Debt Restructuring Roles: Your Path to Success in 2023?
Niche investment banking team prospects like restructuring look upbeat this year in the wake of bank collapses from SVB and Credit Suisse to global economic stress.
Keep reading on to know more about restructuring teams and what skills you’ll need to crack offers and even get bonuses matching and even exceeding a Morgan Stanley or JP Morgan TMT team bonus 😱
Financial institutions that rule the roost aren't bulge bracket banks, but elite boutique and middle market firms like Rothschild & Co., Jefferies, Lazard, Houlihan Lokey and consulting firms like McKinsey, FTI Consulting plus even big 4 consulting players who do release summer internship and other off-cycle internships for their dedicated teams.
What can you expect in a restructuring internship?
🎯 You’ll get to work on transactions with creditors and/or debtors and may have the opportunity to provide advisory services and witness negotiations.
🎯You'll interact with stakeholders and internal/external parties like investment bankers, lawyers, auditors, consultants, and clients.
🎯Expect tasks like financial analysis, cash-flow forecasting, and financial investigations, as well as dealing with creditor claims and evaluating financial records. You’ll be able to gain a greater understanding of valuation methodologies, business plan development, negotiation strategies, and RX implementation techniques, amongst others.
🎯It is also critical that you be able to analyse complex sets of data and produce insights and suggestions in a manner that is easy to understand for those less involved in the financial aspects of restructuring.
Overall, this can be a highly demanding but also very rewarding field. You may find yourself in a deals team, or a team focused on turnaround and restructuring specifically.
Skills you'll need to thrive in RX
Apart from a degree in accounting finance students with a legal background have the advantage of interpreting the legal jargon of contracts. Strong skills in financial modeling discounted cashflow and LBO model will come in handy along with your knack to thrive in high pressure.
Here are interview questions that you MUST be prepared to answer for RX interviews
✅ Explain debt vs equity analysis
✅ What sort of "deals" do we do?
✅ Discuss the purpose of the “feasibility test” is under Chapter 11 bankruptcies?
✅ What does out-of-court restructuring involve, and why do RX bankers consider it the ideal option for a distressed firm?
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