Houlihan Lokey interview process

1. Step 1

   First round

   30-45 minutes, one or two interviewers, virtual, on DCF, accretion/dilution, and LBO intuition.

   • For the Financial Restructuring group, expect the interview to be almost entirely technical after the opening fit question.
   • Non-restructuring first rounds are described as somewhat less aggressive than at Centerview or Evercore.
   • “Why Houlihan Lokey?”
   • “Why this office?”

2. Step 2

   Final round

   Four to six interviews over a half-day at the relevant office, with senior bankers joining from round two on.

   • Expect capital structure recovery waterfalls and Chapter 7 versus Chapter 11 basics for restructuring seats.
   • Behavioral content weighs collegiality, work ethic, and authentic interest in the middle market.
   • “Why middle market?”

Share of the 10 Houlihan Lokey questions in our bank by topic. Each topic links to a worked example.

1. Three-statement questions20%
2. Restructuring questions20%
3. Enterprise value bridge10%
4. Valuation multiples10%
5. DCF questions10%
6. Paper LBO10%
7. Mental math and markets10%
8. Behavioral questions10%

• Capital structure recovery waterfalls across multiple debt tranches.
• Chapter 11 process, distressed valuation, and creditor priority for restructuring seats.
• Standard DCF, accretion/dilution, and basic LBO intuition as the non-restructuring baseline.
• Genuine interest in the middle market versus treating HL as a fallback.

Real questions from the set. Open one to answer it with grading.

• How do you reflect $100 of PIK interest through the three statements?Three-statement questions|Advanced
• What are the two sides of a restructuring, and who do we typically advise?Restructuring questions|Advanced
• Solve the recovery waterfall across the capital structureEnterprise value bridge|Advanced
• Which valuation method gives the highest or lowest value, and why?Valuation multiples|Advanced
• Walk me through a DCFDCF questions|Basic
• What makes a good LBO candidate?Paper LBO|Basic
• Lily pad doubling brain teaserMental math and markets|Basic
• How does a $10 increase in depreciation flow through the three statements?Three-statement questions|Basic

• Walk a recovery waterfall across multiple debt tranches cleanly under time pressure.
• If interviewing outside restructuring, still prepare distressed and capital-structure questions; HL's RX reputation shapes screening firm-wide.
• Give a specific answer on why the middle market and why this particular office, not a generic why-banking pitch.
• Research a recent HL deal in enough depth to discuss the situation, not just the headline.