Why Houlihan Lokey Interview Questions
How to answer the question "Why Houlihan Lokey?"
What is Houlihan Lokey?
Houlihan Lokey is an esteemed American institution and independent boutique investment bank with a global presence in 19 countries. The company works in several areas, including M&A, Private Funds Advisory, Transaction Opinions, Real Estate Valuation and Advisory, and more.
You can read more about the company’s areas of work here.
At Houlihan Lokey, we are driven by a mission to foster an inclusive and diverse environment where everyone is valued and treated equally. Remember this when answering questions, as you can tie these values into your answers.
For more information on the firm's commitment to corporate social responsibility, click here.
Before applying for a position at Houlihan Lokey, you must familiarize yourself with the interview process. The selection process typically involves multiple steps, as outlined on Wall Street Oasis’s interview questions site for the firm.
For the past decade, Houlihan has been the best M&A advisor for transactions under one billion dollars. Houlihan has been the best M&A fairness opinion advisor for nearly 30 years. The bank receives top ratings from many financial gurus. So expect a lot of competition when applying.
After submitting your application, successful candidates will be invited to a first-round screening. This involves both behavioral and technical questions. This first-round phone interview is with an analyst.
Applicants who do well in the first-round interview will be invited to Superday. At Houlihan Lokey Superday, candidates may be interviewed three times.
These three 20-minute interviews are with junior and senior employees. Unlike many other investment banks, Houlihan’s Superday focuses less on technical skills and more on assessing your personality fit with the firm.
Prior to the interviews, brush up on your Excel skills. The WSO interview questions site for Houlihan includes several reviews where people say there is a technical Excel assessment.
The company also organizes time for candidates to meet employees working in roles relevant to what the candidate applied for. Shortly after the interview, the Houlihan team will extend offers to those who are selected via email or phone.
Read about the firm here.
Interview Tips
- Practice common IB questions; the company will likely spin some of them off and make them unique.
- Highlight how you resonate with Houlihan Lokey’s partnership, passion, and hard work values.
- Showcase the breadth of your financial knowledge. Don’t just reference your professional or educational accomplishments; try to discuss any courses or certifications you have taken in your spare time.
- Go in-depth about M&A or restructuring deals you have worked on. The company prides itself on employees who have a strong reputation.
- Use the STAR method: Situation, Task, Action, Result.
Why Houlihan Lokey Interview Question
Investment banks love to throw this question at candidates. “Why us?”
Make sure you practice answering this question, as it will 100% be asked in your interview.
A compelling and genuine response is essential to leave a lasting impression on the interviewer. The interviewer can control your chances. If you are polite, respectful, inquisitive, and knowledgeable, the interviewer will give your application high marks.
The purpose of this question is to understand more about the candidate. What will you bring to the firm? What is your motivation? What is your story?
Make your response the best possible by:
- Using a personal anecdote
- Describing how Houlihan Lokey’s mission/values resonate with you
- Not bringing up salary
An example response is:
“I am excited to interview with Houlihan Lokey. The firm has a well-developed reputation in the investment banking industry. I am interested in working here as the firm also has a reputation for delivering the highest-quality services and products. I believe the firm is the right fit for me.
The company’s proven track record of excellence is a key reason why I want to work here. The firm and its employees are committed; I want to be a part of such a driven environment. This will push me to better myself.
Houlihan Lokey has one of the highest employee satisfaction ratings across all investment banks. One of the reasons why is the entrepreneurial mindset the firm instills in employees. I hope to think creatively and demonstrate initiative.
I highly regard the firm as it works with a diverse clientele. I want to get involved with clients globally, and thankfully, Houlihan offers this. In particular, I want to work in Capital Markets.
Houlihan is a connected firm. Employees discuss with each other, and everyone gets to know one another. I admire this in a firm. I hope to get to know everyone I work with and take away valuable lessons.
Everyone is more than an employee. The firm prioritizes the individual.
I am a strong fit for the company. I believe I bring a lot to the table and can broaden my horizons as well.”
Here is another response:
“I am thrilled to interview for Houlihan Lokey. The firm’s commitment to excellence is what caught my eye. I believe my character and experience best align with HL.
Outside of my job, I enjoy reading and taking IB courses. The courses take up a chunk of my time and on a daily basis, I spend 2 hours on courses and honing my skills. As someone who never settles and wants to improve, I feel that Houlihan is for me.
The workplace’s tight-knit group and communication is exactly what I seek. I have worked at firms where everyone is so focused on their own work, that no outside communication ever occurred. I can see Houlihan is the total opposite of this, and I applaud that.
The firm's global clientele is an exciting prospect. This diverse group aligns with my goals, especially within the realm of IB. You will see I have worked with clients across North and South America. I cannot fathom the possibility of working globally, from the Americas to Asia.
It is truly exciting! I hope to work here.”
Why Houlihan Lokey Interview Questions: Behavioral Questions
During interviews, behavioral questions are asked to understand the individual and their fit to the firm. These questions may involve handling certain situations, behaving in high-pressure situations, what experiences you have that will benefit you in this role, etc.
Be prepared and have thoughtful responses to the behavioral questions. Do not overlook these questions.
It is important to highlight your actions, the challenges you have endured, and the outcomes. These answers should be drawn from professional experiences. Utilize the STAR method.
Examples of behavioral questions include:
Houlihan Lokey Behavioral Interview Questions
Describe the achievement as best as possible and then relate it to you.
Answer:
“My proudest achievement was in my last role. I closed a deal with a Big 4 client. The deal brought in a major cash influx for my firm, and my managers were all very proud of me. That felt like a pat on the back, and all my years of studying and hard work seemed to pay off.”
Answer this question by highlighting your course of action. How did you work through this problem? Describe the client’s steep demands and your problem-solving skills.
Answer:
“While working through a deal, my client had high expectations and asked for revisions about 6 times in the week leading up to the presentation of the deal. My team and I listened to the requests and accommodated the client. Although it was inconvenient, we did not want to lose this client.
My team and I were flexible, and we sat through a full-day review system where we walked through each step of the deal with the client to ensure we addressed all of their requirements.
By being understanding and putting the client first, we were able to work through the deal successfully. The client is now a longstanding client of the company.”
Be honest and display your understanding. Explain what you would do to make it up to them. Talk about your situational awareness and desire to make things right.
Answer:
“I would actively listen to the client. I understand the client comes first. For this reason, I would be empathetic and understand the true cause of their disappointment.
I would be honest and discuss options to make things right. I want to be on the best terms with all my clients. I understand sometimes the firm can make mistakes or not handle things the best way, so I am glad the client voiced their concerns so the firm can improve.”
There is no cookie-cutter answer for this. Be personal. Interviewers can tell if you use a generic answer that you searched online. Be genuine.
An answer to this might look like this:
“My interest in investment banking stems from my passion for finance. Since college, I have been interested in personal finance, which has translated into a career for me. I want to help clients with their financial needs. I participated in finance clubs and case competitions.
I hope to work in M&A so that I can get exposure to various industries.
Investment banking piques my interest as no work day is the same as the one before. I look forward to the dynamic aspect of the job as I will continuously grow my horizons and learn more about industries and markets.
Investment banking is needed everywhere, I want to work in investment banking so I can make an impact in the global financial space.”
Understand what ethics and values you highly admire. The same standards you hold yourself to should be along the lines of what you look for in a coworker.
An answer to this might look like this:
“An ideal coworker is great at communicating, is capable of collaborating, is professional, is able to work in any situation, is consistently improving, and is a down-to-earth human being.”
Why Houlihan Lokey Interview Questions: Technical Questions
Houlihan’s questions vary from candidate to candidate. To be prepared for technical questions, stay up-to-date with the news, and understand industry developments and job requirements.
Examples of technical questions include:
Houlihan Lokey Technical Interview Questions
“Unlevered beta does not consider the debt in the capital structure. Unlevered is the risk for the company’s operations, and levered is the impact of debt on the risk taken by the company.”
“Weighted average cost of capital is a metric to determine how much a business pays to finance its assets, on average. The equation is
[(Weightage of equity * Cost of equity) + (Weightage of debt * Cost of debt)] * (1 - Tax rate).”
“The leveraged buyout model gauges how possible a firm can undertake a transaction. The model uses factors like cash flow projections and potential returns to understand the financial viability of transactions and if the risks are worth taking on.
“Healthcare is driven by insurance, demographics, technology changes, and government regulations.”
“Debt paydown is the method by which debt is repaired throughout the investment’s duration. The LBO model has a timeline of the principal and interest payments the firm must make. Dates are spelled out.”
Technical questions are not as bad as people make them out to be. Just make sure you practice your responses, have solid examples prepared, and know the role you are applying for.
Conclusion
Whether you are looking to apply for a role at Houlihan or are currently interviewing, utilize WSO’s resources for preparation. Interviews are easy only if you prepare. Practice your responses and refine them.
Know what you are talking about inside and out. Make sure you demonstrate your knowledge and personality. Interviews are a learning process. Find out how you best practice and learn. Remember, you are not alone in this.
Do as many behavioral and technical practice questions as you can. You will gain experience answering the questions.
Experience will make you appear calm during the interview. Interviewers want someone who is calm and relaxed.
Don’t worry. You got this!
This article, the Wall Street Oasis website, and the company site are great resources to check out.
Good luck with your applications and interviews!
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