Moelis interview questions, from Suited to the final round

1. Step 1

   Apply

   Through its student application website, with a succinct one-page resume. No cover letter needed. Up to two applications.

2. Step 2

   Suited Assessment

   US and UK applicants. About 30 uninterrupted minutes, measuring over 50 traits. You take it once and can share results with other firms.

3. Step 3

   First round

   One to two interviews with investment bankers, with technical and behavioral assessments.

4. Step 4

   Final round

   Onsite, meeting multiple senior bankers who further evaluate your knowledge and capabilities.

Moelis says be authentic. It values curiosity, drive and enthusiasm.

1. 1

   Walk me through your resume.

   What a strong answer does

   Moelis wants the resume to lead with deals and measurable results. Talk the same way: what you worked on and what changed because of you. Practice it, see a model answer

   • “What exactly did you do on that deal?”
   • “What would you cut from your resume?”
2. 2

   Why Moelis?

   What a strong answer does

   It calls itself an independent firm on a global platform. Tie that, or a recent Moelis transaction, to the work you want. Practice it, see a model answer

   • “Which recent Moelis deal did you follow?”
   • “Why not a bulge bracket?”
3. 3

   Why investment banking?

   What a strong answer does

   Show you tested the interest, and say what part of advisory work you want to do every day. Practice it, see a model answer

   • “What will you find hardest?”
   • “What do you want to be doing in five years?”
4. 4

   Tell me about something you taught yourself because you were curious.

   What a strong answer does

   Moelis names curiosity first among what it values. Show how you went about it and what you can do now. Practice it, see a model answer

   • “How did you know you'd understood it?”
   • “What are you learning now?”

Moelis says refresh financial statements and valuation and truly understand them.

1. 5

   A company records $10 of stock-based compensation. Walk me through the statements.

   What a strong answer does

   At 25% tax the $10 costs $7.50 of net income. Add back the non-cash $10 and cash is up $2.50. Paid-in capital rises $10, so equity is up $2.50 and it balances. Practice it, see a model answer

   • “Should you add it back in a DCF?”
   • “How does it affect diluted shares?”
2. 6

   Walk me through how you get from revenue to unlevered free cash flow.

   What a strong answer does

   EBIT, less taxes, plus D&A, less capex and the change in working capital. Say why interest is left out. Practice it, see a model answer

   • “What about stock-based compensation?”
   • “How would levered free cash flow differ?”
3. 7

   How do you calculate terminal value, and which method do you trust?

   What a strong answer does

   Perpetuity growth or an exit multiple. Cross-check one against the other and say what each implies. Practice it, see a model answer

   • “What growth rate is too high?”
   • “What share of value should terminal value be?”
4. 8

   How do you calculate diluted shares?

   What a strong answer does

   The treasury stock method for options in the money, then convertibles if they dilute. Show the math on a small example. Practice it, see a model answer

   • “Why use the treasury stock method?”
   • “How do RSUs differ from options?”
5. 9

   Would a buyer rather pay with cash, debt or stock?

   What a strong answer does

   Compare the cost of each with the target's yield, then cover control, risk and the seller's taxes. Practice it, see a model answer

   • “When is a stock deal accretive?”
   • “Why would a seller prefer stock?”

Moelis tells you to practice contributing to market discussions.

1. 10

   Tell me about a recent Moelis transaction.

   What a strong answer does

   Moelis tells you to know its recent transactions. Who the client was, what Moelis did and why the deal made sense.

   • “What would you have advised differently?”
   • “Who else could have bought it?”
2. 11

   What are synergies, and which kind would you trust more?

   What a strong answer does

   Cost synergies are easier to prove than revenue ones. Say how you would test a number a buyer gives you. Practice it, see a model answer

   • “How long until synergies show up?”
   • “Who captures them, buyer or seller?”
3. 12

   What's one market trend you would discuss with a client this week?

   What a strong answer does

   Pick something a CEO would raise in a meeting, explain what it does to their next decision, and know the counterargument. Practice it, see a model answer

   • “How does it change M&A activity?”
   • “Which sector does it hit hardest?”
4. 13

   What makes a company a good LBO candidate?

   What a strong answer does

   Stable cash flow, room for debt, a reasonable price and a clear exit. Tie it to a real company type. Practice it, see a model answer

   • “Where do LBO returns come from?”
   • “What's the difference between IRR and MOIC?”

• Rushing Suited

  Moelis asks for 30 minutes of uninterrupted time, and you take the assessment only once.

• Applying late

  US summer analyst applications typically open in December of your sophomore year.

• Reciting instead of explaining

  Moelis asks for a true understanding of financial concepts. Expect follow-ups.

• Silence in the market discussion

  It tells candidates to practice contributing to market discussions.

Moelis gives four interview tips. One step for each.

1. Before you apply

   Do your research

   Its vision and values, recent news and transactions. Keep your one-page resume clear and error-free.

2. Before Suited

   Block 30 minutes

   Somewhere quiet. The result goes to any firm that asks, so take it seriously.

3. Before the first rounds

   Refresh the technicals

   Financial statements and valuation, until you can explain them, not recite them.

4. Before the final round

   Mock interviews

   Practice answering questions and joining market discussions. And be authentic.