PWP Qs

Question 1

65 * 54

Answer 1

(65* 50) + (65 * 4) = (650* 5) + (260) = (3000+250)+(260) = 3510

Question 1

What is M&A

Answer 1

The term “mergers and acquisitions”, or M&A, describes the combination of two or more companies.

M&A, for a buyer, is an opportunity to achieve inorganic growth, rather than organic growth. In contrast, M&A to sellers is an opportunity to undergo a liquidity event, where the seller can either “cash out” and/or participate as a shareholder in the post-M&A, newly formed entity.

While the terms “merger” and “acquisition” are occasionally used interchangeably, there is a distinction:

Merger → In a merger, the combination occurs between similarly sized companies, i.e. “merger of equals”. The form of consideration – how the transaction is funded – is more often than not financed partially with stock. Usually, the two combined entities will then operate under a single name that blends their former standalone names. For instance, the merger between Chase Manhattan Corporation and J.P. Morgan & Co. led to the creation of JPMorgan Chase & Co.

Acquisition → On the other hand, an acquisition tends to imply that the target was of a smaller size compared to the acquirer. Unlike a merger, the acquired company’s name will either immediately fade away as the company is integrated into the acquirer’s operations, or it’ll continue operating under its original name in other cases. In the latter scenario, the target typically operates as a subsidiary and the acquirer hopes to leverage the target’s established branding and widespread recognition. For example, Salesforce completed an acquisition of Slack Technologies but chose to retain the “Slack” name considering how well-known Slack is among consumers.

Question 2

Root 3675

Answer 2

60.622

60 squared is 3600
61 squared is 3721

Question 3

How many airplanes are currently in the sky right now

Answer 3

○ Break Down the Problem:
§ North America: It’s morning, a peak time for flights.
§ Europe: It’s late afternoon/early evening, also a busy flight time.
§ Asia: It’s late night/early morning, so fewer flights are expected.
§ Other regions will also contribute, but to a lesser extent.
○ Basic Assumptions:
§ Flight Numbers: Let’s assume:
□ North America: 5,000 flights (given the time of day).
□ Europe: 5,000 flights (due to it being evening).
□ Asia: 2,000 flights (lower due to night hours).
□ Rest of the World: 3,000 flights.
§ Flight Duration: Average flight duration is around 2 hours.
○ Do the Math:
§ If a flight averages 2 hours, then at any given time, roughly half of the daily flights might be in the air.
§ North America: 2,500 in the air (5,000 / 2).
§ Europe: 2,500 in the air.
§ Asia: 1,000 in the air.
§ Rest of the World: 1,500 in the air.
○ Adjust for Variables:
§ This is a rough estimate and doesn’t account for flight cancellations, delays, or specific airline schedules.
○ Summarize Findings:
§ Total estimated airplanes in the sky: 2,500 (NA) + 2,500 (Europe) + 1,000 (Asia) + 1,500 (Rest) = 7,500 airplanes.
○ Reflect on the Answer:
§ This is a ballpark figure. Actual numbers could vary based on real-time flight data, specific airline schedules, and unforeseen factors like weather or special events.

Question 4

Why would 2 companies merge

Answer 4

Conceptually, synergies state that the combined value of two entities is worth more than the sum of the individual parts. Most companies tend to become actively engaged in M&A to realize synergies once their organic growth opportunities have diminished.

Question 5

What is Investment Banking

Answer 5

The investment bank performs two basic, critical functions: acting as an intermediary for capital raising, and as an advisor on M&A transactions and other major corporate actions. As an intermediary, it connects companies that need capital with investors who have capital to spend. It facilitates this through debt and equity offerings. As an advisor, an investment bank counsels companies on such corporate actions as mergers, acquisitions, spinoffs, and restructurings.

Question 6

Why Investment Banking and not Private Equity

Answer 6

Simply put, investment banking is an advisory/capital raising service, while private equity is an investment business.

Investment Banking → An investment bank advises clients on transactions like mergers and acquisitions, restructuring, as well as facilitating capital-raising. Investment bankers generate income by collecting fees for their advisory services on corporate transactions.

Private Equity → PE firms, on the other hand, are groups of investors that use collected pools of capital from wealthy individuals, pension funds, insurance companies, endowments, etc. to invest in businesses. In short, PE investors are investors, not advisors.

Question 7

Do you know a deal that PWP advised on

Question 8

Which deals are you following right now

Answer 8

A recent deal I’ve been following is Shein’s upcoming IPO, expected to take place on the London Stock Exchange (LSE) in 2024, with a projected valuation of around $60 billion. Initially, Shein considered listing on the New York Stock Exchange, but due to heightened scrutiny from U.S. lawmakers over labor practices and trade relations with China, the company pivoted to London.

One major regulatory challenge is obtaining approval from the China Securities Regulatory Commission (CSRC), as Shein still has a significant manufacturing presence in China. Furthermore, the U.S. is proposing to revoke the de minimis exemption, which currently allows Shein to ship goods under $800 to the U.S. without customs duties, a vital aspect of their business model. If this exemption is removed, Shein could face rising operational costs.

Additionally, Shein has faced criticism over its Environmental, Social, and Governance (ESG) practices. To address this, the company has launched a €200 million fund to improve sustainability in its supply chain, which is critical given the LSE’s strong ESG focus.

This deal interests me because it highlights the challenges companies face when navigating complex regulatory environments, and the importance of balancing profitability with sustainability and governance, especially in the global market.

Question 9

What are the different ways to value a company? Tell me about a valuation method

Answer 9

Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis.

Question 10

What does independent advisory mean

Question 11

Break down the main process of the income statement

Answer 11

1. **Revenue - COGS = Gross Profit **
2. Gross Profit - Operating Expenses = Operating Income

Operating Expenses = SG&A and D&A.

3. EBT = Opeating Income + (Non-Operating Income - Non-Operating Expenses)

Non-Operating Income and Expenses=
* Interest Income, Interest Expense, Gains or Losses on Sale of Assets

4. Net Income = EBT - Income Tax Expense

Question 12

What sectors are seeing a lot of interest in Investment Banking?

Question 13

Why could investors judge two companies with the same EV/EBITDA to be less or more attractive

Answer 13

Growth. Future margins. Two reported EBITDAs May have different adjustments and have different levels of “clean”. Size - impacts future margins. Industry attractiveness. Management and capital allocation policies. Trading off of different multiples, eg one of actually trading on cash flow while one is trading on EBITDA. Conglomerate or structural discounts.

Question 14

What is the terminal value

Answer 14

terminal value refers to the present value of all your business’s cash flows at a future point, assuming a stable rate of growth in perpetuity

multiple or gordon growth

Question 15

Walk me through a DCF

Answer 15

DCF values a company based on PV of its cash flows and PV of it’s terminal value

FIrst project company’s financials using your own assumptions (limitation) for re. growth, expenses, working capital; then get down to free cash flow for each year, sum and discount to NPV based on WACC (this is often very diffcult to calculate specifically unless done by a big company)

Determine the company’s Termial Value using Multiples or Gordon Growth, discount back to NPV using WACC

Add NPV of Terminal Value + NPV of Projected FCF

Question 16

How do you calculate the Cost of Equity?

Answer 16

Cost of Equity = Risk-Free Rate + Beta * Equity Risk Premium

Pull equity risk premium from Ibbotson’s

Can also include a size, industry and country premium to account for performance

Question 17

Walk me through how depreciation going up by $10 would affect the statements

Answer 17

1. Income Statement- Operating income declines by $10 and assuming a 40% tax rate, Net Income goes down by $6
2. Cash Flow Statement- Net Income goes down by $6 but depreciation is a non-cash expense that gets added back so overallnet cash flow goes up by $4.
3. Balance Sheet - PP&E goes down by $10 on assets and Cash is up by $4.

Thus assets are down by $6, since net income fell by $6 as well, SHareholder’s equity on the liabilities and shareholders side fell by $6 too.

Question 18

What is an LBO model

Answer 18

1. Walk me through a basic LBO model.

“In an LBO Model, Step 1 is making assumptions about the Purchase Price, Debt/Equity ratio, Interest Rate on Debt and other variables; you might also assume something about the company’s operations, such as Revenue Growth or Margins, depending on how much information you have.

Step 2 is to create a Sources & Uses section, which shows how you finance the transaction and what you use the capital for; this also tells you how much Investor Equity is required.

Step 3 is to adjust the company’s Balance Sheet for the new Debt and Equity figures, and also add in Goodwill & Other Intangibles on the Assets side to make everything balance.

In Step 4, you project out the company’s Income Statement, Balance Sheet and Cash Flow Statement, and determine how much debt is paid off each year, based on the available Cash Flow and the required Interest Payments.

Finally, in Step 5, you make assumptions about the exit after several years, usually assuming an EBITDA Exit Multiple, and calculate the return based on how much equity is returned to the firm.”

Question 19

What does the sterling appreciate against

Answer 19

Recently, the British pound sterling (GBP) has been appreciating against several major currencies, driven by a mix of economic and monetary policy factors.

Against the US Dollar (USD): Sterling rose by 0.5% to around $1.3190 in mid-September 2024, driven by expectations of the Bank of England (BoE) being less aggressive in cutting interest rates compared to other central banks, like the Federal Reserve​(
Pound Sterling Live
)​(
MarketScreener
). The market sentiment that the BoE may hold off on further rate cuts due to rising inflation in the UK has supported sterling’s strength.

Against the Euro (EUR): Sterling has also performed well against the euro, appreciating by 1.3% over the past months. This has been influenced by the European Central Bank (ECB) signaling a decline in interest rates, which weakens the euro relative to the pound

BNP Paribas Wealth
). As of September 2024, the GBP/EUR exchange rate was hovering around €1.18

Question 20

What is the discount rate? Why do we use it

Answer 20

In corporate finance and valuation, the discount rate refers to the rate used to convert future cash flows into present value. This is key in models like the Discounted Cash Flow (DCF) analysis.
Why is it used? Investors and companies use the discount rate to:

Account for the time value of money: A dollar today is worth more than a dollar in the future due to factors like inflation and opportunity costs. The discount rate adjusts for this, ensuring future cash flows are appropriately valued in today’s terms.

Incorporate risk: Higher-risk projects or investments often use a higher discount rate to reflect the uncertainty of future cash flows.

In this context, the discount rate is often based on the company’s weighted average cost of capital (WACC) or an investor’s required rate of return.

Question 21

Based on your understanding of the IB Analyst role, how do you think you would be able to differentiate yourself and help the team in a transaction?

Question 22

Name a recent M&A, bond, IPO deal you follow and your thoughts on it?

Answer 22

One deal I’ve been following closely is Clearlake Capital’s acquisition of Chelsea FC in May 2022. Clearlake, along with Todd Boehly and Hansjörg Wyss, purchased the club for £4.25 billion after Roman Abramovich was forced to sell due to sanctions. This acquisition was one of the largest sports deals ever, marking a significant change in Chelsea’s ownership. Since then, Clearlake has implemented major management changes, including multiple managerial shifts, to rebuild the squad and position Chelsea for long-term success both on and off the field.

What’s particularly interesting is their multi-club ownership strategy. In 2023, Clearlake expanded by acquiring a controlling stake in RC Strasbourg, a French Ligue 1 club. This bolt-on acquisition is part of a broader effort to create synergies between clubs, particularly in player development, marketing, and commercial growth. It mirrors strategies employed by other football ownership groups, like City Football Group, which diversify their portfolios and create global brands.

Question 23

What is the outlook for Oil? Where is it trading?

Question 24

What is the outlook for interest rates? Where is it trading?

Question 25

What has been the impact of US trade wars on markets?

Question 26

What has been the impact of Brexit on markets?

Question 27

Tell us about a political/commercial topic you are currently following (give accurate details and the impact of it on the Equities division, and your view. Have more than one example)

Question 28

What is the square root of 3136

Answer 28

Candidate: “Alright, let me think through this. We’re looking for a number that, when multiplied by itself, equals 3136.

First, I want to establish a range. I know some common square roots:

5
0
2
=
2500
50
2
=2500,
6
0
2
=
3600
60
2
=3600.
Since 3136 falls between 2500 and 3600, I can immediately narrow down the square root to somewhere between 50 and 60.

Next, I’ll refine my guess. Let’s start with 55, which is roughly in the middle:

55
×
55
=
3025
55×55=3025.
3025 is a little too low compared to 3136, so I know the square root must be higher than 55. I’ll try 57 next:

57
×
57
=
3249
57×57=3249.
3249 is greater than 3136, which tells me the square root is actually less than 57. Now, since 56 is right between 55 and 57, I’ll try that:

56
×
56
=
3136
56×56=3136.
That’s the exact number! So, the square root of 3136 is 56.”

Question 29

How would you invest $1 million and where would you split that in terms of geography and sectors?

Answer 29

1. Geographic Allocation:

To manage risk and capture growth opportunities, I’d aim for geographic diversification across three main regions: North America, Europe, and emerging markets.

North America (40%): The US remains a global leader in innovation, especially in technology, healthcare, and financial services. I’d allocate about 40% of the portfolio here to benefit from these sectors’ growth potential. Despite short-term challenges such as inflation and higher interest rates, the US economy has shown resilience.

Europe (30%): Europe offers opportunities in sectors like renewable energy and industrials. With the European Union’s focus on sustainability and energy transitions, I’d allocate around 30% here. Countries like Germany, France, and the UK have strong companies that can benefit from these trends. Europe also provides diversification through exposure to established markets with mature regulations.

Emerging Markets (20%): Countries like India, Brazil, and Southeast Asian nations are poised for strong economic growth, driven by demographic trends and increased industrialization. I’d allocate 20% to these regions, focusing on consumer goods, technology, and infrastructure. While emerging markets are riskier due to political and economic instability, they offer high-growth potential.

Cash or Bonds (10%): I would keep 10% of the portfolio in cash or short-term bonds for liquidity and flexibility. This allocation helps mitigate risks and allows me to take advantage of sudden market opportunities.

2. Sector Allocation:

I would then allocate across sectors that are poised to benefit from long-term trends and have resilient growth prospects.

Technology (25%): Tech remains a key driver of global growth, particularly in cloud computing, artificial intelligence, and cybersecurity. I’d allocate a significant portion here, focusing on major players in the US (e.g., FAANG stocks) and emerging tech firms in both the US and Asia.

Healthcare (20%): With aging populations in developed markets and growing healthcare needs in emerging markets, this sector offers both stability and growth. I’d invest in pharmaceutical companies, biotechnology firms, and healthcare equipment providers.

Renewable Energy and ESG (15%): As the world transitions toward sustainability, renewable energy and environmental, social, and governance (ESG)-focused companies will likely see strong growth. Europe is leading in this space, and I’d look at solar, wind, and electric vehicle supply chain investments. This would be part of a long-term strategy to benefit from government regulations and the shift away from fossil fuels.

Financials (15%): Given my interest in investment banking, I would invest in major financial institutions. While traditional banks can be volatile, they benefit from higher interest rates and play a crucial role in financing economic growth. I’d also consider fintech companies that are disrupting the space.

Consumer Discretionary (10%): As emerging markets grow and incomes rise, the demand for consumer goods (luxury, retail, and entertainment) is expected to expand. I’d invest in both established brands and companies that are poised to capture this rising demand.

Infrastructure and Industrials (10%): Finally, I’d allocate a portion to infrastructure and industrial companies, particularly in emerging markets. These companies stand to benefit from government spending on roads, rail, and renewable energy infrastructure, especially as countries focus on economic development and modernization.

Question 30

How many aeroplanes are in the sky on the 18th of septmeber at 3:30 BST

Answer 30

Question 31

Tell me about yourself

Answer 31

• I’m a second year at LSE Studying Economics and Economic history
• Heavily involved with and leading charitable groups working for years in the UK and so far in Africa through loans to hospitals and microfinance to the community.
• Both taken an interest in the healthcare industry working at the HQ of MACC Care a popular care home provider, Healthcare department of Downing an investment firm in London. Provided me with technical and interpersonal skills but for me it lacked the immediate impact that banking presents.
• Confirmed this through my internship this summer at Avington, a boutique that specialises in luxury hotels, where I worked on multiple different deal mandates from underwriting a $220 million refinancing of one of Europe’s most prized luxury hotels to securing a mandate for an advisory role on an $8 billion sale. Enjoyed the steep learning curve and responsibilities of a boutique style bank with sector specificity.
• In my spare time, as mentioned before, I work a lot in the charitable space as I serve as an advisory role to previous organisations I led and I now run an organisation called Sherpa Mentors, a west-midlands based mentoring group that has mentored over 120 mentees from low socioeconomic and underrepresented backgrounds. Enjoy football too but even more so from the important financial perspective, following deals such as Chelsea as well as upcoming sagas like Friedkin and Everton.

Question 32

Why M&A

Answer 32

Ever since I’ve looked into the ways that large financial companies such as PWP can influence impact through their expertise. I’ve found M&A to be an amazing way to do this since the synergies of bringing 2 companies’ assets and power together for the same goal can have such profound effects even greater than just a loan.
* Kibaha, amazing experience –> microfinance loans to women in struggling communities–> women with husband who left her–> food and fruit stall to get back on their feet –> Even able to then go and send her kids to college, they’re now working in the hospsital close by. - link to multiplier effect.
* Essentially the way that finance can have such an impact on communities, especially the impoverished.

For example: the Eutelsat and OneWeb deal brought together GEO (geostationary orbit) and LEO (Low Earth orbit) for the first time as well as the incumbent Eutelsat access to non-geostationary orbit (NGSO) which according to the Eutelsat CEO will make up 50% of the market in the future

Question 33

What is M&A

Answer 33

M&A is the process of merger and acquisition. Process of facilitating a company to acquire another, merger is similar while acquisition of less than.

M&A in often split into generalist M&A which give tactical insights and strategic advice to all M&A transactions, whereas sector groups utilise their specialised knowledge to build specific modes and advice.

Question 34

Why Perella

Answer 34

Perella resonates with me and my professional experience in 3 major ways: boutique method, industry specific approach and deal culture.

Elite Boutique:

• Small deal teams and much more exposure and responsibility as an analyst. Helps you develop as an analyst uch quicker.

Industry Specific Expertise:

• PWP, as Dietrich said in LSESU BIG Focal Point podcast interviewer, that what makes them unique in their strategy is a focus on always employing those with the best expertise in their deals. See in industrials for DACH region with Dietrich or TMT portugal excellence due to a portugal partner.

Deal Culture:

• From talking to previous interns, they noted how PWP looks to retain and cultivate client relationships for the long-term rather than focus on doing any deal. Results in them securing some of the biggest deals

I experienced all of this at Avington, luxury hotel boutique, that as well was a small deal team, had intense industry specific expertise to gain mandates as well as giving a uniquely strong focus on retaining relationships to gain repeat business with high quality deals.

Question 35

What did you learn in your last internship

Answer 35

I learnt a combination of technical, interpersonal skills to thrive in a high pressure environment. For example:

On the technical side I expanded my standard equity modelling to learn Hotel USALI modelling and exit transactions. This modelling was used to underwrite a $220 million luxury hotel in Europe.

In terms of soft skills, I adapted my interpersonal skills to be able to understand both client and senior relations. Particularly the when and how of asking for help, standards for deliverables and knowing when to challenge seniors with your own research viewpoints to add on value.

From these I feel I have a solid base to perform at PWP but also have space to learn more in a much larger financial institutions while maintaining the principles that let me thrive.

Question 36

What do you expect from this internship

Answer 36

I expect to start off with performing basic tasks and hopefully being able to talk to seniors about their experiences and learn from them.

I hope to use my resourcefulness and research to find ways to add value to my tasks and prove my competency.

I hope to be able to then deliver on tasks above what was expected by commiting myself to spend extra time with seniors to learn more.

Question 37

What are the day to day of an analyst

Answer 37

○ They usually start the day at 9AM and come to the office responding to emails from clients and their coworkers who want a status report, presentation, or an update on a financial model they built. But if there is a fire drill, which is an emergency where an analyst has to produce something in under 30 mins to an hour then they work on that first. Then from 9:30 til lunch they work on company analysis and make adjustments requested by the senior bankers who made these comments already last night.
○ Then lunch comes in for about 45 minutes unless there is a lot of work where they can’t eat. Then they come back to comments that were made on their models and presentations by the associates that they need to go over and revise.
○ In the afternoon, the analyst would then focus on the one deal their team was assigned which is usually the live deal and of course they have to be very careful on the little details when working on that deal since you are dealing with millions of dollars.
And towards the evening after dinner, analysts and senior bankers go over more revisions on material which add more compilation to the pitchbook. They spend 2-3 rounds in this revision-comment-correction cycle until it is past midnight.

Question 38

What is a boutique

Answer 38

Boutique is a bank that is purely focused on its investment banking division or also lacks divisions such as financing and a large balance sheet that may bias it in its advisory. As a result these banks often have smaller deal teams.

Question 39

Why IB

Answer 39

Investment Banking provides the unique opportunity to be part of the largest deals and needle moves in the world from undergraduate. This interest came from my experience in Kibaha –> microfinancing –> allowed to set up local markets and livelhoods. Made me wonder what helping facilitate larger capital would do. Internship at Avington, securing an advisory mandate for an $8 billion deal, made me confirm that I not only enjoyed being part of this impact but also the high-pressure and steep learning curve within a boutique investment bank.

Question 40

Describe the deal rationale behind the Eutelast & Oneweb deal

Answer 40

The strategic rationale behind the merger is rooted in expanding global broadband connectivity, particularly in underserved and remote areas, a major global trend.

The combined company’s GEO satellites will provide high-capacity coverage for specific regions, while the LEO satellites will offer low-latency solutions, crucial for integrating with terrestrial infrastructure.

This merger supports broader connectivity goals, including addressing the digital divide and enabling high-speed internet access worldwide, aligning with McKinsey’s research on the increasing demand for digital infrastructure and connectivity in emerging markets.

Question 41

Describe Eutelsat as a business

Answer 41

Eutelsat: Traditionally focused on providing satellite TV services through its GEO satellites, Eutelsat has been facing challenges due to the decline in TV broadcasting revenues. The company operates 36 GEO satellites, which offer high-capacity and reliable services for fixed coverage areas but suffer from higher latency, making them less suitable for real-time connectivity.

Question 42

Describe OneWeb as a business

Answer 42

A newer player in the satellite industry, OneWeb operates in the LEO segment, providing low-latency broadband services through its planned constellation of 648 LEO satellites. This technology enables faster communication speeds and more effective integration with terrestrial networks, addressing the need for real-time, global connectivity.

Question 43

Who did PWP advise in Euteslat - OneWeb merger

Answer 43

Euteslat

Question 44

Short term consequences of the $3.4bn Eutelsat - OneWeb merger

Answer 44

• GEO + LEO improve networks from day 1 with unique packages
• Eutelsats GEO are higher and higher latency, suited for weather and tv broadcasts
• OneWeb LEO suited for critical communications

Deal will hepl Eutelstats with a declining satellite video business, but their strong cash flow will provide funding for expanson into LEO market

Question 45

Long term consequences of the $3.4bn Eutelsat - OneWeb merger

Answer 45

OneWeb NGSo is key to competing.

Projected to more than $16bn by 2030. Euteslat CEOs said 50% of market will be NGSP.

Combination of GEO and LEO will help higher fill rates and revenues to grow. Help address digital white zones an d break the digital divide.

Question 46

Risks and Uncertainties of Euteslat - OneWeb merger

Answer 46

Eutelsat share price dropped
Subject to tUK regulatory

Question 47

Deal rational of $43 billion PSA (Peugot) and Fiat Chrysler Automobiles (FCA)

PWP advised PSA Group

Answer 47

The merger between PSA (Peugeot) and FCA created Stellantis, the world’s fourth-largest automaker. The rationale behind this deal was to pool resources, reduce costs, and accelerate the transition to electric vehicles (EVs) and autonomous driving technologies. Both companies faced rising pressure from regulators and consumers to embrace sustainability through electrification. The combined entity is poised to leverage the scale and technological expertise to compete in the rapidly evolving automotive landscape, particularly in EV production and next-gen mobility services such as car-sharing and connected vehicles.

This transaction reflects McKinsey’s research on EV adoption and digital mobility solutions, which predicts that by 2030, EVs will dominate the automotive market, while mobility services like ride-hailing and car-sharing will continue to rise.

Question 48

Business description of PSA Group

Answer 48

The French automotive giant, PSA, known for its Peugeot, Citroën, DS, and Opel brands, was heavily focused on the European market. PSA had already begun shifting toward electrification and had developed strong R&D capabilities in hybrid and electric vehicles (EVs), making it a crucial player in Europe’s transition to greener mobility.

Question 49

Business Description of FSA (Fiat Chrysler Automobiles)

Answer 49

• Fiat Chrysler Automobiles (FCA): FCA, based in Italy and the U.S., brought iconic brands like Jeep, Chrysler, Dodge, and Fiat to the table. While FCA had a strong presence in North America and a robust SUV and truck segment, it was lagging in electrification and was under pressure to transition more rapidly toward EVs.

Question 50

Short-term consequences of $43 billion PSA (Peugot) and Fiat Chrysler Automobiles (FCA)

PWP advised PSA Group

Answer 50

• Given slowdown of automobiles, M&A is the way to go ahead
• the synergy estimates are not based on any plant closures, and 80% of the synergies are estimated to be achieved within a span of 4 years.
• estimated that the company’s sales in Europe even outpace Volkswagen
• FCA’s experience with already delivering Chrysler Pacifica’s to Waymo, along with PSA’s considerable investments in electrification, such as the delivery of the Peugeot e-208, DS3, and Opel/ Vauxhall Corsa-e, would allow for the unification of some of their research efforts, yielding considerable synergies in R&D. Both companies will also be able to introduce Opel’s (PSA’s) drive- train technology at a much lower cost than what was previously used by FCA, the tech bought from General Motors along with Opel in 2017.
  *

Question 51

Long-term consequences of $43 billion PSA (Peugot) and Fiat Chrysler Automobiles (FCA)

Answer 51

deal is also being looked upon as a solution for FCA to deal with the most pressing issue of fuel inefficiency in its vehicle fleet as PSA has shown that it has the capacity to solve this issue at Opel Vauxhall, eliminating both Adam and Karl models from production.

Question 52

risks of $43 billion PSA (Peugot) and Fiat Chrysler Automobiles (FCA)

Answer 52

Question 53

What is the current market trend within M&A

Answer 53

M&A Market:

1. Surge in Deal Activity: The UK M&A market has shown a recovery in 2024, with overall deal values rising sharply in the first half of the year. The transaction value reached £85 billion in H1 2024, more than doubling the figure from 2023. This is largely driven by an increase in megadeals (over £1 billion), where foreign investors, particularly from the U.S., have taken advantage of lower UK valuations​.

2. Private Equity’s Growing Role: Private equity (PE) continues to dominate a significant portion of the market, accounting for 40% of deal volume. PE firms, with dry powder totaling $2.59 trillion globally, are becoming increasingly involved in joint ventures, minority stake acquisitions, and continuation funds​. 

3. Sectoral Focus: High-growth sectors such as technology, media, telecom (TMT), and healthcare are seeing more activity, with life sciences in particular benefiting from demographic shifts and post-pandemic investment​. ESG-driven M&A is also growing in importance, with regulatory pressures prompting companies to focus on sustainability as part of their deal strate UK Equity Capital Markets (ECM):
1. ECM Recovery: The UK equity capital market has bounced back in 2024, with IPO activity increasing across sectors, supported by London’s Listing Rule reforms. These reforms aim to make the city more competitive globally, with key IPOs like SEGRO’s £900 million equity raise highlighting the market's recovery​ Positive Sentiment for 2024: Surveys show a strong confidence in the ECM, with many UK corporates expecting transformational deals and larger transactions in 2024. Cross-border activity is also expected to increase, as foreign investors eye UK assets

Question 54

Tell me about a time you had to show resilience

Answer 54

Charity committee founding and planned this big flagship event for months. Covid and week before nearly cancelled —> calmed everyone down and took a positive and practical outlook —> created more marketing tools with the extra time such as BTS trailers and auctions of VIP tickets —> extra week allowed us to break the school record for fundraising, setting up our future success of raising £35,000 in our first year and receiving congratulations from the King and Minister of Education .

Question 55

What 3 words would your friends use to describe you?

Answer 55

as the Charity Committee and Sherpa Mentors

Curious - I sought out a unique and risky degree with the lowest acceptance rate at LSE rather than taking the safer choice. With my career I’ve also looked to pursues my passions and curiosity rather than purely talking the ‘prestige’ or popular choices. I believe such diverse perspectives and curiosity that diverges from the mainstream gives me a unique and diverse opinion and input.

Discipline - To achieve my aims in academics and extra-curriculars required time management and discpline to do hard work and not crumble under pressure. I teach this to mentees at Sherpa Mentors.

Question 56

Tell me your weaknesses?

Answer 56

Taking on too many or unnecessary responsibilities - From an early age I’ve taken on many different responsibilities and leadership roles to match my initiative. However this can sometimes be excessive as in my recent internship or even university societies I looked to stay on extra and do additional work just to ‘prove myself’. Reflecting on this, I believe that while going above and beyond in your tasks is essential, you should be sensible and sustainable if you want to do this as a long term job.

Trying to do everything perfectly all at once - often at times during my internship, I would want to delivery every piece of work to the highest standard as well as using my own initiative to add value; e.g rate analysis looking at every day and adjusting by suite. Whereas partners just said to take a weekly average, as we had other projects to work on. Made me realise that prioritising and being able to deliver all your tasks to a suitable standard is more important that doing one perfectly and sacrificing everything else.

Question 57

Tell me about a time that you resolved conflict

Answer 57

CC elections —> zayn problrm with others —> others angry, I wanted to give him a second chance —> came up with a solution where he could come up with and put on a successful event then he would be let in —> we put on a unique multi-faith iftar event, the first of its kind, and it was an amazing success —> proved competency and helped us spearhead future success

CC elections —> zayn problrm with others —> others angry, I wanted to gi

Question 58

Why would two companies merge

Answer 58

Synergies (Peugout Group and Fiat Chrysler Group), intellectual property (healthcare deals), market share to extract.

Question 59

How do you keep up with news and trends

Answer 59

Job at Avington and Avingstone keeps me up to date on both confidential and breaking news as part of my job is forming a weekly deals newsletter

Apart from the standard Financial Times and Economist, I utilise podcasts such as In Good Company, newsletters such as Pari Passu which give an in depth look into specific companies and topics.

I’m also integrated into the main societies at LSE who bring in their own networking events, as well as regularly attending SEO with over 100 hours in events, lunch and learns, and masterclasses.

Question 60

Why advisory

Answer 60

Take WHY IB Statement then read hassan

Question 61

Why this Programme Specifically?

Answer 61

This programme is the route into advisory at PWP through performing on the Summer Analyst role, as this is my end goal it is the perfect programme for me. It is also the perfect next step in my career journey so far, from interning at various institutions during my school years to interning last year at a boutique with an $8 billion mandate, PWP maintains the boutique values of where I thrived last year while providing a strong set up with a broad exposure to strong expertise in some of the largest deals and as the Eutelsat and OneWeb deal shows, deals on the border of innovation.

Question 62

Where do you see yourself/your career path?

Answer 62

I see myself starting out as an analyst at a strong boutique with sector expertise like PWP –> Through the summer analyst, refine my sectoral expertise and technical knoweldge in it to a high level while becoming part of the PWP culture as a ‘culture carrier’ –> One day mentor the interns who come through in 10 years time!

Question 63

What do you do in your spare time?

Answer 63

In my spare time I enjoy my charitable roles as well as football finance. My charitable roles include advisory as a chairman to my schools charity committee and being gounder of Sherpa Mentors..,

I enjoy viewing football through the lens of an investor, following the differing strategies of large instituional investors llike Clearlake Capital in Chelsea FC or upcoming potential purchases such as Friedkin and Everton.

Question 64

4. What is your weakness?

Answer 64

Taking on too many or unnecessary responsibilities - From an early age I’ve taken on many different responsibilities and leadership roles to match my initiative. However this can sometimes be excessive as in my recent internship or even university societies I looked to stay on extra and do additional work just to ‘prove myself’. Reflecting on this, I believe that while going above and beyond in your tasks is essential, you should be sensible and sustainable if you want to do this as a long term job.

Question 65

5. What is a misconception people have about you based on first impressions?

Answer 65

In the past, colleagues have mentioned that I’m “too nice,” but I see it differently. I believe kindness, flexibility, and adaptability are strengths. For example, in my recent internship I took on a last-minute project in my last couple days and even worked on the weekend after my contract ended to finish the work to a high standard .

Some coworkers thought I should have set boundaries, but I saw it as an opportunity to support the team. I knew I could handle the workload and communicate if it became too much. Ultimately, it allowed me to secure a return offer to work part-time during university and as a summer analyst in 2025.

Question 66

What strengths/skills do you have that are transferable to a role within Investment Banking

Answer 66

I’d say the main transferable hard and soft skills would be my technical skills, ability to thrive in a high pressure environment and collaborating my skills in a team enviroment.

I grew my technical skills through my previous internships and society positions, as well as through keeping up with newsletters such as Pari Passu, allowing me to complete deliverables to a high standard and quickly.

High Pressure: During my time at Avington, there were multiple deadlines dropped to be done within a few hours, which moulded my ability to prioritise and optimise my output to meet all the demands of a high pressure situation.

Team Collaboration: This would often be done through communicating with avaliable team mates and working to expolit each other’s unique skillset and prior knowledge to best complete the task.

Question 67

What strengths and skills you have that are transferable

Answer 67

I’d say the main transferable hard and soft skills would be my technical skills, ability to thrive in a high pressure environment and collaborating my skills in a team enviroment.

I grew my technical skills through my previous internships and society positions, as well as through keeping up with newsletters such as Pari Passu, allowing me to complete deliverables to a high standard and quickly.

High Pressure: During my time at Avington, there were multiple deadlines dropped to be done within a few hours, which moulded my ability to prioritise and optimise my output to meet all the demands of a high pressure situation.

Team Collaboration: This would often be done through communicating with avaliable team mates and working to expolit each other’s unique skillset and prior knowledge to best complete the task.

Question 68

Tell me when you enjoyed a fast paced environment

Answer 68

Avington –> given multiple tasks in the morning to finish by afternoon and evening –> utilised my teamworking and collaborative skills to split up tasks with colleagues according to our skillset –> Was able to finish all the materials and present to a client, crucial in securing a mandate on a $8 billion deal.

Question 69

3. Tell me when you use your decision making and judgement

Answer 69

Avington –> given multiple tasks in the morning to finish by afternoon and evening –> utilised my decision making and judgement skills to split up tasks with colleagues according to our skillset –> Was able to finish all the materials and present to a client, crucial in securing a mandate on a $8 billion deal.

Question 70

3. Tell me when you use your decision making and judgement

Answer 70

Avington –> given multiple tasks in the morning to finish by afternoon and evening –> utilised my decision making and judgement skills to split up tasks with colleagues according to our skillset –> Was able to finish all the materials and present to a client, crucial in securing a mandate on a $8 billion deal.

Question 71

Tell me about a time when you handled lots of different tasks

Answer 71

Year 13 Secondary School: Head Boy, Head of Economics, Debating, History Society. President and Founder of Charity Committee, all with A-Levels and Oxbridge applications.

Needed a way to have as much time as I could while making sure I was committed to all of them, did that through organising school study rooms. This way I could focus on achieving my academics while utilising productivity techniques such as the Pomodoro technique. It also meant I could fufill my society commitments as everyone knew when to find me if needed for a quick response. It allowed me to log hundreds of hours in total without crumbling under the pressure.

Question 72

Tell me how you approach problem solving

Answer 72

Approach problem solving through utilising teamwork and exploiting diversity of skills through my leadership . For example CC —> many different ideas from blindness to beat the beats –> Big pitch day, understood them all and feasibility –> Used my experience and skills in event management and logistics to consolidate into a few proposals encompassing all ideas

Question 73

Tell me a time where you used your motivation

Answer 73

Cycle, from Kibaha –> friend, little notice –> food, carb loading, progressive overload –> On the day I talked to other bikers to maintan my motivation –> after 8 long hours I finished

Question 74

Tell me a time when you used relationships

Answer 74

At Avington we used relationships to grab deals – MD met with CFO of RL at party –> simply got on well –> they knew of us but –> convinced them to do mandate –> proved our competence and secured a mandate.

Question 75

Tell me a time when you were in a team

Answer 75

Avington –> given multiple tasks in the mornign to finish by afternoon and evening –> utilised my decision making and judgement skills to split up tasks with colleagues according to our skillset –> Was able to finish all the materials and present to a client, crucial in securing a mandate on a $8 billion deal.

Question 76

Do you have any questions?

Answer 76

Is there anything in my skills or experience where you’d like more clarification

My aim is to be a full-time analyst at the firm, what can I do to make myself ready for the internship?

What has set apart previous interns in the past?

What roles do interns at PWP often take up?

Question 77

How many tennis balls are in a plane

Answer 77

Brain Teaser: “How many tennis balls can you fit in a plane?”

Step 1: Estimate the size of a tennis ball

Let’s guess that a tennis ball is about the size of an orange. Say, it’s around 7 cm in diameter.

We don’t need the exact volume calculation; instead, we’ll just ballpark that one tennis ball takes up about 300 cm³ (or 0.0003 cubic meters) of space. This is an educated guess based on visualizing the ball.

Step 2: Estimate the size of the plane

Imagine we’re dealing with a large plane, like a Boeing 747 or a typical commercial airliner.

If you think about the passenger cabin, let’s guess the cabin is roughly 50 meters long, 6 meters wide, and 4 meters tall (a rectangular shape, though it’s curved in reality).

So, to estimate the volume of the cabin:
50m×6m×4m=1,200cubicmeters.

Step 3: Adjust for space usage

Of course, the plane isn’t completely empty; there are seats, aisles, and other equipment. Let’s assume that only about 60% of the cabin’s volume is usable for filling with tennis balls.

So the usable volume is:
1,200cubicmeters×60%=720cubicmeters.

Step 4: Estimate how many tennis balls fit

Now, let’s divide the usable volume by the approximate volume of one tennis ball:

0.0003cubicmeterspertennisball/
720cubicmeters​
=2.4milliontennisballs

Answer: With these rough estimates, about 2.4 million tennis balls could fit inside the plane’s usable space.

Question 78

A car drives 60 miles at an average speed of 30 miles per hour. How fast should the driver drive to travel the same 60 miles in the same time period, but at an average of 60 miles per hour?

Answer 78

Impossible

The most common mistake is to respond with 90 miles per hour or 120 miles per hour – if you get a question like this in an interview, be sure to ask clarifying questions that could point you in the right direction.

In this case, for example, we might have reframed the question and asked if it was really,

“How do you travel 60 miles in 2 hours at an average speed of 60 miles per hour?”

If he said yes, we’d instantly know it was not possible.

Question 78

What is the angle formed by the hands of the clock when it is 1:45?

Answer 78

142.5 degrees. If we just think of the clock hour hand at 1 and the minute hand at the 45 position (near 9 o’clock), that is 120 degrees since they are 4 “numbers” apart, and each
number on the clock represents 30 degrees (360/12).

However, recall that the hour hand has already moved by the time the minute hand has reached the 45 position – it is now closer to 2 o’clock. 45 represent ¾ of an hour, so the hour hand will have moved ¾ of 30 degrees, or 22.5 degrees. If we add them together,
we see that 120 + 22.5 = 142.5

Question 79

You have stacks of quarters, dimes, nickels and pennies
(these represent $0.25, $0.10,
$0.05 and $0.01, respectively, in the US monetary system for anyone international).

There are an unlimited number of coins in each stack.

You can take coins from a stack in any amount and in 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?

Answer 79

Question 80

You have a hose along with a 3 liter bucket and a 5 liter bucket. How do you get exactly 4 liters of water?

Answer 80