Greenwich Capital Interview Flashcards
Tell me About yourself / Walk me through your resume
Why Investment banking?
I want to work in IB for many reasons. The first is that the work you are doing is important. When companies come to IBs, whether it be for an IPO or something else, it is one of, if not the most important moments in the company’s history. Additionally, investment banking is dynamic. No 2 deals are the same which makes the work interesting. Lastly, there is no job that mimics IB in terms of how much you can learn so quickly.
Why Greenwich Capital?
I want to work for Greenwich Capital Group because after doing research I realized that working at a middle market bank like Greenwich Capital would provide a great opportunity to gain experience and exposure that I wouldn’t get at a larger bank. I like the ability of being able to be more involved with the deal process and have more client interaction and responsibility. Also, I watched the video on your website and one of the analysts mentioned that Greenwich has a work environment where you are able to interact with senior bankers on deals not just associates and other analysts and I find that very important.
What are the main factors that cause a need for mergers and acquisitions?
- Saving money
- Improving financial health and overall metrics
- Eliminating competition from the market
- Gaining more power over pricing by buying out a distributor or supplier
- Diversifying or specializing — expanding the company’s product or finding ways to make it more niche for a specific market
- Expansion of technological abilities or absorbing new technologies from acquired companies
When should a company issue debt instead of equity?
- The company can get tax shields from issuing debt.
- The company has stable cash flows and can make interest payments.
- It results in a lower WACC.
- The company can get a better return on investments with more financial leverage.
What is net working capital?
NWC = Current Assets – Current Liabilities
