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Happy Monday, future bankers!

Hope everyone had a great, long weekend. Enjoy it while you have it.

🚀 Let’s get into it.

🔢 Technical Question

“What are examples of non-recurring charges we need to add back to a company’s EBIT / EBITDA when looking at its financial statements?”

• Restructuring Charges

• Goodwill Impairment

• Asset Write-Downs

• Bad Debt Expenses

• Legal Expenses

• Disaster Expenses

• Change in Accounting Procedures

Note that to be an “add-back” or “non-recurring” charge for EBITDA / EBIT purposes, it needs to affect Operating Income on the Income Statement. So if you have one of these charges “below the line” then you do not add it back for the EBITDA / EBIT calculation.

Also note that you do add back Depreciation, Amortization, and sometimes Stock-Based Compensation for EBITDA / EBIT, but that these are not “non-recurring charges” because all companies have them every year – these are just non-cash charges.

🗣 Behavioral Question

"Tell me about a time you had to work effectively in a team with a difficult or challenging person. How did you handle the situation?"

This question assesses your teamwork skills, conflict resolution abilities, and overall emotional intelligence. It goes beyond simply stating you're a team player and delves into how you navigate real-world challenges within a group dynamic.

Key Points to Hit:

• Identify the challenge: Briefly describe the situation and the specific difficulty you faced with this teammate. Be specific about the nature of the challenge (personality clash, differing work styles, communication issues, etc.).

• Your actions: Explain the steps you took to address the situation. Did you initiate a direct conversation? Did you involve other team members or a supervisor? Did you adjust your communication style or approach?

• Positive outcome: Focus on the positive outcome of your actions. Did you successfully resolve the conflict? Did you improve communication and collaboration within the team? Did you learn something valuable from the experience?

• Highlight relevant skills: Showcase the skills you used to navigate the situation, such as active listening, empathy, communication, assertiveness, or conflict resolution.

Example Response:

"During my internship at a wealth management firm, I was partnered with a teammate who had a very competitive and somewhat abrasive personality. This sometimes led to disagreements and tense work environments. To address this, I decided to initiate an open and honest conversation. I acknowledged their strengths and expressed my concerns about our communication. We agreed to establish clear expectations and set guidelines for respectful collaboration. Additionally, I started actively listening to their perspective and providing constructive feedback in a positive manner. This open communication and willingness to adapt helped us overcome our differences and work effectively together. We actually ended up delivering one of the most successful projects during my time there, proving that even challenging team dynamics can be overcome with communication and understanding."

Remember:

• Keep your response concise and focused on the specific question.

• Use the STAR method (Situation, Task, Action, Result) to structure your answer.

• Be honest and authentic, but avoid negativity or blaming others.

• Highlight your transferable skills and demonstrate your growth from the experience.

🗞 Industry News

A large online gaming company has confirmed a takeover bid from a French group. It’s reported that the offer could be valued at close to $2.5 billion. Not too shabby, right?