This blog shares the insights from a recent podcast featuring one of our placed candidates from the Investment Banking Program. Atishay Jain, who qualified as a Chartered Accountant (CA) in 2022 and completed his CFA, got placed with Deloitte as an Assistant Manager in the Valuations department. In this podcast, Atishay talks about his journey, the preparation, and the experiences that led to his success. His story is a great example for anyone aspiring to get into the field of Investment Banking and related profiles.

Ready to pivot your career into Investment Banking just like Atishay did?
Explore Jobaaj Learnings Investment Banking Program

Kickstart Your Investment Banking Career – Apply Now

Podcaster:

Let’s get started. Please introduce yourself.

Atishay:

Yeah, I’m Atishay Jain, qualified as a Chartered Accountant and completing my CFA. I'm currently looking for job opportunities and learning at Jobaaj Learning. I’m placed and will be joining next week.

Podcaster:

Right, where are you based?

Atishay:

I’m based out of Surat.

Podcaster:

All right. You completed your CA in 2022, correct?

Atishay:

Yes, that’s right.

Podcaster:

And you’ve also completed all three levels of CFA?

Atishay:

Yes, all three levels.

Podcaster:

What motivated you to pursue CFA?

Atishay:

There wasn’t anything specific. It was more about continuing my studies without a break. I also had a business venture in mind, so I kept my studies ongoing. Once I completed my CFA, I was looking for job opportunities. That’s when I came across the Jobaaj Learning workshop, which prompted me to join the program.

Podcaster:

How did you plan out your CFA? Did you take it while working through your CA inter-level? Can you share your roadmap?

Atishay:

I started CFA after completing my articleship in CA. It was a separate timeline. I began in February 2023, took the first level exam, and completed all three levels within a year, by February 2024. It didn’t overlap with my CA exams.

Podcaster:

Can you tell us about your work experience after completing your CA?

Atishay:

On the job front, I didn’t have any experience. I was exploring opportunities in Surat, working on my own business idea. However, due to certain circumstances, I decided not to pursue it. That led me to look for job opportunities, and now I’m set to join next week.

Podcaster:

So you’ve completed your CA and CFA, and now you’ve decided to step into the workforce, correct?

Atishay:

Yes, that’s right.

Podcaster:

Okay, tell us about your association with Jobaaj Learning. How did you find out about us?

Atishay:

I came across the workshop on Instagram. It was something I was interested in, especially related to Investment Banking. I joined the workshop, learned a lot, and decided to pursue the program. I’m a quick learner, so I completed the course and assignments in a short period.

Podcaster:

How long did it take you to complete the program?

Atishay:

The academic courses and recorded lessons took me about a month. Completing the assignments on financial modeling and research took another month. By then, I was also looking for placement opportunities, and I secured one in about a month and a half.

Podcaster:

While you were working on the assignments, were you already in the placement process?

Atishay:

Yes, the placement process had already begun.

Podcaster:

Let’s talk about the placement. I understand you received two job offers. Can you tell us about the interview process and how you prepared for them?

Atishay:

The job leads came through LinkedIn and the job portal. Vishakha Ma’am helped me by sharing the opportunities. I applied to positions that aligned with my preferences, especially near Mumbai. The interview process typically included 2-3 rounds. The first round was technical, where they assessed my skills. The second round focused on Excel, especially advanced functions like VLOOKUP, OFFSET, and macros. The final round was with the director, where my communication skills and adaptability were tested.

Podcaster:

So, the interview process was similar for both roles?

Atishay:

Yes, it was quite similar. Both had three rounds.

Podcaster:

What were the profiles you were offered?

Atishay:

The first offer was for financial due diligence, and the second was for valuations. I preferred the valuation role, so I decided to join that.

Podcaster:

Now that you’ve joined Deloitte, what’s your designation?

Atishay:

I am an Assistant Manager in the Valuations department.

Podcaster:

And where are you based?

Atishay:

I’m based in Mumbai.

Podcaster:

Can you tell us about the kind of questions asked for the valuation profile and what one should prepare for?

Atishay:

In valuations, you need to be familiar with concepts like cost of capital, FCFF, and how to calculate it. You should understand the reasoning behind using FCFF and when to apply it. Also, financial knowledge, especially regarding IRR and project evaluation, is crucial. Excel skills are a must—be quick with advanced functions like macros and formulas.

Podcaster:

Your CFA qualification definitely helped with the foundational knowledge. What role did the Jobaaj Learning program play in your preparation for the interviews?

Atishay:

CFA and CA provide a broad knowledge base, but Jobaaj Learning focused on the specifics of Investment Banking. It gave me direction and helped me apply my learning in a practical setting. The financial modeling, Excel, and research reports taught me how to develop dynamic models that are crucial in the industry.

Podcaster:

And what kind of financial models did you work on?

Atishay:

I worked on a tire manufacturing industry model. Initially, the model I created had many flaws, but after receiving feedback from Aman Sir, I was able to improve it. This model was instrumental during my interviews.

Podcaster:

How did the one-on-one interactions help in improving your work?

Atishay:

The instant feedback I received, especially on WhatsApp, was extremely helpful. It allowed me to correct my assumptions and improve my models right away.

Podcaster:

How was your placement experience with Jobaaj Learning?

Atishay:

It was very convenient. Ma’am shared relevant job opportunities and scheduled interviews. The guidance provided on what to prepare for the interviews was also very helpful.

Podcaster:

Any advice for someone aspiring to get into Investment Banking, especially valuation profiles?

Atishay:

Focus on mastering the core concepts. For valuation roles, understanding the concepts behind FCFF and cost of capital is essential. Also, developing your Excel skills beforehand is crucial, as you won’t have enough time to learn on the job. Being prepared in advance will make your learning curve much smoother when you join.

..............

Don’t miss the full conversation—watch the podcast now and get inspired by Atishay's journey!

 

General interview questions answered by Atishay during his selection process

Can you walk us through the DCF (Discounted Cash Flow) model? What are the key steps involved?

Sample Answer: A DCF model involves projecting the free cash flows of a business over a certain period and discounting them back to the present value using the company’s weighted average cost of capital (WACC). The key steps are:

  1. Projecting Free Cash Flow (FCF): Estimate the company’s revenue, operating income, depreciation, working capital, and capital expenditures.

  2. Calculating the WACC: This includes the cost of equity and the cost of debt, weighted based on the company’s capital structure.

  3. Terminal Value Calculation: After projecting the free cash flows for a certain period, calculate the terminal value using the perpetuity growth model or exit multiple approach.

  4. Discounting Cash Flows: The projected free cash flows and terminal value are discounted back to the present value using the WACC.

  5. Final Valuation: The present value of the cash flows and terminal value gives the enterprise value of the company.

How do you approach financial modeling for a company’s valuation?

Sample Answer: I start by gathering historical data like income statements, balance sheets, and cash flow statements. Then, I project the company's financials based on assumptions for revenue growth, operating margins, and capital expenditures. Once the projections are in place, I move to valuation methods like DCF or comparable company analysis (CCA). I ensure the model is dynamic by using Excel functions like VLOOKUP, INDEX/MATCH, and data validation to make it flexible and user-friendly.

Can you explain the process of calculating the cost of capital for a company?

Sample Answer: To calculate the cost of capital, you need to determine both the cost of equity and the cost of debt:

  1. Cost of Equity: This is calculated using the Capital Asset Pricing Model (CAPM), where the formula is:
    Cost of Equity = Risk-Free Rate + Beta × (Market Return – Risk-Free Rate). Beta measures the company’s volatility compared to the market.

  2. Cost of Debt: The cost of debt is the effective interest rate the company pays on its debt, adjusted for tax benefits. The formula is:
    Cost of Debt = Interest Rate × (1 - Tax Rate).

  3. WACC (Weighted Average Cost of Capital): This is the weighted average of the cost of equity and the cost of debt, weighted by their respective proportions in the company’s capital structure.

Can you give an example of how you would apply Excel’s VLOOKUP and INDEX/MATCH in financial analysis?

Sample Answer: VLOOKUP is useful when you need to find a value in a large data set. For example, if you have a financial model with historical revenue data for multiple years and you want to extract a value for a specific year, VLOOKUP can be used to find and return that year’s revenue.
Example formula:
=VLOOKUP(Year, Data_Range, Column_Index, FALSE).

However, I prefer INDEX/MATCH for more flexibility. INDEX/MATCH allows for vertical and horizontal lookups, which is useful when the data you need to lookup isn’t in the first column. For example, if you want to look up a company’s revenue from a table where the year is in a non-first column, I would use the formula:
=INDEX(Data_Range, MATCH(Year, Year_Range, 0)).

How would you approach building a valuation model for a tech company versus a traditional manufacturing company?

Sample Answer: For a tech company, the focus would be on revenue growth and scalability. I would project higher growth rates, especially for companies in the early stages, and focus on metrics like customer acquisition cost (CAC) and lifetime value (LTV). The discount rate might also be higher due to greater risks in tech startups.
For a traditional manufacturing company, I would have slower, more predictable growth with a focus on cost structure, inventory management, and capital expenditures. The valuation might rely more on stable free cash flows and less on growth projections.

Can you explain what an LBO (Leveraged Buyout) model is and when it is used?

Sample Answer: An LBO model is used to evaluate the financial viability of a leveraged buyout transaction, where a company is acquired using a significant amount of borrowed funds. The key components of an LBO model include:

  1. Debt Financing: The majority of the purchase price is funded through debt.

  2. Equity Financing: The remainder is funded by the private equity firm or investors.

  3. Operational Assumptions: The company’s operations are assumed to improve to pay down the debt over time.

  4. Exit Strategy: The model also incorporates an exit strategy, usually within 3-7 years, where the firm aims to sell the company for a profit. The model helps investors understand the potential returns, considering the risks and benefits of using leverage.

Walk me through a time when you had to solve a complex Excel problem during your work or studies.

Sample Answer: During my CFA studies, I had to build a financial model to calculate the valuation of a company. The challenge was to create a dynamic model that could incorporate different scenarios, including changes in revenue growth, discount rate, and capital expenditure. I used advanced Excel functions like INDEX/MATCH, OFFSET, and IFERROR to make the model flexible and robust. After several iterations and feedback from mentors, the model was finalized, and it worked well during my interviews.

How do you keep track of your work and ensure accuracy when working on large financial models?

Sample Answer: I prioritize organization and structure when working on large financial models. I break the model into sections—input assumptions, calculations, and output results. I use color coding to differentiate between inputs, formulas, and outputs. Additionally, I regularly check my work by using consistency checks like SUMIF to verify totals or balance sheets. I also document assumptions and updates, so anyone reviewing the model can follow my reasoning. Regular cross-checking with the team and supervisors also helps ensure accuracy.