Curious about what is suggested to brush up on. Is building operating models something that IB teams do or is that done by corporate finance teams? Also, what metrics are used for projections--ex. for accounts payable would you use DPO or other similar ratios? Or is it all based on ER projections?
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This topic has been covered hundreds of times.
Suggest you have the following locked down:
1. Basic accounting principles. How a 3 statement model interacts.
2. DCF - know how to put one together given a business projections
3. Paper LBO - like so: https://www.streetofwalls.com/finance-training-courses/private-equity-t…;
4. Comps - what are comps and what are the typical comps you'd use for a public vs private situation
Thank you!
Based on my own experience:
You need to know how everything works, not necessarily how to do it. If you can figure out how a DCF, 3 statement, comps, LBO and merger model work then you will be fine.
Realistically you’re an intern, you’re not going to be modelling on the job. Most you’ll do is some comps/update existing models.
Have a solid understanding of Excel so you can check and update things quickly without screwing it up.
FAR more important: PowerPoint
If you can get really good, really fast and not make mistakes it will make you stand out. Delivering high quality, error-free work product within the requested timescale or faster will make you look better than any modelling skills you might have but won’t be using. Always remember: Quality > Speed
That, a good attitude, friendliness and a solid understanding of the fundamentals of finance will get you an offer. Be quick to learn and ask the right questions too (only once and not if you can google it) and set reasonable expectations for when people can expect work product from you.
Good luck!
Thank you so much, appreciate the helpful advice!
I interned at jefferies and there were some people that didn’t know the difference between equity value and enterprise value
Average Jefferies employee
NYC?
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