recruiting for the bank case study

What banks need to know about hiring in a highly competitive environment

Shapes organizational strategies to establish talent management as a distinctive advantage, preparing leaders to manage the workforce of tomorrow and create business value

Partners with clients to enable business strategies and drive sustainable change through talent management, organizational design, and operating-model transformations

May 24, 2019 The talent that banks are seeking—people who can help the institution build the digital, automation, and analytical capabilities they need to succeed today—is in high demand. Banks are competing not only against other banks, but against all firms seeking a sustainable talent advantage.

Of course, hiring talent is only one side of the talent coin: Banks will not succeed unless they also develop their current employees through reskilling and upskilling programs. But improving the hiring process is clearly a necessity for banks. A recent post on the McKinsey Leadership & Organization  blog addressed ways that organizations across industries are widening the net  in their search for talent.

Increasingly, according to the post, companies are turning to unexpected sources, many never considered before for hard-to-fill jobs. Some are removing minimum experience requirements to ease what were once considered automatic disqualifiers.

When drawing from sources that haven’t previously been used, assessing candidates well becomes more important than ever. And evaluating them based on prior experience isn’t enough. One financial services firm found that for candidates in one of their two primary sales roles, prior sales experience had no impact on performance. For these jobs, which focused on renewals as opposed to new sales, certain personality traits were far more indicative of success. For some roles, who someone innately is can matter more than what’s on a resume.

Furthermore, traditional means of judging a candidate’s readiness for a role should be re-examined in the search for new talent. One branch of a financial services firm—which happened to be located in a city with several colleges and abundant graduates—had made it a practice to focus their search on candidates with college degrees or advanced degrees. But they eventually found that candidates with associates degrees were more motivated and outperformed—and outlasted—those with full degrees.

In that light, it’s worthwhile to revisit the importance of intrinsic traits. Our research suggests these characteristics, coming from within the person, such as personality or motivations—can account for 5 to 20 percent of variance in performance. For roles with historically high attrition rates, being aware of this fact can make a big difference.

How can companies assess intrinsic traits? We start by pinpointing what characteristics matter most for high performers by role within the organization. (The answers can be counterintuitive: at a fast food chain, we found that extroverted sales associates actually decreased customer satisfaction scores—customers tend to favor speedy and accurate service over extroversion.)

A fast-growing bank in Asia needed to recruit a large number of front-line agents. Initial efforts failed to draw enough resumes, and many of the candidates the bank did hire (often in a hurry, under pressure) turned out to be poor fits, with many quitting after a short time. To address the challenge, the bank developed advanced analytics models to understand the relationships between agents’ performance and their backgrounds and traits; they then redesigned the recruiting process to target and screen candidates with the right backgrounds and traits. The new process boosted candidate supply by 30 to 50 percent, cut time-to-fill by half, and reduced new hire attrition by 30 percent.

Armed with insights on the traits that lead to success in a role, a company can then build tools to assess whether candidates possess these traits, and then focus on making sure they have adequate training to fill in any gaps in experience. This strategy can help applicants who may have been previously overlooked due to a lack of job experience or gap in their job history.

Startups are a source of innovation in candidate assessment, in some cases gamifying the process. One new firm created assessments to grasp how people think instead of what they know . The company is building a simulation-based recruitment assessment tool using artificial intelligence that measures a candidate’s cognitive skills and abilities using an evidence-centered and theoretically data-driven approach. This focus on process rather than pure knowledge can reduce the bias against underserved populations that is common in more traditional cognitive assessments.

So what’s the first step for a bank considering assessments to tap into unexpected talent sources? Look inward at its mission and values to ensure that new hiring processes align with both. The company should pinpoint what a good employee looks like to better assess applicants for ideal traits, use pilot assessments, track impact and refine over time to continuously improve the candidate evaluation process.

It’s also crucial to foster an inclusive environment that celebrates diversity and varied experiences is key to success. Without such an environment and a recognition of the contributions of applicants with diverse backgrounds, new employees may not feel accepted within the organization. This is even more crucial when focusing on hiring applicants with a history that is often stigmatized in the workforce.

A version of this blog post first appeared on McKinsey’s  Leadership & Organization Blog

47 case interview examples (from McKinsey, BCG, Bain, etc.)

One of the best ways to prepare for   case interviews  at firms like McKinsey, BCG, or Bain, is by studying case interview examples. 

There are a lot of free sample cases out there, but it's really hard to know where to start. So in this article, we have listed all the best free case examples available, in one place.

The below list of resources includes interactive case interview samples provided by consulting firms, video case interview demonstrations, case books, and materials developed by the team here at IGotAnOffer. Let's continue to the list.

• McKinsey examples
• BCG examples
• Bain examples
• Deloitte examples
• Other firms' examples
• Case books from consulting clubs
• Case interview preparation

Click here to practise 1-on-1 with MBB ex-interviewers

1. mckinsey case interview examples.

• Beautify case interview (McKinsey website)
• Diconsa case interview (McKinsey website)
• Electro-light case interview (McKinsey website)
• GlobaPharm case interview (McKinsey website)
• National Education case interview (McKinsey website)
• Talbot Trucks case interview (McKinsey website)
• Shops Corporation case interview (McKinsey website)
• Conservation Forever case interview (McKinsey website)
• McKinsey case interview guide (by IGotAnOffer)
• Profitability case with ex-McKinsey manager (by IGotAnOffer)
• McKinsey live case interview extract (by IGotAnOffer) - See below

2. BCG case interview examples

• Foods Inc and GenCo case samples  (BCG website)
• Chateau Boomerang written case interview  (BCG website)
• BCG case interview guide (by IGotAnOffer)
• Written cases guide (by IGotAnOffer)
• BCG live case interview with notes (by IGotAnOffer)
• BCG mock case interview with ex-BCG associate director - Public sector case (by IGotAnOffer)
• BCG mock case interview: Revenue problem case (by IGotAnOffer) - See below

3. Bain case interview examples

• CoffeeCo practice case (Bain website)
• FashionCo practice case (Bain website)
• Associate Consultant mock interview video (Bain website)
• Consultant mock interview video (Bain website)
• Written case interview tips (Bain website)
• Bain case interview guide   (by IGotAnOffer)
• Digital transformation case with ex-Bain consultant
• Bain case mock interview with ex-Bain manager (below)

4. Deloitte case interview examples

• Engagement Strategy practice case (Deloitte website)
• Recreation Unlimited practice case (Deloitte website)
• Strategic Vision practice case (Deloitte website)
• Retail Strategy practice case  (Deloitte website)
• Finance Strategy practice case  (Deloitte website)
• Talent Management practice case (Deloitte website)
• Enterprise Resource Management practice case (Deloitte website)
• Footloose written case  (by Deloitte)
• Deloitte case interview guide (by IGotAnOffer)

5. Accenture case interview examples

• Case interview workbook (by Accenture)
• Accenture case interview guide (by IGotAnOffer)

6. OC&C case interview examples

• Leisure Club case example (by OC&C)
• Imported Spirits case example (by OC&C)

7. Oliver Wyman case interview examples

• Wumbleworld case sample (Oliver Wyman website)
• Aqualine case sample (Oliver Wyman website)
• Oliver Wyman case interview guide (by IGotAnOffer)

8. A.T. Kearney case interview examples

• Promotion planning case question (A.T. Kearney website)
• Consulting case book and examples (by A.T. Kearney)
• AT Kearney case interview guide (by IGotAnOffer)

9. Strategy& / PWC case interview examples

• Presentation overview with sample questions (by Strategy& / PWC)
• Strategy& / PWC case interview guide (by IGotAnOffer)

10. L.E.K. Consulting case interview examples

• Case interview example video walkthrough   (L.E.K. website)
• Market sizing case example video walkthrough  (L.E.K. website)

11. Roland Berger case interview examples

• Transit oriented development case webinar part 1  (Roland Berger website)
• Transit oriented development case webinar part 2   (Roland Berger website)
• 3D printed hip implants case webinar part 1   (Roland Berger website)
• 3D printed hip implants case webinar part 2   (Roland Berger website)
• Roland Berger case interview guide   (by IGotAnOffer)

12. Capital One case interview examples

• Case interview example video walkthrough  (Capital One website)
• Capital One case interview guide (by IGotAnOffer)

12. EY Parthenon case interview examples

• Candidate-led case example with feedback (by IGotAnOffer)

14. Consulting clubs case interview examples

• Berkeley case book (2006)
• Columbia case book (2006)
• Darden case book (2012)
• Darden case book (2018)
• Duke case book (2010)
• Duke case book (2014)
• ESADE case book (2011)
• Goizueta case book (2006)
• Illinois case book (2015)
• LBS case book (2006)
• MIT case book (2001)
• Notre Dame case book (2017)
• Ross case book (2010)
• Wharton case book (2010)

Practice with experts

Using case interview examples is a key part of your interview preparation, but it isn’t enough.

At some point you’ll want to practise with friends or family who can give some useful feedback. However, if you really want the best possible preparation for your case interview, you'll also want to work with ex-consultants who have experience running interviews at McKinsey, Bain, BCG, etc.

If you know anyone who fits that description, fantastic! But for most of us, it's tough to find the right connections to make this happen. And it might also be difficult to practice multiple hours with that person unless you know them really well.

Here's the good news. We've already made the connections for you. We’ve created a coaching service where you can do mock case interviews 1-on-1 with ex-interviewers from MBB firms . Start scheduling sessions today!

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The Full Guide to Lateral Hiring in Investment Banking

If you're new here, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking . Thanks for visiting!

When you hear the term “lateral hiring,” your first thought might be:

“Aha! A way to break into investment banking from another career – without an expensive MBA program – or a way to trade up to a larger bank and get better exit opportunities.”

While those are both possibilities, they are not sure things.

In contrast to the summer internship recruiting process , the lateral hiring process at banks is random, unstructured, and difficult to describe.

If you can deal with a lot of uncertainty, you could win offers through lateral hiring.

But if not, you could easily go down the rabbit hole of applying to dozens of firms and never hearing back :

What is Lateral Hiring and Why Does It Matter?

Definition: Lateral hiring refers to the process banks use to recruit candidates with some amount of full-time work experience, often in investment banking elsewhere, but also in related fields such as valuation, corporate banking, and transaction services – rather than recruiting students directly out of undergraduate, Master’s, or MBA programs.

Most lateral hiring happens at the Analyst level ; there is some amount for Associates (and up), but it’s more limited.

Quite a few Managing Directors and senior bankers also switch banks, but we’re focusing on Analyst-level recruiting here.

To have a good chance of winning a lateral offer, you must be in a closely related field because banks want you to start contributing immediately on Day 1 without any training.

Banks give most of their full-time offers to interns who performed well …

…but the turnover rate in investment banking is extremely high: many full-time Analysts quit before their first year ends.

If someone quits in the middle of the year, the bank must find a replacement ASAP.

That explains why lateral hiring exists at all: if everyone stayed for 2-3 years and left at predictable times, banks wouldn’t bother.

As banks keep accelerating the recruiting process for undergrads , lateral hiring has become increasingly important because it’s easy to miss the entire process.

If that happens, you can use lateral hiring to avoid an expensive MBA program or a Master’s in Finance degree …

… if certain conditions are true.

Why Make a Lateral Move?

The root motivations are usually money and exit opportunities.

If you’re a recent grad and you work outside of IB, you will probably earn more in banking in ~95% of cases.

You’ll also gain access to exit opportunities , such as private equity , hedge funds , and corporate development, that are difficult to break into from most other industries.

And if you’re already in IB, you’ll probably earn a higher bonus and gain access to larger buy-side firms at bigger banks.

Why Not Make a Lateral Move?

There are also some bad reasons to start the lateral recruiting process, such as:

• Group Conflicts / Internal Politics – Just switch teams at your current bank.
• You Want to Cover a Different Industry – If you’re in a group such as FIG or Real Estate , and you want something less specialized, it’s much easier to switch groups instead. The same goes for capital markets vs. M&A or industry teams.
• You Want to Switch Locations – Again, it’s much easier to move around internally.

A few specific moves are also a bit pointless:

• Bulge Bracket to Elite Boutique, or Elite Boutique to Bulge Bracket – I’m not sure why you’d do this at the Analyst level. This one might make more sense for senior bankers.
• Bulge Bracket to Bulge Bracket – See above. Maybe this one makes sense if you’re at one of the “lower-ranked” BBs in a less-than-ideal group ( ECM or DCM ), and you want to move to a higher-ranked bank and a better group at the same time.

If you’re going to take the time and effort to make a lateral move, make sure it’s a significant jump – boutique to middle market , or middle market to bulge bracket (for example).

Who is “Eligible” for Lateral Hiring?

If you’re already working in investment banking at any level, you can move to another bank… pretty much whenever you want to start the process.

But if not, eligibility for lateral moves depends on:

• How many years you’ve been out of your undergrad or Master’s program.
• How closely related your current job is to investment banking.

With the first point, it gets much harder to break in once you’ve been working in another industry for more than 2-3 years .

You’ll be over-qualified for Analyst roles, but banks won’t hire you directly for Associate roles, so you’ll have to do an MBA at that point.

With the second point, you need to be in a closely related field to have a good chance.

For example:

• Big 4 Valuation Transaction Services – Doable.
• Independent Valuation Firm – Doable.
• Corporate Banking – Doable… for certain groups.
• Corporate Development – Doable, but few people win CD roles without IB first.
• Corporate Finance / FP&A – Doable, but more difficult because you don’t work on deals.

Even something like audit is too removed to make a direct jump – you would need a steppingstone role, such as one of the ones above, in that case.

It can even be quite difficult to move in from other divisions at a bank, such as asset management, wealth management, or sales & trading, because you don’t work on deals (for more, see our coverage of wealth management vs. investment banking ).

Of those, sales & trading to investment banking is the most viable move, but only if you act quickly and have deal-like experience.

Some of these transitions are group-dependent as well.

For example, you could probably move from credit risk or corporate banking to DCM, but M&A or industry groups would be more difficult.

The same goes for investor relations to ECM or anything in commercial real estate to real estate investment banking.

If your current job is significantly different, such as marketing, engineering, or non-profit fundraising, then you will need a major shift (MBA, MSF, or very different job) to break in.

The #1 question you need to ask yourself is, “How long will this entire transition process take?”

If the process takes at least 3-4 years, you’re not going to win IB Analyst roles, so you’re better off applying to top business schools and using MBA-level recruiting to break in.

One final note: in some emerging markets, the process is less structured, so you might be able to move directly from fields like accounting/audit into investment banking.

How Much Can You “Level Up” with Lateral Hiring?

If you’re not currently in investment banking, you are probably not going to win a job offer at a bulge bracket or elite boutique bank .

But I have seen plenty of career changers win offers at regional boutiques, industry-specific boutiques, and middle market banks.

Within IB, it’s feasible to go from a boutique to a middle market bank, or a middle market bank to an elite boutique or bulge bracket.

But you’re probably not going to move from an unknown 10-person boutique in the Middle of Nowhere directly to GS, MS, or JPM in New York.

Location can also be a major issue: it tends to be much easier to move to financial centers such as New York and London because those places have far higher turnover .

International moves can also be quite difficult, especially if you have visa issues (e.g., you want to work in the U.S., but you’re not a citizen or green card holder).

You’re almost always better off transferring internally to do that.

Remember that lateral slots open up when people leave unexpectedly; banks don’t want to spend months on paperwork when they need to hire you ASAP.

Process Timing: When Do Lateral Spots Open Up?

The common thinking used to be that lateral spots opened up in June and July as bonuses were paid out and people switched banks, moved to the buy-side, or quit finance.

But then most banks started to award Analyst bonuses on a year-end schedule to match senior bankers, so this rule broke down a bit.

However, it was never much of a “rule” to begin with because people often quit banking unexpectedly in the middle of the year.

Yes, some Analysts are motivated to stay to collect their bonus, but if they hate the job so much that they want to die , they’re not going to stick around for 6-9 months to earn $50-$60K.

To find openings, your best bet is to search sites like Indeed and LinkedIn and set alerts whenever an “Investment Banking Analyst” role pops up in your region.

The important part here is not so much the “timing” of these spots opening up, but rather the timing of your own work experience : when you started, how long you’ve been there, and what you’ve done so far.

For example, if you just started working at a boutique bank 1-2 months ago, and now you want to move to a larger bank, very few bankers will take you seriously.

That’s not enough time to gain significant deal or client experience, as nearly all M&A deals many months (or years!) to execute.

You’ll probably need more like 6-12 months of experience in your current role to start networking and interviewing for other jobs.

If you’re in investment banking at a smaller firm, that should give you enough time to work on 1-2 solid deals, even if they’re still ongoing when you start recruiting.

And if you’re in another field, that should give you enough time to get the experience that you can spin into sounding like deals .

How Do You Get Started with the Lateral Hiring Process?

Before doing anything, you need to get your resume in order.

If you’re already in investment banking, take a look at our private equity resume template and tutorial .

Yes, it’s for “private equity,” but the same principles apply when you’re aiming for any deal-based role (IB, PE, CD, VC, etc.).

If you’re in some other field, you should take your experience and spin it into sounding like deals.

This will be easier for roles such as Big 4 Transaction Services, valuation, and corporate development because… you do work on deals, or at least with clients.

The main difference is that you’ll have to make it sound like you worked on deals from start to finish, or that you had knowledge of the entire process from start to finish.

Corporate finance roles at normal companies are trickier because you do not work on deals in those.

My advice is to take some of your projects – internal financial projections, presentations to management, forecasting the cash requirements, etc. – and turn them into “deals.”

If you can link your work to the company’s overall results, that’s a good start.

Once you have your resume, you need to come up with your story and start applying.

Your story should not be difficult if you’ve read our coverage of how to walk through your resume .

If you’re switching banks, it can be some variant of: “I want to work on more of Deal Type X, which your firm does, but which mine does not.”

If you’re switching industries, make it about wanting to work on deals from start to finish, or about advising many companies rather than just staying at a single company and working on internal deals or forecasting there.

After your story is set, you can apply to online job postings on sites like Indeed and LinkedIn, but networking + applying online is always more effective than just applying online.

One strategy might be to revive the contacts you made in your networking efforts from university, send them an update, and casually ask about open positions at their firms.

If you’ve been out of touch for only a year or two, you can send a quick email; if it has been longer than that, you might need to “warm them up” a bit first.

Headhunters are rarely effective in this lateral hiring process because:

• If you’re a career-changer, headhunters will ignore you because they think you have a low probability of success.
• If you’re already in IB, you can reach out via cold emails, apply to online job postings, and get responses like that.

If you have to write a cold email to someone, you could use the following template:

SUBJECT: Experienced Analyst Position – [Bank Name]

“ [Banker Name] ,

My name is [Your Name] , and I’m currently a First-Year Analyst at [Bank / Company Name] in the [Group Name] group. I recently applied to the Experienced Analyst position in [City Name] that [Banker’s Bank] posted on [Job Site Name] , and I wanted to find out more about the role.

I saw that you worked at [Banker’s Bank] in [City Name] , and I wondered if you might have a few minutes to speak on the phone and provide additional details on your group. I am available on Monday – Wednesday next week between 1 PM and 4 PM [Time Zone] . Thanks for your time – I really appreciate it.

Best regards,

[Your Name] ”

If you get a “quick hit,” you might start the interview process right away.

If not, you might have to persist with your networking for weeks or months until something turns up.

As mentioned above, though, the turnover rate at banks is very high .

If you have been networking for months and months, you’ve turned up nothing, and there’s no economic crisis, recession, or market crash taking place, then it’s very likely that you’re doing something wrong (see the bottom section of this article).

What to Expect as the Hiring Process Moves Along

The lateral hiring process is unstructured, so interviews could drag on for weeks or months depending on the firm and group – or you could win an offer in a matter of days.

Part of the problem is that it’s tough to define a true “hiring need” in many groups.

For example, if an under-performing Analyst suddenly quits, does the group really need to hire a new one ASAP?

Probably not, but they may want to hire one “soon” just in case someone else quits.

Even if this group starts recruiting, they may be slow to respond and schedule interviews because it’s not their top priority.

You should expect that it will take a few months to go through the process, and possibly more like 6-12 months to win an offer somewhere.

In the process itself, banks tend not to use HireVue interviews or online tests.

Instead, you can expect:

• One or two phone interviews.
• A Superday , or a series of interviews with more senior bankers spread over several weeks.
• And there’s a decent chance you’ll get a modeling test or case study as well, such as the sample 3-statement modeling test on this site.

They will still ask “fit” and technical questions, but your deal experience is also incredibly important.

If you don’t know the details of each deal you listed on your resume/CV – buyer and seller’s financials, relevant multiples, transaction rationale, and how you contributed – you’re not going to make it very far.

If you’re moving from a boutique to a middle market bank, interviewers often focus more on fit because they want to make sure you’ll thrive in a new environment.

But if you’re moving to a bulge bracket or elite boutique bank, the focus is often technical because bankers assume that you’ll have less modeling experience, coming from a smaller firm.

If you’re moving in from another industry, expect even more of that.

Even if the group has a hiring need, you may not hear back quickly, so you need to keep following up and checking on your status.

How Do Lateral Offers Work?

If you make it through the entire process and win a lateral offer, you can expect the following:

• You will probably “lose a year” if you’re switching levels (boutique to MM or MM to BB/EB) – so if you’re a First-Year Analyst now, you’ll start over as a First-Year Analyst.
• Base salaries are fairly standardized at mid-sized and larger banks, so you should earn the market rate. The same goes for bonuses – there are standard levels, and your bonus will depend on the market, fees generated, and your performance.
• You may get a signing bonus , but don’t count on it – it’s not in banks’ interest to award signing bonuses because doing so encourages people to hop around like rabbits. If you don’t see it in the offer letter, you can ask, but don’t press the issue too hard.
• You may get a relocation package if you’re switching cities, especially if the distance is significant (e.g., LA to NY or Hong Kong to London).
• You will probably have to give up the bonus you’ve accrued so far at your original firm, especially if you leave a few months into the calendar year.

A long time ago, people thought that “losing a year” was terrible.

But as of 2020, this is often a benefit if you’re switching banks specifically to recruit for private equity roles .

Since PE recruiting keeps moving up, you want as much time as possible so you can walk into interviews with more deal experience.

What If You Don’t Win a Lateral Offer?

If you go through this entire process and come away with no offers, you need to reflect and ask, “What happened?”

For example, did you not win any interviews (or enough interviews)?

If this is the case, then maybe your work experience wasn’t close enough to IB for you to be a competitive candidate – or maybe you did not use an effective networking strategy.

Or, if you did win interviews, did you perform poorly in them? If so, why?

Were your technical weak? It’s not rocket science – anyone can master these questions with enough preparation and practice time and the right interview guide .

Did you not have enough deal or client experience? Maybe you need to stay in your current role for more time and try again.

The tricky thing about lateral hiring is that even if you can fix some of these issues, you may not have time to do so if you’re moving into IB as a career-changer.

For example, let’s say you’ve already been working for two years at a Big 4 firm.

You went through this process but came away with no offers and only a few interviews.

If you need more deal experience or more technical preparation, and either one will cost you ~6 months, pushing you to 2.5 years in your current role, it will become more difficult to win Analyst roles.

You could still do it, but the odds start tipping against you past the 2-3-year mark.

If that’s you, then it may be time to consider an MBA program instead.

The window for getting into IB is relatively narrow, and the longer you wait, the more likely it is to close suddenly.

Lateral hiring can be a very effective way to make a career change – as long as you act quickly and don’t let that window slam down on your face while you’re jumping out of it.

For Further Reading

• From Regional Audit to Investment Banking: How to Break in *Without* the Big 4 Pedigree
• From Valuation Advisory to Investment Banking: How to Make the Lateral Leap
• How to Cold Email for an Internship: Investment Banking Cold Email Templates and Guide
• M&A Investment Banking: The Best Group Ever?
• How to Move from Accounting to Investment Banking and Leave the Audits Behind Forever
• From Wealth Management to Investment Banking : How to Make the Leap

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street . In his spare time, he enjoys lifting weights, running, traveling, obsessively watching TV shows, and defeating Sauron.

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51 thoughts on “ The Full Guide to Lateral Hiring in Investment Banking ”

How is internal lateraling from sophomore to junior internships? Say from a sophomore S&T position to a junior IB role?

Not sure offhand because most people tend to stick with one path once they have an initial internship lined up. You’d probably have some advantage doing this because the bank already knows you, and at least one division can vouch for you, but I’m not sure it would be a huge advantage because you’ll still have to go through the entire IB recruiting cycle once again.

Hi Brian, I am a corporate banking credit analyst in a multinationals group at a large bank. They are looking to expand fast in their US investment banking business and I want to lateral into an IB group. I work on rating clients and corporate banking deals currently. I am wondering how I can attempt a lateral in my firm without making my current team upset? I am also wondering what level of transparency is necessary and how I can approach finding leads within the IB groups at my bank? How can I spin current corporate banking deal rating experience into an IB position. I also have modeling experience from my rating role, but where should I refine those skills for an IB role? Thank you so much for any insights you can give me!

There isn’t really anyway to transfer internally without upsetting your current team on some level. You can start by looking up people who work in IB at your firm on LinkedIn and then contacting them via your internal email system and see where that goes. I would not notify your team until later in the process.

For spinning corporate banking experience, you can talk about the parts that transfer into IB roles as well, such as your experience reviewing financials, looking at credit stats/ratios, reviewing recent issuances, etc. If you want to learn more, there are plenty of options (see our courses) ranging from in-person to online courses to books and textbooks. It just depends on your preferred learning style and how much time you have.

Hi Bryan, I’m a T2 consultant in NYC focused on CDD/Value Creation work. I have been working for 2 months and I never knew what IB was until I started working in NYC (not from a finance background or area) and want to go into it now. I was thinking about networking with BB/EB firms to try and lateral but you said it’s probably not likely to get in if you didn’t start out in IB. If I ultimately want to work for a BB/EB, should I just focus on a GMAT and get an MBA or is it worth it to network with them and do my best to win an offer these next 6-24 months? Thank you.

If you only have 2 months of work experience, you should be able to network your way into a lateral role in IB in most cases. It’s usually best to target a move after about 1 year of full-time work. I wouldn’t bother with an MBA unless you get nowhere via networking and preparing on your own.

Hi Brian, I am Bangladeshi. I already did a MBA from my country. Right now i am working in Marketing At MNC. I want to switch my career and want to go in investment banking analyst position in london, france, germany. My Age is 27. do you think i have any chance to get investment banking analyst position in europe or london region. I am intending to do msc finance in germany,london,france. do you think i have any chance in IB Europe Region or London.

I don’t know if there’s any precedent for people doing an MBA and then an Msc, sorry. I think you would get a lot of questions about your career path, but it might be possible if you spin it the right way and get into one of the top European programs.

So i am thinking to do MSF in ESCP or HEC then i want to work in Investment Bank in Europe region. My final goal is winning PE role. Do you think i have any chance? or there is another way to achieve my final destination.

I think you could probably do it, assuming you can win admission to one of those schools, but you may not be competitive at the biggest banks/PE firms.

Hi Brian, I wonder if you had any advice on where to look for lateral postings. Is networking the best way to find out about opportunities? I know LinkedIn is one option, but I’m not sure if all the postings show up on LinkedIn. For context, I’m already in IB so I’d assume a lateral shift for me would be easier, but just wondering about how I would go about finding the opportunities. Appreciate the response.

Networking is the best method. LinkedIn and other job boards can work, but more to figure out which firms/groups might be hiring (and then you go and contact people there independently once you’ve found some groups in that category). You could message people over LinkedIn, but response rates are sometimes slower/lower, especially for senior bankers. Email works well, but only if you can send out good, personalized messages that don’t look AI-generated content or spam…

Hi Brian. How hard do you think the lateral move to IB in MM/BB will be from being in credit risk role where you sit sometimes with IB teams in the same deals but focus on the credit aspect? We mostly underwrite typical bank debt and work w/ companies up to >1B in EV, think small cap. Context: my team covers middle markets at a top BB in a coverage group (think HC/Tech: VC/PE deals) where we do variety of originations within bank debt and also TLBs. Just curious on your thoughts in terms of what I would be getting called out for in the deal explanation given my team sometimes runs and tweaks the models for originating the bank debt for capital structure.

It’s possible, but probably not the easiest move because they’ll question how much you know about valuation and modeling outside of credit modeling. If you work with IB teams on the same deals, it’s worth a shot. But if you don’t get good traction after, say, 6 months, maybe focus on corporate banking roles instead or find more of a valuation-related role first. They will probably ask about these issues as well as your knowledge of the entire deal process, if you can run a deal from start to finish, etc.

I’m currently at a Big 5 bank in Toronto in IB and I eventually want to move to the US at a BB / EB. How difficult of a process do you think that would be? I know most of this article is based on lateraling to “break into” investment banking, but I’m already in the industry. So I presume the process would be slightly easier for me. Do you think it would make more sense for me to internally transfer to the US first (the Big 5 I’m at has a decent IB presence in NYC) and then consider switching banks? Do you think networking would be essential or can I get by with just applying online? I went to a top target in Canada so I do have a decent network to tap into, I’m just not the greatest at networking.

Appreciate the response.

It’s usually easier to move from Canada to the U.S. than from other countries because of the TN-1 visa. If your current firm has a decent presence in NYC, I would recommend asking about the switch internally first and reaching out to people in the NY office. Networking helps but may not be essential. I don’t think it’s worthwhile to switch firms in this case because you don’t want to end up working at potentially a firm with a worse presence in Canada just to eventually switch countries.

Thanks for the response Brian. That’s a good point you make. I was initially thinking about moving to a BB/EB in Canada just to lateral across the border through some internal mobility program. But yea, most of them don’t have the greatest presence in Canada (exception being BofA and Barclays).

I graduated last year from a Masters degree at a world top university and have done M&A internships at a regional boutique investment bank and MM bank. I am having serious hard times (probably is due to the current market environment) to find an internship or full time job in a BB or MM bank. Do you think it would be better for me to start an Analyst position in a small-cap boutique investment bank and then try to lateral hire to a bigger bank or to go with an internship position at a BB or well-know bank (with the risk of not getting a return offer)? Also, should I consider switching to a Big 4/Corporate Development? Thank you.

It’s always better to have a current full-time job than to be looking for one or still pursuing internships. So I would recommend the Analyst role at the small-cap boutique IB if you have an offer there. You can always move to a larger bank later on when the market improves. I would only do Big 4 / CD if you really cannot find anything even remotely related to IB, even at smaller firms.

I hope that this message finds you well. Thanks for taking the time to share your insights regarding the lateral process with us! Currently, I’m a graduating senior who is about to graduate and start at a BB in a regional tier 3 location. However, I would like to internal transfer to the NYC office of my BB as I have lived in NYC all my life. I had a couple of questions that I would greatly appreciate your insights on.

Firstly, to maximize my odds of being able to work in NYC, do you think I should primarily focus on internally transferring to NYC within my BB or just apply to other banks in NYC after a year or so on the job?

Secondly, typically how long after starting Full-time should I communicate to my manager about internal transferring to the NYC office? I was hoping to do this after 1 year but not sure if that is too short a timeframe.

Lastly, given that I still have some time before I start full-time, do you think it would be a good idea to apply to other banks right now for full-time 2023 analyst positions in NYC and renege on my current BB offer? Or should I just wait for the internal transfer process to NYC after a year on the job?

Thanks so much, Brian! Always love and appreciate your content and insights!

Focus on transferring within your bank. Yes, aim to do it after about a year.

I’m not sure if you’re serious about your last question, but it’s a bad idea to apply for full-time 2023 analyst positions in NY in the current market environment.

Even in a normal year, there isn’t much FT hiring outside of intern classes, and in this year, with dead capital markets, an energy crisis, a recession, inflation, etc., hiring will be even more muted. A few banks here and there might hire people, but it is not at all worth possibly giving up your current signed offer at a large bank just for the chance at an incrementally better offer. I wouldn’t even bother interviewing around just on the off chance that someone will find out and tell your current bank about it.

Thanks so much for your reply and insights! That makes sense and I will try to focus on internal transfer opportunities within my bank.

From your experience/perspective, generally speaking, how difficult do you think it is to transfer locations after a year at a BB?

Secondly, for successful internal/location transfers, is it essentially all about focusing networking efforts with the target location/office and then basically asking them for an opportunity to move over after some time?

Thanks so much!

It depends completely on the hiring environment and which industries are doing well and which are not. But if you’ve performed well, it is usually not difficult to change locations. You should get to know people in the target office, but you also need a strong advocate in your current group who will recommend you and push for the transfer, as you’ll have to ask your current group about it first.

Hi Brian – thanks for all the content in this site – finding it really useful. I’m at PwC currently but have been on the Deals/Management Consulting grad scheme for 20 monts now, and I haven’t done any Big 4 corporate finance/vals work. I’ve passed my CFA Level 1 and try to maintain relatively high level of technical capabilities by practising DCF etc. and have done DD’s and operational aspects to deals, but is the only realistic way for me to move into IB by going for entry level grad schemes and starting fresh again? (I am also UK based if that makes a difference). I also wondered what you think the best way to approach the ‘networking’ part is – I feel big institutions don’t just have their relevant people for getting hired upfront on the careers page and I don’t tend to get any traction messaging people cold via Linkedin.

You don’t necessarily need to start at the entry level, but you do need to gain some deal or client experience to move over. So try to join the internal corporate finance or valuations group or something like that. Banks are willing to bring you over at a slightly higher level if you have relevant experience.

With networking, you should target informational interviews and request them via email after looking up people on LinkedIn… response rates to messages there are low, so try LinkedIn instead and ask for career advice rather than directly about the job (at least at first).

Hi Brian, what would you recommend for technical prep for current IB analysts trying to move from MM to BB / EB banks? Thanks in advance.

Use the guides and courses on this site, or if you do not have them or cannot afford anything, the free content in the YouTube channel.

Hi Brian, I am an international student who recently graduated from a west coast target school and worked with a MM Consumer Group over the summer. I received a return offer and signed it right after my internship ended. However, 4 months later, I received a call from HR that the offer might be rescinded. I am not sure about how to proceed with recruiting now – which banks should I target? should I focus on NYC and SF? How should I best go about my story?

What does “might be rescinded” mean? I think you need more of a confirmation to do anything here. If they do rescind it, maybe go back to your contacts and start networking with MM and boutique banks. I don’t even know that location matters currently, but sure, you can use those places to narrow the search a bit.

Appreciate you taking the time time to respond to this thread. I am moving to the US from the Middle East next year (have greencard) and I am trying to weigh my chances of breaking into IB (BB/EB/MM). I understand the limitation of breaking into a top group in a BB, but what about EB and MM?

I am an INSEAD MBA (not sure you know it, considered M7 Europe equivalent) and a CFA L1 currently studying for CFA L2. I have worked as an associate at a regional MENA focused M&A investment banking boutique for a year and currently work as an investment associate in PE investing growth equity in the levant area (coming onto two years). Prior to that I was in corporate development/M&A for a large construction firm in MENA as well. I used the MBA to switch careers into banking.

What do you think my chances of breaking in are? namely, INSEAD’s reputation on the street and how I will be perceived, whether my experience would be considered subpar given its from the Middle East and with less known firms to US based Investment banks and lastly, whether it would matter if I am 32 years old? sometime I worry how I will be perceived applying for Associate roles.

Lastly, I would appreciate it if you can comment also on the best cities in the US for investment banking and PE

I think you can potentially do it, but INSEAD is not as well-known in the US, so that is one limitation. Also, you’ll have to find some group that does a lot of deals or client work in the MENA region to have the best chance (otherwise, you don’t have an advantage over local candidates). But I think it’s doable, especially if the bank doesn’t need to sponsor you.

Hard to say what the best cities are currently because NYC is collapsing and everyone is leaving, and everyone is still working remotely… so, who knows. NYC used to be the center, with Chicago and SF right behind, but they’re all likely to be wastelands in 5-10 years.

Hey Brian, I’m an IR analyst in NYC (at a company where mid-cap companies outsource their IR duties to us) with 1 year experience out of college (semi target) , and I was wondering if you think IR is a good career to transfer into IBD boutiques (ECM?) or if there are any other exit opportunities I should pursue. My duties include talking to management, ER analysts, helping them with their models, talking to large investors. I saw the post on IR btw, great stuff but didn’t touch on exits. Would love to know what you think about the IR industry and how to lateral out if possible or if you have seen it. Any input is much appreciated! Also is a CFA needed or passing level 1?

IR is potentially good if you can find an ECM-focused boutique, but isn’t the best area for M&A, LevFin, etc. It might potentially work for ER as well, but that might be tougher if you don’t have the modeling skills. Other common exits might be joining the fundraising or placements team at a financial sponsor.

I don’t think you need the CFA for IB or ER roles, but it might be helpful if you apply for investing roles at hedge funds or asset management firms. I don’t have much information or many examples of transitioning out of IR, but your best bet is probably something like the ECM team at a mid-sized bank or an ECM or private placement boutique.

Hi Brian Thanks for the article. It is very helpful. Just have 2 quick questions: 1) If you wish to move to a different group within the same bank, how to achieve that? It sounds very tricky. Do you start talking with that group and wait until they have offered you a place, and only after then, you start informing your current manager? Or do you start consulting with your current manager right in the beginning? (Just afraid that it can leave bad impression on both sides and the original group do not like you any more if the lateral failed) 2) If you wish to lateral to another firm, how to make sure that your current firm do not find out?

1) It’s probably better to start talking with your current manager first to make sure they know your plans. It’s not as sensitive as quitting and joining another bank, so sometimes they’ll even help you move if it makes them look better in some way.

2) There’s no way to ensure that your current firm does not find out. People talk, emails get forwarded, and word of people moving gets out. All you can really do is use a different, non-work email address and avoid telling anyone else what you’re doing or even that you’re interviewing elsewhere.

Hi Brian Thanks for your reply. How does move to another group make your current manager look good in some way? For how many months should you have worked in your current role before moving to a different group?

Usually you want to stay in one team for about a year before moving somewhere else. The manager can look good if you switch teams and perform well in the other team.

Hi Brian, Thank you for your content! Could you touch upon how to transfer internally between geographies? When is the earliest I should initiate and who should I talk to?

A year into the job is usually the earliest you should consider switching. The best way to do it is to start speaking with junior bankers in other geographies, get referrals to the more senior bankers, and then ask one of them directly about a transfer. You usually need to be in good graces with your current group + have the other one push for the transfer to make it happen.

Hello, I am a long-time follower of the site and love the material. I have a few questions which I would like some clarity on if you can. Firstly, you mentioned a closely related field such as Corporate Banking. I’ve read the related article and I feel like that option should be replaced with DCM since I feel there’s enough overlap and since DCM is a traditional IBD role that it would be a closer jump into M&A. Secondly, with many banks combining ECM & DCM into one division (Capital Markets). The combination of the two would be a good stepping stone front office role into M&A. Bigger than Sales & Trading, Wealth Management, Research, Asset Management. I’m not someone in the Industry and my questions are speculative as this is a topic that greatly interests me. Thank you for this site!

I’m not really sure what you’re asking. Corporate banking is closely related to IB, and DCM is a group within IB that’s very close to corporate banking. I don’t think you’re likely to go from corporate banking to M&A directly if that’s what you’re asking. You could move in from ECM or DCM, though.

I am currently with a boutique who lacked the in training me to excel in financial modeling. Any suggestions to prepare me going into applying to lateral?

I mean, I hate to sound self-promotional, but we have training course in Excel and financial modeling ( https://breakingintowallstreet.com/biws/breaking-into-wall-street-courses/ ). There are plenty of options on sites like Udemy as well; it just depends on what you want. We don’t compete on price, but rather on quality, consistent updates over time, and support.

When you say that it can take 6-12 months to win an offer, do you mean that it can take that long from the time you apply? Or do you mean from the time you begin networking, studying technicals, etc? That sounds like a very long time to wait after submitting an application.

As a follow up to this, does it look bad if you lateral too many times? Say you lateraled once after a year on a job and then tried to lateral to a better bank after another year?

It depends on your explanation for doing so. If you switched banks several times within a few years, all in IB roles, solely to move to “better banks,” yes, it looks bad and people will question you on it. If you have some amazing explanation other than “better banks!” you might be able to explain your way out of it, but such explanations are tough to find.

On the other hand, if you switched groups/industries several times, such as audit to Big 4 TS or corporate banking to IB, that’s easier to explain because you can state that your goal was IB all along, but you had to do something more relevant first to get in.

That’s from the time you begin networking, studying, and preparing. If you wait that long after applying or after the first interview, you should just move on because the firm isn’t interested, changed its plans, or something else happened.

Hi Brian, thanks for the article.

I’m just wondering, in your opinion, what you think the outlook for lateral hiring is in 2020 given the current economic situation? I’m asking because I went to an elite target school but decided on investment banking late in my academic career so I took a position at a small regional boutique (similar to the situation above).

Unfortunately, I think it will be down for the year because deal activity is down so far, the coronavirus is tanking markets and the real economy, etc., and no one knows when things will calm down. Lateral spots will still open up because Analysts will still leave early for buy-side/other roles, but I think we’ll see fewer people just quitting out of frustration or despair without something else lined up.

Hi Brian, I appreciate you delving deeper into lateraling as I found it really helpful!

I’m at a really awkward spot right now. Being an analyst at a no-name (one-person M&A boutique) shop for 2.5 years has been rather challenging for me to make the jump. I tried lateraling to MM shops and it wasn’t more about my technicals as I had no problem via phone screens and superdays but I got passed over by Big 4, corporate finance (think Duff & Phelps), and from other relevant industry boutique shops. I was told they were afraid of whether the firm was legit/credible yet the founder has a great track record running IB departments, and we close 2-3 deals a year. Now I’m going downstream trying to get into any shop be it boutique or MM and I’m getting outright ignored through my cold-emailing outreach. My story makes sense and I tailor my message accordingly to each firm and individual. I was told to go back and get a reputable brand on my resume (think corp dev at F500 company or apply to an FP&A program). At this point I thought I would have a shot from here and now I’m kind of freaking out. Lateral analyst hiring isn’t ramping up as it was last year. Thanks so much for your help!

That is a tough one. But yes, I think it’s probably because bankers may be skeptical of the name/reputation of your current firm. If your outreach to other banks is not working, then other options at this point include:

1) Aim for corporate development at a Fortune 500 company, or even something like Big 4 valuation/TS/corporate finance. Even outside the Big 4, something at a decently well-known firm in one of those areas will give you a boost.

2) Business school. If you can get into a top program, you should be able to move to a larger bank fairly easily (but obviously huge time/expense downsides here).

3) Maybe a Master’s in Finance degree if you attended a non-target undergrad – again, a top program should give you access to bigger firms.

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Case Study: Will a Bank’s New Technology Help or Hurt Morale?

• Leonard A. Schlesinger

A CEO weighs the growth benefits of AI against the downsides of impersonal decision making.

Beth Daniels, the CEO of Michigan’s Vanir Bancorp, sat silent as her chief human resources officer and chief financial officer traded jabs. The trio had founded their community bank three years earlier with the mission of serving small-business owners, particularly those on the lower end of the credit spectrum. After getting a start-up off the ground in a mature, heavily regulated industry, they were a tight-knit, battle-tested team. But the current meeting was turning into a civil war.

• Leonard A. Schlesinger is the Baker Foundation Professor at Harvard Business School, where he serves as chair of its practice-based faculty.

Partner Center

Skills-based success: 10 recruiting case studies

The working world has been turned on its head with the pandemic, the Great Reshuffle, and the resulting skills shortage. Companies are searching for a powerful, sustainable way to recruit and retain talent, and 81% of them are now opting for skills-based hiring practices.

Skills-based recruitment practices are for everyone. Don’t believe us? We've put together 10 recruiting case studies that demonstrate how different individuals, industries, and regions have successfully implemented skills-based hiring.

Table of contents

What's the purpose of a recruiting case study, 3 personal recruiting case studies, 3 recruiting case studies by industry, 4 recruiting case studies by region, looking for more recruiting case studies, the state of skills-based hiring 2024.

Read TestGorilla's annual report to discover why over 81% of companies are choosing to adopt skills-based hiring methods in 2024.

In recruitment, case studies are helpful tools for employers seeking to build, develop, or optimize their recruitment processes. They can be great sources of information and inspiration. By understanding the successes and failures others have had with their hiring processes, hiring managers can take any relevant learnings without having to make the same mistakes that others have.

To make these recruiting case studies relevant for as many people as possible, we've divided them into personal case studies, case studies by industry, and case studies by region. Let's dive in.

Let’s first look at the personal stories of some stellar individuals who were recruited into their ideal industries using skills-based practices. These people didn’t have traditional backgrounds, but because of their unique skills, they got into amazing roles. All that was needed was a chance to prove those skills during recruitment.

1. Justin Hutchinson

Justin Hutchinson wanted a future in football, but he was faced with a hard choice at age 14: Focus on his career prospects or take care of his father with cancer.

Justin, of course, chose his father and has never regretted that choice, but it did mean giving up the chance of achieving his dream job.

After his father’s passing, Justin attended a community college to fulfill his father’s wish for him to get a degree. To pay rent and living expenses, Justin got a job at a smoothie franchise.

His aim was to simply support his cost of living by making fast food – but it turns out Justin’s real skill was people and communication.

Justin would study the cars that drove up, memorize their orders, and have them ready so he could spend time talking and getting to know the customers instead of making drinks.

One of Justin’s customers was a chief executive of a marketing company and was so impressed with his people skills, he offered Justin an internship.

It wasn’t long before Justin used his soft skills to turn that internship into a full-time position. He dropped out of college, poured his heart and soul into the role, and attained the role of Director of Business Development.

Justin attributes his success to his best skills:

Workplace empathy

Strategic and critical thinking

Sales management

Justin didn’t have a typical marketing background – his experience was a partial college education with no degree, on-the-job experience (and not a traditionally “relevant” job), and his internship.

Not everyone can find the perfect marketer in a charismatic smoothie server, but online skills testing holds the same principles: Look at abilities first and ask questions later.

Sales and marketing are industries that are uniquely dependent on soft skills, which makes skills-based hiring an obvious choice for recruiting. For information on how it helps with the tricky subject of ramp time, read our article on skills-based hiring and ramp time.

2. Latisha Carter

Latisha Carter had a dream of excelling in corporate America, but she never got the opportunity to attend college.

At age 17, Latisha became a single mother. This put her dreams of college on hiatus for the foreseeable future.

Three years later, after having another child, Latisha got a job as a nursing assistant. But she still couldn’t shake her desire to make it in the corporate world.

She secured a call center job with NCR, a software company, driven by their offer of extensive employee training. 

Offering extensive upskilling and reskilling is one of the best things you can put on the table for potential candidates. A study by Lorman showed that 59% of Millennials believe that development opportunities are extremely important when deciding whether to apply for a position.

Latisha used her experience at NCR to get a role in customer service at the software company Sage.

With determination and hard work, she continued to work her way up for 20 years until she became a director at Xero, an accounting technology company.

Latisha is now proudly a director in corporate America with no college degree. Her company is reaping the benefits of her presence and skills. 

In the second half of 2021, Xero’s approach to skills-based hiring and its emphasis on diversity pushed a 7% increase in racial and ethnic diversity.

Jana Galbraith, the executive general manager for people experience partnering for Xero, says: “ [H]istorically, hiring based on degree exclusively has perpetuated discrimination .”

This boost is great news for Xero because the benefits of diversity are broad and include increased productivity, innovation, and financial performance.

Latisha’s struggle to succeed is unfortunately common for working mothers. To learn more about this, read our article on the motherhood penalty .

3. Cindy Veach

Cindy Veach didn’t have a traditional background. She had all the tech know-how, but she only had experience involving massage therapy and social services.

But she had the skills and she knew it. Cindy says it was a happenstance that she stumbled upon her perfect role; she just wanted a role where she could use her best talents.

“I was looking for jobs I had the right skills for, organizational skills in particular,” said Cindy.

She happened upon a tech administration apprenticeship program at IBM. Before then, she saw her tech skills as just a hobby and never imagined herself in the tech industry – but she applied and was accepted.

Cindy had a steep learning curve ahead of her. She possessed the base tech skills but needed the training to reach the right level.

She attributes much of her success to the flexibility of her mentors. They continually told her that if a path “didn’t feel right,” she was welcome to experiment and try something new.

At the end of the apprenticeship, she applied for a network operations technician role and was hired. She took a position with flexible work options so she could still care for her two children comfortably. 

Skills-based hiring made this outcome possible. Cindy’s communication skills, digital expertise, and problem-solving abilities helped her secure her role, and the focus on continuous improvement is helping her develop it .

She says that the combination of her appetite for learning and her employer’s support for her success is the perfect duo for creating limitless growth.

We’ve heard plenty of people say “skills-based hiring doesn’t work in my industry.” But that’s just yet another myth we’ve debunked . Let’s take a look at a handful of case studies about how companies within certain industries have succeeded with skills-based recruitment initiatives.

4. Healthcare

Healthcare administration is an industry that’s notoriously difficult to get into. Between receiving a bachelor’s degree and completing a master’s program, it can take six to eight years of rigorous commitment.

However, more opportunities are arising that allow equally qualified candidates to get in without obtaining specific educational requirements.

Sam Saucedo-Hernandez had a tumultuous life, but she only ever wanted a solid career. As a child of parents who emigrated from Mexico, she wanted to be the first generation in her family to attain a degree.

Sam watched her parents struggle with low-wage jobs and promised herself she would do better for herself.

Her first attempt was at law school where she spent several years studying hard. Sam was ecstatic to get her degree and begin a career in law.

But two weeks after she got her associate of science degree, the school got shut down for fraud, leaving Sam jobless and $60,000 in debt.

Sam faced many challenges, but the turning point in her story was the day she received a letter promoting a no-cost medical administrative assistant job training program from JVS.

JVS is a program that helps people build skills and find solid career connections – particularly in the healthcare industry.[1]

JVS has seen amazing success with over 500 employer partners and an emphasis on promoting diversity: 88% of their participants are Black, Hispanic, Asian, or a wide range of other ethnicities.

Sam applied for the program and was accepted. She secured a position as a medical administrative assistant, but her training has led her to her current role in the audiology department.

Though she’s fortunate for her position, Sam says she’s still looking forward, wondering where her skills can take her from here. 

Programs like JVS are working tirelessly to make more stories like this possible. With a focus on skills over experience, they bring in valuable candidates to industries that may otherwise be restricted to them.

5. Manufacturing

Steelcase, a furniture manufacturing company, wanted to build a fairer place for employment opportunities and encourage better representation for employees of color. So they adopted skills-based hiring practices.

They’re far from the only ones. According to TestGorilla’s State of Skills-Based Hiring report, 85% of businesses in 2023 had the goal to increase diversity.

And companies are succeeding at this by implementing skills-based hiring: 91% of organizations saw an increase in diversity due to skills-based hiring.

Steelcase realized that if they truly wanted to boost their DE&I initiatives , traditional hiring methods wouldn’t do.

They decided their hiring processes needed to be revamped for the better, so they adopted some new practices:

Prioritizing skills over resume and pedigree

Removing experience requirements wherever possible

Favoring continuous improvement over perfection

Revamping job descriptions to reduce biased language

Prioritizing diversity among equally qualified candidates

Steelcase decided that practices like these would enable them to reach diverse talent organically, and it worked. Since the program started, Steelcase’s new hires are 55% women and 30% racial or ethnic minorities.

Steelcase’s initiatives are amazing, so we encourage similar active moves to boost diversity. To read more about this topic, read our blog on why being intentional about workplace diversity is non-negotiable .

6. Software

ADP, an HR management software company, adopted a recruiting strategy to focus on skills , rely less on credentials, and make an effort to provide opportunities for candidates with nontraditional backgrounds.

This strategy included training talent acquisition professionals on best practices, hiring specific diversity recruiters, removing degree requirements from high-volume recruiting roles, and leveraging better training and mentorship for new hires.

What were the results? ADP saw great success in one year:

An increase in the number of candidates with no college degree

An increase in Black representation in the candidate pool

An increase in Hispanic representation in the candidate pool

This program was heavily inspired and backed by Maria Black, the chief executive of ADP, and her strong belief in corporate social responsibility.

She has a strong passion for supporting working women, veterans, and other underrepresented talents.[2]

Maria is an excellent example of the power of leading from the top. When your company’s leadership supports a great cause, it benefits both employees and company alike and builds a better organizational culture .

Next, let’s take a look at some case studies about the regions and countries that are taking on skills-based recruitment practices. For more on this subject, check out our post on skills-based hiring around the world .

7. Maryland, USA

In 2022, the state of Maryland dropped four-year degree requirements for thousands of jobs in the government sector.

The aim of this initiative was to draw attention to the value of alternative credentials and experience. State officials want to give people a better shot at securing a stable, fulfilling job.

Governor Larry Hogan was quoted as saying:

“[W]e are ensuring qualified, non-degree candidates are regularly being considered for these career-changing opportunities.”[3]

Over 38,000 people work for the state of Maryland and it’s estimated that more than half of those jobs can be performed by people whose alternative skill routes can easily substitute for a college education.

These alternative routes include:

Life experience

Non-relevant job experience

Hobbies and volunteer work

Alternative training

Community college education

Maryland estimates that about 47% of its working population are STARs (skilled through alternative routes). That’s 2.8 million workers, and these people need solid opportunities – opportunities that they can access through skills-based hiring.

To learn more about how unnecessary degree requirements are holding top talent back, read our blog on degree inflation .

8. Indiana, USA

Indiana’s tech leaders are struggling to attract and retain great talent. They’re facing a major skill shortage and they can’t solve it with the “usual” hiring methods.

Traditional recruiting methods exclude over 95% of Indiana’s workforce.

Indiana has a workforce of 3,332,239 people, but consider this:

A four-year degree requirement removes 75%

Biases can eliminate up to 30% of the pool

Requiring specific past experience removes 93% of the talent pool

With all of that in mind, a pool of more than three million candidates is reduced to just over 42,000.

Indiana’s Office of Technology (IOT) realized that skills-based hiring practices could fix this problem and solve their shortage.

They started by removing degree requirements from most job descriptions, then took the next step and started offering reskilling opportunities to workers from alternative industries, such as line cooks and truck drivers.

Tracy Barnes, IOT’s chief information officer, said that the results of the program have been positive and they’re “very pleased” so far. She also said that she’s equally excited to see the positive life impacts for the candidates involved.

9. Asia-Pacific

Skills-based hiring is quickly gaining traction in the Asia-Pacific area.

One study showed that 79% of businesses in the Asia-Pacific area look for skills when hiring versus the 21% that prioritize education and experience.[4]

The same study found that internal mobility is more important than ever and that companies want to prioritize gender equality and disability inclusion . These points can also be accomplished by adopting skills-based hiring.

Asia-Pacific is looking to skills-based practices to improve the future of their recruitment processes, but Singapore-based TruTrip is already reaping the benefits .

TruTrip is a business travel management company that needed help assessing candidate skills and hiring the best candidates, so they gave TestGorilla a try.

Here are a few ways that TestGorilla’s pre-employment skills testing helped TruTrip’s recruitment processes:

Gives them a way to objectively assess applicants’ skills and knowledge

Helps them eliminate bias from the hiring process

Enables them to consistently make better hiring decisions

Reduces their reliance on resume screening

Enhances teamwork and communication

Improves the employee experience of new hires

According to Hugh Batley, the founder of TruTrip, their new hires are a better fit. These employees become great contributors and have a better initial experience with the company.

TestGorilla also helps TruTrip save thousands of dollars by reducing the chances of a costly mis-hire. 

This isn’t unusual. According to TestGorilla’s State of Skills-Based Hiring report, 92.5% of organizations using skills-based practices saw a reduction in mis-hires in 2022.

10. The UK and the EU

The UK and the EU have developed a strong focus on skills over the past few years.

Interest in skills-based hiring in the UK rose 63% from 2021 to 2022 . This drastic increase is due to employers wanting a wider talent pool and candidates prioritizing and valuing their alternative experience.

This move is helping job opportunities reach the 73.6% of people in the United Kingdom who don’t possess a four-year degree. [5]

As for the European Union, they developed the “Pact For Skills” program in 2020. This program was created to encourage and fund better upskilling and reskilling while also promoting greater diversity and gender equality.[6]

A good example from both areas is the British-Lithuanian bank, Revolut.

Revolut adopted skills-based hiring by using TestGorilla’s skills tests and, as a result, improved their time-to-hire by 40% .

Among many other benefits, Revolut found TestGorilla’s language tests life-saving. Assessing language proficiency is essential for a multinational company, but traditional methods are time-consuming and laborious.

TestGorilla’s language tests help Revolut to quickly and easily evaluate their candidates’ reading, writing, listening, and speaking skills. This helped them to nearly fully automate their screening process, improving time-to-hire greatly.

To read more case studies and success stories about skills-based hiring, check out our 10 stories that demonstrate the power of skills-based hiring or our collection of customer case studies .

Here are 3 top picks from our case studies:

Revolut improves time-to-hire by 40% using TestGorilla

Design Pickle uses TestGorilla to boost application completion rate by 25%

TestGorilla helps TruTrip to save money and improve employee experience

If you’d like to acquaint yourself with a solid skills-based hiring practice, browse our test library and review our skills tests.

“JVS 2022 Impact Report”. (2022). JVS . Retrieved March 6, 2023. https://impact2022.jvs.org/

“Maria Black, president and CEO”. (n.d). Business Roundtable. Retrieved March 6, 2023. https://www.businessroundtable.org/about-us/members/maria-black-president-and-ceo-adp

McGraw, Mark. (April 4, 2022). “Dropping Degree Requirements: Do Employers Still Care About Education?”. World at Work . Retrieved March 6, 2023. https://worldatwork.org/resources/publications/workspan-daily/dropping-degree-requirements-do-employers-still-care-about-education

“The Future of Talent”. (2021). LinkedIn . Retrieved March 6, 2023. https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/future-of-talent-whitepaper.pdf

“Overview of the education system”. (2022). Education GPS . Retrieved March 6, 2023. https://gpseducation.oecd.org/CountryProfile?primaryCountry=GBR&treshold=10&topic=EO

“Pact for Skills”. (November 10, 2020). European Commission . Retrieved March 6, 2023.  https://ec.europa.eu/social/main.jsp?catId=1517&langId=en

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Investment Banking Case Studies – Job Application

By Ivy Wang |

November 21, 2022

What are Investment Banking Case Studies

Candidates will normally encounter case studies at the final stage of the application process, likely during an assessment or final-stage interview. Investment banking roles are highly competitive, and candidates must be properly prepared.

Investment banking case studies are commonly used to assess how a job candidate would perform in a real situation by presenting them with a theoretical scenario similar to those encountered on the job.

Most investment banking case study questions center on acquisitions, raising capital, or company expansion. The case may be given to you ‘blind’ on the day of your assessment with only a short amount of time provided for preparation. If the case is likely to involve deep analysis, financial modeling, or a company valuation, you will likely be given the case in advance to give you more time to work on it before the assessment day.

Key Learning Points

• Investment banking case studies are often used to assess how job candidates would perform in a real situation by presenting them with a theoretical scenario like one they would encounter on the job.
• While general questions give the interviewer a superficial impression of the candidate’s skills and fitness, case study questions allow the interviewer to assess the candidate’s ability to handle multiple levels of analysis and problem-solving.
• Case study questions test reasoning and communication skills as well as analytical skills. They are useful for assessing how candidates approach complex issues, make critical judgments, and deliver recommendations.
• With many case study problems, there will be more than one path to success and more than one possible solution.
• Investment banks are looking for decisive candidates who can articulate and logically present their solutions and defend their decisions under scrutiny.

What are the Types of Investment Banking Case Studies?

In general, there are two types of case studies during an investment banking assessment, the decision-making case, and the financial modeling case.

Decision-Making Investment Banking Case Studies

Decision-making case studies appear more frequently than modeling case studies. In this type of case study, the candidate must make decisions for their client and provide advice. The client case studies could be based on finding funding sources, or whether a proposed merger should proceed and why or why not.

You should expect these questions to be given to you at the interview. Therefore, you must analyze and present the case within a given time frame. Throughout, you will have 45-60 minutes of preparation time and a 10-minute presentation, followed by a round of Q&A.

These case studies do not involve in-depth analysis of the case, given the short amount of time available.

Decision-Making Case Study Example

One of your clients is a global corporation that manufactures and distributes a wide range of perfumes. They are contemplating ways to expand their business. They may either introduce a new range of fragrances with their current distribution channels or start a completely new company with different stores.

You need to determine which solution is better for the business. To do so, you need to compare the return on investment and decide on a solution. Be ready to support your reasoning.

Modeling Investment Banking Case Studies

Modeling case studies are usually take-home assignments where you must do financial modeling and a simple valuation. Thus, it is more of a modeling test than a case study. The Investment Banker provides an introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

The modeling case study will either employ a free cash flow to the firm (FCFF) valuation on a company or require a simple merger or leveraged buyout model. You would be expected to analyze the corporations’ valuation multiples to determine whether they are undervalued or overvalued.

Generally, you will be given a few days to complete your analysis. Then, you need to spend 30-45 minutes on the day of the interview presenting your case to the bankers. The analysis will go much deeper than a client case study because you will have more time to work on it.

Modeling Investment Banking Case Study Example

A pharmaceutical company wishes to make an acquisition. It has identified the target company and approached you to determine how much they should pay. You will be provided with the necessary financial information, metrics, and multiples, as well as the buyer and seller company profiles.

To complete the case study, you need to determine if the acquisition is feasible. Second, what would be the structure and synergies of the deal if the buyer has access to capital? You need to use multiples and valuation metrics to determine the price range for the transaction.

Access the three-statement case study example to practice a modeling case study.

How to Prepare for Investment Banking Case Studies

Regardless of which type of case study a candidate is presented, the thought process and deliverables are the same. The best way to prepare is to:

• Ensure that key business concepts are well understood and that you can use the associated terminology comfortably in a conversation.
• Learn about various valuation techniques, how to employ them, and how to interpret them. Prepare for case studies by mastering valuation for investment banking with the online investment banker course . Learn how and when to utilize key valuation methodologies and the supporting calculations
• Make sure you read business news regularly and focus on discussing the details of banking transactions in the news.
• Read as many case studies as possible so you get the knack of understanding business scenarios and analyzing Especially for modeling and valuation-based case studies, you must be prepared to format your work using PowerPoint and Excel.
• Check company websites to see if sample case studies are available for reference. Investment banks do not tend to publish case study questions for practice. However, it is possible to formulate your own questions by looking at business scenarios involving possible mergers, valuations, or capital raises.
• Candidates must practice streamlining their thought process so judgments can be made under time pressure.
• Read through the scenario carefully before beginning to form an opinion on how the problem should be tackled. This will ensure that no intricacies are missed, and your response addresses all facets of the case.
• Learn how to stand out from the crowd in your interview with the investment banker interview skills course , designed to prepare you for your interviews and enable you to make a great impression.
• Investment Banking Case Study Example

1.     Scenario

A magazine publisher is evaluating whether it should sell, continue to grow organically, or make small “tuck-in” acquisitions to maximize shareholder value. It is selecting an investment bank to advise on its options and has requested a presentation from your bank.

2.     Task

Review the company’s financial and market information and create a 30-minute presentation analyzing its options. Recommend a specific course of action – selling the company, continuing to grow organically, or making smaller acquisitions.

3.     Solution

The answer to this case study is rather subjective. You should take a stand and support it with well thought out reasons. Here’s how you should approach it:

• First, read through everything and get a sense of the industry, where it’s heading, and how much this company might be worth based on comparables. If they don’t give you much information on comparable public companies or precedent transactions, you’ll have to do your own research.
• Complete a brief valuation using public comps, precedent transactions, and a DCF.
• Weigh the numbers the valuation gives you, the company’s organic growth prospects, and whether there are any good companies to acquire.
• Make a decision-it’s usually best to say “sell” unless the industry is growing quickly (over 10% per year), the company is extremely undervalued, or there are acquisition targets that would boost revenue or profit by at least 20-30%.
• Keep this simple and straightforward-the numbers should back up your reasoning, not take over the entire presentation.
• You could get much fancier with the analysis and look at the company’s valuation now, 5 years from now, and if it acquires 1 or 2 companies, but that isn’t necessary and it may just make your presentation more confusing.

4.     Sample Answer

If you decide to sell, you can write:

Slide 1: Recommendation to sell and the three key reasons why.

Slide 2: Industry overview – Is it growing?  Shrinking?  Stagnant?

Slide 3: Company’s position in the industry – Leader?  Tier 2 player?  Where is it strong / weak?

Slide 4: What organic growth would look like 5 or 10 years in the future – how much bigger / more highly-valued would the company be?

Slide 5: Potential tuck-in acquisition candidates.

Slide 6: Why neither organic growth nor acquisitions are the answer.

Slide 7: Why selling now produces the greatest shareholder value.

Slide 8: Valuation – Show public comps and precedent transactions.

Slide 9: Valuation – Show DCF output and sensitivity table.

Slide 10: Conclusion – Reiterate that selling now is the best option and that neither organic growth nor acquiring smaller companies will result in a higher valuation 5-10 years from now.

If you come to a different conclusion – for example, that acquisitions are the best strategy, you would reverse the order and list the solutions you’re not recommending first, concluding with the one you are suggesting.

Investment banking case studies are an important element in the interview process, it is an opportunity to showcase your skills and talent to investment bankers. In general, there are two types of case studies, the decision-making case study and the financial modeling case study. Candidates will need to be confident in their valuation skills. They will also need to display a good level of commercial awareness. Presentation skills are also critical.

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