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Happy Saturday, future bankers!

Hope everyone is doing well and having a great weekend! Today we’re covering how to pull capital out of an LBO, how quickly you settle into new roles, and Costco’s stock hiccup after missing revenue targets.

🚀 Let’s get into it.

🔢 Technical Question

What are the three ways investors can pull out capital in an LBO?

In a Leveraged Buyout (LBO), investors can pull out capital primarily through three exit strategies:

1. Sale: This is often the most preferred exit strategy. In a sale, another buyer acquires the entire company from the private equity firm. So the private equity firm sells all of its ownership in the company to that buyer.

2. Initial Public Offering (IPO): The company is taken public, and the shares held by the private equity firm are sold to public investors.

3. Dividend Recapitalization: In this strategy, the company takes on new debt and then uses the proceeds from that debt to pay a special dividend to the private equity firm.

These strategies allow investors to realize a return on their investment and potentially pull out the capital they initially invested in the LBO. The choice of exit strategy depends on various factors, including the performance of the company, market conditions, and the strategic goals of the private equity firm.

🗣 Behavioral Question

Tell me about settling into your last internship. How long did it take you to get up to speed and comfortable with your role?

Certainly! When responding to this question, consider the following best practices:

1. Contextualize Your Last Internship:

   • Begin by briefly describing the nature of your previous internship. Mention the company, industry, and the specific role you held.

   • Highlight any relevant details about the organization’s size, structure, and the team you worked with.

2. Timeframe for Adjustment:

   • Be honest about the time it took you to settle into your role. Avoid exaggerating or downplaying the adjustment period.

   • Emphasize that every internship has a learning curve, and it’s normal to take some time to get acclimated.

   • Provide a specific timeframe, such as “It took me approximately two weeks to feel fully comfortable.”

3. Learning Process and Adaptation:

   • Discuss the steps you took to get up to speed:

     • Orientation: Describe any formal orientation sessions or training you attended.

     • Shadowing: Explain how you shadowed colleagues or senior team members to understand processes and workflows.

     • Independent Learning: Share how you proactively researched industry-specific concepts, tools, and terminology.

     • Feedback: Mention how you sought feedback from supervisors and incorporated it into your work.

     • Networking: Talk about building relationships with colleagues and seeking guidance when needed.

4. Challenges and Overcoming Them:

   • Be transparent about any challenges you faced initially. It shows self-awareness and adaptability.

   • Explain how you tackled these challenges:

     • Did you seek additional resources or mentorship?

     • Did you adjust your approach based on feedback?

     • Did you collaborate with team members to find solutions?

5. Demonstrate Growth and Impact:

   • Conclude by highlighting your progress:

     • Mention specific tasks or projects where you made a positive impact.

     • Share any achievements or milestones during your internship.

     • Express gratitude for the learning experience and the opportunity to contribute.

Remember, the interviewer is interested in your ability to learn, adapt, and contribute effectively.

🗞 Industry News

🛒 Costco Stock Drops on Revenue Miss

Costco's stock dropped 7.6% after its second-quarter earnings report revealed lower-than-expected revenue. The shortfall was partially attributed to falling gasoline prices. Despite this, analysts remain optimistic about Costco stock, with many raising their price targets. This confidence is based on the company's continued revenue growth and strong comparable sales figures.

Analysts believe Costco's focus on value, membership model, and strong store traffic position it well to navigate economic uncertainty. While the company faces some challenges with slowing demand for higher-priced items, its overall performance suggests it remains an incredibly high-quality company.

Read more about this story below.

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1. Refer Friends: If you manage to get three of your friends to sign up for Finterview, we have a special offer for you. We’ll send you a curated database of links to the career pages of 100+ (and growing) investment banks. This way, you can streamline your search for new internships.

2. How It Works: All you need to do is reply to this email and list the email addresses of the friends you referred. Once we receive your reply and verify the sign-ups, we’ll email you the comprehensive list.

3. Questions or Clarifications: If you have any questions or need further assistance, feel free to reply to this email. We’re here to help! 🌟

Thanks for tuning in today! Best of luck to everyone working through recruiting right now. If you sign an offer, reply to this email and let us know about it! Like seriously, do it—we’d love to hear about it!