calculate (3 square
 inches) and asking it to the interviewer could be counterproductive. Instead, start your
assumption by saying: “Let's assume that the volume of a ping-pong ball is about three cubic
inches”.
 DON’T BE AFRAID TO ASK PEN and PAPER: you are not a human calculator
 PUT EVERYTHING TOGETHER: see the PING-PONG Brain Teaser Below

That said, here are some example questions (along with their answers) to give you an idea of what to
expect if you’re interviewing with a PE firm or hedge fund.
don’t panic

PROBABILITY & STATISTICS Brain teasers

- What is the probability of drawing two sevens in a card deck?

You can multiply the individual probabilities to get the cumulative probability. There are four 7s in a
deck of 52 cards. Therefore, the probability of drawing the first 7 is 4/52 or 1/13. On the second
draw, there are only three 7s in a deck of 51 cards, yielding a probability of 3/51 or 1/17. So 1/13
multiplied by 1/17 equals a cumulative probability of 1/221. (Don’t expect to be able to use paper or
a calculator for 13 times 17. You can just simplify the math in your head by saying 17 times 10 is 170,
plus 3 times 17 which is 51, and yields 221.)

-You play a game of dice where you are paid the equivalent amount of dollars to
the number you roll (i.e., if a 4 is rolled then you get $4). You roll one fair six-sided
die. How much are you willing to pay for this roll?
The expected return is every possibility multiplied by the probability of the possibility. The average of
all the potential die rolls, which each have equal probabilities, is $3.50, the midpoint between 1 and
6.

Follow Up:
3. How much would you pay to play the same game, but with the option to roll
again? If you only roll once you get that score; if you choose to roll again, you
get the score of the second roll.
 Intuitively, you know the price should be higher since you’re given the option to
roll again if you’re dissatisfied with your first roll. You should only roll a second
time if the first roll is less than 3.5, the expected value. Thus, you have the
following six scenarios: rolling 4, 5, 6 and stopping, or rolling 1, 2, 3, and rolling
again. Again, the expected roll is 3.5, so the latter three outcomes have expected
returns of 3.5. Therefore, a game of two rolls’ expected return is (4 + 5 + 6 + 3.5 +
3.5 + 3.5)/6 = $4.25.

4. Again, same games, option for a third roll now. How much will you pay?
Follow the same logic as before; two rolls have an expected return of 4.25 so you
will only roll a third time if you get above that. You have an expected return of
(4.25 + 4.25 + 4.25 + 4.25 + 5 + 6)/6 = $4.67. As the number of rolls approaches
infinity, the price you pay gets closer to $6.00.

- You have stacks of quarters, dimes, nickels, and pennies. The number of coins in
the stacks is irrelevant. You can take coins from a stack in any amount, any order,
and place them in your hand. What is the greatest dollar value in coins you can
have in your hands without being able to make change for a dollar with the coins in
your hand?
Start adding the highest coin to your hand, the quarter. Four quarters make a dollar, so you
can only have three quarters: $0.75. Five dimes would bring it to a dollar, so you can only
have four dimes: $1.15 = 0.75 + .40. You can’t add a nickel because three quarters, two
dimes, and the additional nickel would create a dollar. But you can add four pennies for a
maximum total of $1.19 = 1.15 + .04.

- A closet has three light bulbs inside. Next to the door (outside) are three switches
for each light bulb. If you can only enter the closet one time, how do you determine
which switch controls which light bulb?
Turn on two switches, A and B, and leave them on for a few minutes. Then turn off switch
B and enter the room. The bulb that is lit is controlled by switch A. Touch the other two
bulbs, which are off. The one that is still warm is controlled by switch B. The third bulb,
off and cold, is controlled by switch C.

- What is the square root of 7,000,000 (approximately)?

You know that 2 * 2 = 4 and that 3 * 3 = 9, and that 1,000 * 1,000 = 1,000,000 so the
answer has to be between 2,000 and 3,000. Edge closer in, 2.5 * 2.5 = 6.25 and 2.7 * 2.7 =
7.29 so the answer is approximately 2,600.

- You are given a length of rope, which can be lit to burn for an hour. However, the
rope burns unevenly (meaning half of it burnt does not indicate a half-hour has
passed). How would you burn the rope to know that a half-hour has passed?
To measure a half-hour, burn both ends at once. One side will burn faster than the other,
but the opposite side will burn slower such that when they meet, the equivalent of half the
time has passed.
Follow Up:
5. If you were given two ropes, how would you measure 45 minutes?
For two ropes, take one rope and burn both ends like the previous situation. At the
same time, light the second rope on only one end. When the first rope burns out, a
half hour has passed. The second rope only has 30 more minutes on it. Immediately
burn the opposite end of the second rope. The fire will meet at both ends again,
which is fifteen minutes.

-You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of

the larger cube is completely painted. On how many of the smaller cubes is there
any paint?
First, note that the larger cube is made up of 1000 smaller cubes. Think about how many
cubes are NOT painted. 8 x 8 x 8 inner cubes are not painted which equals 512 cubes.
Therefore, 1,000 - 512 = 488 cubes that have some paint.
-If every day you come at workplace by car, the probability to find a free parking
spot is 10%, What is the probability that you will find a free parking spot for
your car tomorrow?
The probability is still 10% because it resets with the beginning of every new day (new
universe)

-When an analog clock reads 3:15, what’s the angle (in degrees) between the
hour hand and the minute hand?

On an analog clock, 3:15 means that the hour hand is pointing just past the 3. Since the hour
hand moves 360° in 12 hours, that is 30° in one hour, or 7.5° in 15 minutes.

HOUR HAND:

360 degrees / 12h = 30 degrees (hour hand moves of 30 degrees in 1h)

30 degrees / 4 = 15 minutes (of an hour)

30 degress / 4 = 7.5 degrees ( movement of the HOUR HAND)

(REMEMBER: if the MINUTE HAND has moved already and it is positioned on 15 minutes, which
is 3 on the analog clock, then it means that ALSO the HOUR HAND has moved a little, in this
case it’s been calculated to be 7.5 degrees)

-Why are manhole (tombini) covers round (shaped)? Why aren’t they squared?
1. It would make it harder to fit with a cover. You'd have to rotate the cover exactly the right way.
Therefore, many manhole covers are round so they don't need to be rotated.
2. Safer because there are no corners to deal with;
3. Safer because a round manhole cover won't fall into a hole because it was rotated the wrong way.
Example: a Pot (pentola) Cover is round and the pot is round shaped as well. Because both are round
shaped, the pot cover wouldn’t fall into the pot.
4. And because it's round, it can be more easily transported.

GUESSTIMATES (Guess & Estimate) Brain teasers

-How many United Airlines Planes will take off in the next hour in the U.S?

 Try to estimate the number of large U.S. airports that would have United Airlines planes. For
ease, if you estimate that each U.S. state has two big airports, then you come up with 100
airports.
50 states * 2 airports each

 Estimate how many United Airlines planes take off every hour. If you think that maybe one
United Airlines plane departs every 15 minutes at each airport, you can see that four take off
per hour from each airport.
15 minutes * 4 = 60 minutes ( or 1 Hour) → so 4 planes take off every 1h from one airport

 This means you can estimate that there are 400 (100 x 4) United Airlines planes taking off
each hour in the U.S.
4 planes take off every 1h from 1 airport * 100 Airports = 400 flights take off per hour in U.S

-How many ping-pong balls fit in a Boeing 747?

1 foot = 30 cm
1 Inch = 2.5 cm
1 foot = 12 inches 30 cm = (2.5 cm *12)
IMPORTANT: To calculate cubic you always have to multiplied by the three dimensions 2 x 2 x 2.
Remember? Volume = Base x Area x Height
↓ ↓ ↓ ↓
Cm3 = 2 x 2 x 2
Step 1: FIND AVERAGE PERSON VOLUME
Let’s Assume that:
6. All the seats in the plane are removed
7. The average person is 6 feet height, 1 foot wide and 1 foot deep = 6 cubic feet
8. If 1 foot = 12 inches, then 1 cubic foot = 1,728 cubic inches (you find it doing 12*12*12), so
So, 6 cubic feet = 10,368 cubic inches (you find it doing 1,728 * 6) and this is the volume of 1
average person
Step 2: FIND PLANE 747 Extra Spaces Volume: Kitchens, Bathrooms and Aisles
HOW? You do it by converting these spaces volume into their equivalent volume in Persons
WE DO NOT INCLUDE THE COCKPIT
Let’s Assume that:
 There are in Total 425 seats: 400 on the Lower deck and 25 on the Top deck
 There are 3 kitchens, 14 bathrooms and 3 aisles (corridoi). Aisles are 2 in the Lower deck and
1 in the Top deck
 1 Kitchen volume = 6 Persons equivalent 3 Kitchen * 6 = 18 Persons volume
 1 Bathroom volume = 2 Persons equivalent 14 Bathroom * 2 = 28 Person volume
 2x Aisles Lower deck volume = 100 Persons equivalent (50p each)
 1x Aisles Top deck volume = 20 Persons equivalent
Total Extra Persons Equivalent (Kitchen, Bathroom, Decks) = 18 + 28 + 120 = 166 Persons
Plane Total seats/person = 425
Total Extra Persons (in equivalent respect extra space Kitch,Bath;Decks) = 166
Total Persosn calculated so far = 425 + 166 = 591 Persosn → (let’s approximate) → 600 Persons

Step 3: FIND PLANE 747 Extras Spaces Volume: Cargo space, Over-head luggage compartments and
over-head passenger space
Let’s Assume that:
9. This extra space is equivalent to 4 times the Plane persons available calculated so far (600)

600 * 4 = 2,400 Persons Volume equivalent

Recap:
Total Plane persons = 600 (Tot. Persons calculated so far) + 2,400 (Tot. Cargo, Over-head etc.) =
= 3000 Total Plane persons
Total Planes Volume in inches = Tot Persons (and Persons equivalent of spaces) * 1 Person Volume
3000 * 10,368 = 31,104,000 cubic inches of space
Let’s Assume:
10. Ping-Pong ball Volume = 3 cubic inches

So, How many Ping-Pong balls could fit in a 747 Plane?

31,104,000 cubic inches of space / 3 cubic inches = 10,368,000 (Ping-Pong ball that could fit in)

However, spheres don’t fit perfectly together. So if we eliminate a certain percentage—let’s assume
spheres cover only about 70 percent of a cube when packed—we cut the answer by 30 percent and
get a grand total of 7,257,600 balls.
30% it’s almost 1/3 of the total so you basically subtract 1/3 by that number (3,300,000) = 7,000,000
aprox.
(REMEMBER: you won’t be able to use any calculator but only mental math)

-How many gallons of white house paint are sold in U.S every year?
Start with the basic assumption that there are 320 million people in the U.S. (or 30 million
businesses, depending on the question). If there are 320 million people in the United States, perhaps
half of them live in houses (or 160 million people). We know that the average family size is about
three people at 2.6, which means there are roughly 60 million houses in the United States. For ease
of calculations, let's ignore second houses and houses used for purposes besides residential. So there
are about 60 million houses.

If houses are painted every 10 years, on average (notice how we deftly make that number easy to
work with), then there are six million houses painted every year. Assuming that one gallon of paint
covers 100 square feet of wall, and that the average house has 2,000 square feet of wall to cover,
then each house needs 20 gallons of paint. So 120 million gallons of paint are sold per year (six
million houses x 20 gallons). (Note: If you want to be fancy, you can ask your interviewer whether
you should include inner walls as well. You may also want to mention that you are assuming that one
coat of paint will suffice and that spillage is negligible.) If 80 percent of all houses are white, then 96
million gallons of white house paint are sold each year.
7-FINAL PART OF THE INTERVIEW

So, Do you have any questions for me?

In interviews, hiring managers and recruiters will inevitably ask, “So, do you have any questions for
me?” And when they do, you better have at least a few questions prepared to ask. As for which
questions you should ask, below are six great ones, all of which will show that you’ve prepared for
your interview and are very interested in the job you’re interviewing for.

There are many questions that would be appropriate to ask at the end of an interview. Your goal is
to show your interest while increasing your understanding of the organization and role. Some
questions will more closely hit those goals than others.

YOU SHOULD ALWAYS ASK AT LEAST 2 QUESTIONS; ALWAYS

Why? the worst response is not asking any questions at all. You risk coming across as uninterested
in the position, or lazy for not having prepared questions in advance. Ideally, the interview should be
a two-way street, in which both you and your interviewer have the opportunity to ask questions and
evaluate whether this role is a strong fit for you.

Questions that are open-ended

Open-ended questions increase the amount someone shares in response. Questions that start with
“do” yield shorter responses than questions that begin with “what/how/when.” If you ask the
interviewer, “Does the organization encourage team building by hosting social events?” you could
very well receive a response of “Yes” or “No.” Instead, lead with “What does the organization do to
build teams?” and you’ll get far more insights. Here are some other examples:

 What are my next steps in the process?

 What is the broader decision-making timeline, and when do you think I’ll hear about my opportunities
to move forward?
 Which skills or attitudes cause people to quickly advance in the organization?
 How do people describe the department or team I would be working with?

Questions about the interviewer’s experience at the employer

Each person will bring a slightly different perspective to a topic based on their experience. Lean into
that diversity of thought by asking interviewers questions about their personal experience. You’ll
benefit from the additional data point on a subject, and the interviewer won’t feel the pressure of
speaking on behalf of the entire organization. Another benefit of asking for the interviewer’s
perspective is that it ends the interaction on a relational note rather than a purely transactional
question. Seemingly small adjustments like those will differentiate you from the other qualified
candidates. The more likable and 90 percent qualified candidate wins every time versus a 100
percent qualified but less likable candidate. Ask about the interviewer’s perspective and build
likability by asking questions similar to the following:

 What trends do you think will have the biggest impact on the organization in the next five years?
 From your perspective, what type of person is a great fit for the organization?
 What’s one of your favorite parts about working at the organization?
 What’s a project you think could positively impact the organization?
 How would you describe the organization’s leadership?

Questions that build on information you’ve already gathered

Asking follow-up questions to what you’ve already learned is an outstanding way to show your
diligence and interest in the organization. Starting your question with “I know from reading the
company website…” or “In my conversations with Jane I learned that …” are excellent ways to begin
an end-of-interview question. From there, you choose the topics and ask interviewers for their
perspective. You might say something like, “I know from reading the company website that the
organization was just recognized as one of the best places to work in Dallas. I read the linked
business magazine article connected to the award and saw employees mentioned opportunities for
professional development as one of the reasons the organization is a great place to work. What
would you say are some the professional development opportunities that employees seem to find
the most beneficial?”

Other Types of questions

1. Ideally, what are you looking for someone in this role to achieve in the first three months of work?

If you haven't been asked this question during an interview, it's a good time to ask it now. Asking this
question will show that you’re eager to get started without delay. No one wants candidates to spend
weeks or months "getting to know the organizational structure better." They want to see an
employee that prefers to learn on the fly—and make an impact immediately. Also, the answer to this
question will show you what the role will entail, thus showing you if it’s the right role for you.
2. What are three qualities that your best employees possess?

Good candidates want to be good employees. They know that all companies are different and
require different qualities to be successful. Maybe this company wants employees to work late.
Maybe it values creativity over being able to follow protocol clearly. Maybe it’s looking to conquer
new markets, so attracting new customers is more important than maintaining long-term
relationships with old ones. Good candidates need to know what companies want from a candidate.
They want to be know what it takes to succeed at the new workplace.

3. What does the performance of the position depend on?

HR specialists need to find the right people to fill open positions thereby minimizing turnover rates,
reducing the cost of training new employees, and increasing overall productivity. As a good
candidate, you need to know what qualities will allow you to contribute the most to the overall
business—the success of the entire company depends on your (and other employees’) personal
success and performance.

4. What percentage of your employees were hired by internal recommendation?

Employees who love their jobs typically recommend their employers to their friends and
acquaintances. The same goes for supervisors—they make sure to bring in those with whom they've
worked before; it took them a long time to prove their competence and build a relationship based
on trust, so people instinctively follow them. And so, this question will help you better understand
the quality of the work environment and the team atmosphere. If a lot of people were hired by
recommendation, you’ve likely found a great environment.

5. Ask a question about something specific you’re interested in knowing that you didn’t (yet) find out
during your interview.

If you’re interested in some specifics of the role that you didn’t grasp during your interview, don’t be
afraid to ask about it. Examples of these types of questions to ask include:

 Could you be more specific about the day-to-day responsibilities?

 Will there be any training needed before I start working?
 What are the specifics of the probationary period for this position?
 Does the company provide additional professional development training for its
employees?
 Could you describe in general the working atmosphere in the company?
 Can you tell me about the team in general?
 Who would I work for and with which other departments?

6. Is there anything else you need from me or that I can provide?

This question is almost a must-ask. It shows that you’re willing to provide whatever information is
necessary, and thus it shows that you’re extremely interested in the position. It’s the perfect
question to end you’re interview with.

7. How is the company’s Culture?

Referencing the "company culture" is a wonderful way to get insight into the energy
underlining the work environment. It’ll also show that you’re interested in a deeper way of
aligning with the job beyond just the role requirements.

8. What do you like most about your place in this company?

Asking hiring managers something a little more personal like “What do you like most about your
place in this company?” is a nice way to get information about how they enjoy their role. It's a
refreshing question that will make your interviewer feel like you’re interested in their
perspective.

8. How did you get started in your role?

This question allows you to connect with your interviewer on a personal level and demonstrate your
interest in his or her individual experience at the company. It directs attention away from you to
your interviewer, which is a strategic way to end your interview, as most people love talking about
themselves. By asking this question, you can gain insight into why the interviewer chose this firm
over others, which will be valuable to you later if you face a similar decision. You can also learn about
the interviewer’s growth path within the company, which may inform you as to the typical trajectory
for internal mobility at the firm.

9. Can you tell me more about the day-to-day responsibilities for this job?

You have already read the job description and determined this role to be a good fit, but job
descriptions often define the duties of a role in generalized, vague terms. Before you accept a job, it
is crucial for you to learn what your actual day would look like in the role. You’ll want to learn about
the specific types of projects you’ll be working on, if you’ll be making calls all day, and if you’ll spend
the majority of your time in meetings or alone at your desk. These are important factors that could
make or break your decision to accept a job.

QUESTIONS TO ASK REGARD PRIVATE EQUITY IN SPECIFIC

1. Roughly, how many people do you hire each year? What’s the Turnover like here?

This question gives you a sense of the rarity of openings, as well as how long people stay at
the company. The demand for good private equity employees is strong, and anybody with
 private equity experience can go elsewhere for more money, so don’t get too alarmed if
turnover seems a little higher than you might expect. That said, low turnover is a very good
sign—people are making plenty of money, and the work keeps them interested and fulfilled.

2. How do you deal with the issue of employees retention?

this is the sneaky way of asking about pay and benefits without actually asking. You’re likely
to start a conversation about “aligning the interests of the company and employee” through
various bonus programs and the like. You may also get a sense of the company’s culture,
especially if they actually bring up things like work environment, corporate values, and
work/life balance. Be wary of the interviewer who says he or she isn’t worried; every firm on
Wall Street should be. There’s plenty of demand for top talent throughout finance, and
private equity firms are still up against tough competition from hedge funds, on the riskier
side, and from more traditional Wall Street firms that may now be more averse to risk. You
want to hear reassurance that this is a top priority for the firm.

3. How much do you plan to take advantage of the recent interest in private equity investing to
grow the business?

Knowing the current mindset of private equity fund investors and the ebb and flow of the
business is important, and this question shows you have some interest in that. This will also
give you a sense of the strength of the company’s business and its future plans for
expansion.

4. In your acquisition of company X, you opted for exit strategy A instead of exit strategy B.
Why is that?

Asking smart questions about recent or historical acquisitions is always a nice way to show
off your research and intelligence; it also gives you a better sense of the company’s investing
philosophy. That said, the key word here is smart. If you’re going to ask about any deals,
know them cold, and ask specific questions. “Were you happy with the way Deal Y turned
out?” is not going to make you look good, and the interviewer is going to sit back and say,
“Well, sure.” But if you can ask a smart question about the financing structure of Deal Y, that
will get your interviewer talking. And that, of course, is a very good thing.

WHAT IF YOU REALLY DON’T HAVE ANY ADDITIONAL QUESTION? (Not

recommended)
On occasion, most or all of your planned questions will get answered throughout the interview. The
next steps in the process might even be covered. If that happens, and you don’t have the
brainpower to think of new questions in the moment, you want to give an answer that conveys your
sincere interest in the role. That’s easily done by briefly noting you took initiative to find the answers
to many of your questions before the interview:

“Thanks. You answered the questions I planned, and I don’t have any additional questions at this
time. I feel my conversations with X and Y, as well as our interactions today, have given me enough
information to know that Z is somewhere I could see myself thriving. Thanks for your time. It’s been
a pleasure talking with you.”

- Questions NEVER to ask

Questions interviews about race, ethnicity etc.

There are a variety of topics that interviewers shouldn’t ask you about during an interview. Any
question to determine your religion, family situation, sexual orientation, and citizenship are all illegal
for interviewers to ask in the U.S. Although it might not be illegal for you to ask interviewers
questions about those topics, it’s certainly inappropriate and won’t bode well for your candidacy.

Questions about salary and other benefits

Asking about salary and benefits during your interview can set the wrong tone. You’re being
interviewed to assess your skills and how your personality would fit into the culture of the
organization and work team. Asking about salary when your interviewer is assessing your personality
could easily cause them to see you as someone less interested in the organization and more
interested in making money for personal gain. That could cause them to see you as someone who’d
take another offer or leave their organization the moment more money was offered

Hold off on salary and benefit questions until you receive an offer.

Questions you should know the answers to before entering the interview room
Hiring new employees is costly. A large part of the cost is the time required to interview candidates.
So organizations take many measures to cut the time of the hiring process. So don’t ask questions
that don’t use interviewers’ time well. Specifically, don’t ask questions that were covered during
other interactions with the employer

This could risks of showing yourself to be fairly inconsiderate and lacking diligence.

Also, don’t ask questions about information that can easily be found online. Instead, pull out your
phone after the interview and type your questions into your preferred search engine. Avoiding
questions that can be answered through an online search will show that you’re someone who’s
skilled at leveraging technology to be efficient

Questions regards content already covered in the interview

The first rule is to never ask anything that was already covered in your interview. Carefully
listen the entire way through your interview, because if you ask something already expressed,
it’ll seem like you weren’t listening. If you need something explained further, then ask: “I’d like
to revisit this point … can you elaborate on this for me?”

Questions about work flexibility (Can I work from home? What are the hours?)

Never ask questions about flexibility with respect to leaving early, arriving late, or working from
home. Again, this seems unprofessional and can express disinterest on your part.

Questions about employee promotion, review and benefits

Don’t ask about employee reviews, promotions, and benefits. Doing so can seem like you’re
more focused on where this will get you in the future, rather than starting from where you’re
starting

Who are your main competitor?

Knowledge of competition is fundamental to understanding a business, but you should already know
the answer to this question from doing your company research in preparation for your interview. If
you’re interested in addressing the topic of competition, try asking a question such as, “What
differentiates your company’s business model from that of your competitors X and Y?” Be sure to
reference the competitor companies by name and understand their core businesses, to demonstrate
not only that you understand the industry but also that you’ve dedicated time to preparing for this
interview.

What is the dress code?

While this is definitely a question you need answered if you end up accepting a job, you should wait
to ask it until after you have received an offer. Inquiring about the dress code in an interview might
insinuate that you care more about your fashion choices than learning about the position and
company.
How many paid vacations and sick days would I get?

Asking about paid time off implies that you are more concerned with the time you will be away from
your job than the actual job itself, which brings into question your work ethic.

Does the company monitor employee email or Social Media accounts?

Even if you are lucky enough to receive a job offer, you should never ask this of an employer. You
might just be curious, but questioning the surveillance policies of a company makes you seem as if
you have something to hide.

What do you like least about working here?

you should refrain from asking it in an interview. It can give your interviewer the impression that you
tend to focus on negatives, or worse, that you are phishing for him or her to criticize the company. If
you are concerned about the role because you know it will be particularly difficult for some reason,
try framing the question differently such as, “What is the most challenging aspect of your job?”

CLOSE THE INTERVIEW BY SAYING:

“I’D LOVE TO WORK WITH YOU AND I REALLY

ENJOYED MEETING YOU, REGARDLESS OF WHO
YOU DECIDE TO HIRE”

8-AFTER THE INTERVIEW: Send “Thank you” Note

AFTER THE INTERVIEW HAS ENDED, ALWAYS SEND THE THANK-YOU NOTE;
ALWAYS (even when you are rejected)

Do not underestimate the importance of this step. Interviewers see multiple candidates each day,
and thank-you notes are a quick and easy way to distinguish yourself from the competition,
emphasize your interest in the position, and leave the interviewer with a positive lasting impression.
Send thank-you notes via email and/or express mail. When appropriate, sending something tangible
will set you apart from other candidates.

How you send this thank-you note depends on the interviewer; it’s always best to ask interviewers
how they prefer to be contacted. Email is usually best method due to its immediacy; you can send it
from anywhere and interviewers will receive it instantly, keeping you top of mind (and impressing
your interviewers with your timeliness)

TIP: The note itself should be brief, to the point, and professional yet pleasant. Thank interviewers
for their time and restate your interest in the position, reminding them of a few key reasons why
you’d be a great fit for it. If you’re sending your note via email, this is also an appropriate time to
attach any information you discussed, such as an article you recommended or an example of work
you’ve done previously. And don’t forget to send personal notes to each interviewer if you met with
more than person.

NOTE STRUCTURE
4 Parts:

 The personal touch

 The thanks—with context
 The plug
 The send-off

NOTE TEMPLATE

Dear [Interviewer],

It was great to meet you on Tuesday. Thank you so much for taking the time to speak with
me in more detail about the associate editor position—I really appreciated your
perspective on where Vault is going in the future and how the position fits into that
framework. And I was particularly excited about our conversation about expanding the
blog, as I’m interested in gaining more writing experience and learning more about the
career industry. I look forward to speaking further about the position, and hope to hear
from you soon. Have a nice weekend!

All the best,

Alessandro Molinari

9-HOW TO NEGOTIATE YOUR SALARY/RAISE

We’d all like to go on exotic vacations or buy a brand-new Ferrari. Some of us just want to purchase
awesome collectibles that are totally not toys, and watch cartoons all day. The problem is these
things all cost money, and with the cost of living constantly on the rise, we’re going to need way
more cash to keep up with our sweet hobbies. Today, we’re going to show you how to negotiate like
a pro, whether you’re still in the interview process or due for a raise with your current employer.

First, get into the habit of keeping records. Whenever you receive praise for the work you’ve done or
make a measurable impact on your organization’s performance or bottom line, write it down.
Alternatively, create a document in your phone, tablet, or computer. This may seem obsessive, but
the information will be invaluable when you’re asked to prove your worth. You’d be surprised how
difficult it can be to remember your accolades as time goes on with the gentle chaos of life keeping
you in a constant state of flux.

Other things to keep track of in your personal records are any previous performance reviews, your
attendance records, or whether you were promised a raise at some point in the past. If you’ve been
consistently late to work or frequently call in sick, do your best to start coming in on time and being
present before you attempt to ask for a raise.

Next, do your research. Keep tabs on the current salary rates for your job in your area. When asking
for a raise, don’t be afraid to ask for a figure that is on the top end of the spectrum. If you overshoot
and your employer counters, you’ll still likely get a larger raise than you would have if you tried
offering a range. Speaking of ranges – do not, under any circumstances give a range when asking for
a raise. Giving a solid number will show your employer you’ve done your research and are well
informed. The worst-case scenario is you’ll get a “no,” and that’s perfectly fine.

These philosophies can be applied to the interview process in similar ways. Your resume will include
all your various accolades and accomplishments; just make sure you update your resume whenever
there is something worthy of note to add. Research the current salary rate for the job you are
applying for and follow the same line of thought when negotiating your salary as you would when
negotiating a raise.

Whether you’re negotiating for a raise or during your interview, take care to not come off as pushy.
Instead, remain positive, maintain good posture so you exude confidence, and be kind, but firm.
Giving the appearance of confidence, whether you’re super nervous inside or not, will show that
you’ve done your homework and you know your worth, which brings us to the next topic.

When thinking about asking for a raise, you must first determine whether you are deserving of one.
We’ve already covered lateness and taking too much time off, but it takes more than regular
attendance to negotiate a decent raise. In the eyes of your employer, your value is determined by
your ability to complete tasks on time, with accuracy, and in such a way that is beneficial to the
organization’s bottom line, among other factors. If you consistently deliver and go above and
beyond, asking for a raise is more than reasonable.

Likewise, when negotiating your salary during an interview, your value can be determined through
your experience and accomplishments. If you’re new to the workforce or feel you lack the necessary
experience and achievements to ask for a higher salary, you can always revisit the idea during your
review.

Lastly, here are some things to avoid talking about when negotiating your salary or a raise: never
bring up your life circumstances or expenses. Instead, focus only on your value as an employee and
your contributions to the organization. Bringing personal matters into the conversation won’t do you
any favors and at worst, can make you seem frivolous or even greedy.

Think of negotiating as a skill that can be built over time, just like interviewing. The more you do it
the more confidence you will have, and the better the outcome will be. These types of skills can only
come from experience, and you must use your own discernment when approaching your employer
and asking for a raise. Eventually you will gain a better depth of understanding of your overall impact
at work, and how to better read your employer.

Example answer: what is your budget?