Jefferies interview questions, from its sector groups to the LBO

1. Step 1

   Apply

   Through its students and graduates page, where you create an account, sign up for campus events and see intern and entry-level roles. Jefferies encourages you to apply to every role you are eligible for.

2. Step 2

   Interviews

   Jefferies does not publish its interview stages. As candidates describe it, an online assessment comes first, then a first round of 20 to 30 minutes and 3 to 5 final interviews with fit and technical questions.

3. Step 3

   The summer

   Ten weeks that open with orientation and training, then seminars, mentoring, case study analysis, presentation training and formal performance reviews.

4. Step 4

   Full-time offer

   Considered on demonstrated performance and potential. Full-time analysts start with formal training in valuation, accounting and modeling, plus prep for regulatory exams.

Soreno wrote these. Every one draws on a Jefferies page about its groups or businesses.

1. 1

   Jefferies' prime brokerage offers hedge funds business consulting and capital introductions. Outside M&A, which part of the firm interests you?

   What a strong answer does

   Six divisions appear on Jefferies' students page: Investment Banking, Fixed Income, Equities, Research, Wealth Management and Corporate. This is a side question, so about a minute is plenty. Try this one out loud

   • “What does a capital introduction involve?”
   • “How did you come across that business?”
2. 2

   If you joined Jefferies' Energy & Power or Industrials group, which two skills would you most want to build in your first year?

   What a strong answer does

   Full-time analysts at Jefferies are trained in valuation, accounting and financial modeling, and in building relationships with clients and senior leaders. Its sector page lists Energy & Power focus areas from oil field services to utilities, so you can tie a skill to a subsector by name. Try this one out loud

   • “How would you learn the sector before day one?”
   • “What do you expect the first month to be like?”
3. 3

   Jefferies also runs prime brokerage and securities finance. Why is advisory the right fit for you?

   What a strong answer does

   Prime brokerage sits inside Jefferies' Equities division, which its students page lists as a separate place to apply. Expect the follow-up of why you didn't apply there, and answer it with what you want to spend your days doing. Try this one out loud

   • “What would you miss about the markets side?”
   • “Did you consider applying to Equities?”
4. 4

   Why the leveraged finance and capital markets group over an industry team like Healthcare or Technology, Media & Telecom?

   What a strong answer does

   Leveraged loans, high-yield bonds and mezzanine debt all appear on Jefferies' debt capital markets list. Be ready to explain how a loan differs from a bond before you say you want debt work, because that is an easy follow-up to ask. Try this one out loud

   • “Who buys high-yield bonds?”
   • “What happens to the group when credit markets shut?”
5. 5

   Tell me about someone at Jefferies you've spoken with and what you learned from them.

   What a strong answer does

   If you haven't spoken to anyone at Jefferies yet, say so plainly and tell them what you would ask a banker now. Its students page has a sign-up for campus events, so this is easy to fix before the interview. Try this one out loud

   • “How did you first get in touch?”
   • “Did anything they said surprise you?”
6. 6

   Real Estate, Gaming & Lodging or Financial Institutions: if you had to join one tomorrow, which would it be?

   What a strong answer does

   REGAL covers casino operators and storage as well as offices and hotels, and Financial Institutions runs from banks to fintech. Say which slice of the group you mean. If you bring in a metric, keep it straight: cap rates for property, RevPAR as the hotel driver. Try this one out loud

   • “Which subsector would you want to start in?”
   • “Which clients besides banks does Financial Institutions cover?”
7. 7

   If private equity sponsors and their companies interest you most, why do that work at Jefferies?

   What a strong answer does

   More than 950 alternative asset managers work with Jefferies' financial sponsors group, it says, from fundraising to exits. Say which stage of that life cycle you would want to work on first. Try this one out loud

   • “What does a sponsor ask its bankers for at exit?”
   • “Why not join a private equity fund directly?”
8. 8

   Why Jefferies rather than a bulge bracket?

   What a strong answer does

   Two things Jefferies says about itself are easy to check in a conversation: its culture page describes a flat, nimble partnership where people think like owners, and its banking page says senior bankers work on every transaction from start to finish. Use whichever matches what you heard from people there. Try this one out loud

   • “Where else are you interviewing?”
   • “What would make you turn down an offer here?”

Not Jefferies' own questions. As candidates describe it, its technicals cover LBOs, the enterprise value bridge and merger basics, so these do too.

1. 9

   Walk me through an LBO.

   What a strong answer does

   Purchase price, the debt and equity that fund it, cash flow paying down debt for about five years, then the exit. End with where the return came from. Try this one out loud

   • “What drives IRR the most?”
   • “Why use debt at all?”
2. 10

   How do you get from enterprise value to equity value?

   What a strong answer does

   Enterprise value belongs to every capital provider, equity value only to shareholders. Expect to be asked where preferred stock and minority interest go. Try this one out loud

   • “Why subtract cash?”
   • “Which number does a share price give you?”
3. 11

   How do you tell whether an acquisition is accretive or dilutive?

   What a strong answer does

   Compare the target's earnings yield at the offer price with the after-tax cost of what the buyer pays with. Then confirm it with pro forma EPS. Try this one out loud

   • “Is an accretive deal always a good deal?”
   • “How many synergies would flip it?”
4. 12

   Walk me through sources and uses for a buyout.

   What a strong answer does

   Both sides must match to the dollar. Keep fees and refinanced debt on the uses side, since those are the lines people forget. Try this one out loud

   • “Where does existing cash on the balance sheet go?”
   • “How do fees affect the equity check?”
5. 13

   What kinds of debt go into an LBO?

   What a strong answer does

   Know how cost, security and repayment change as you move from senior secured loans down to mezzanine. Try this one out loud

   • “Why would a sponsor take on costlier debt?”
   • “What does a covenant do?”