Houlihan Lokey HireVue Questions & Prep

“Why do you want to build your career at Houlihan Lokey rather than at a bulge bracket or a pure-play advisory boutique?”

What they test. Specific, researched motivation and market positioning

Weak answer. It is a top investment bank that works on huge global deals, and I want to learn modeling from the best people on Wall Street.

Strong answer. I am drawn to the Restructuring practice because of its unique position advising both debtors and creditors on complex balance-sheet engineering. With rates restrictive, working on liability management and out-of-court exchanges at the market-leading firm offers an unmatched technical foundation.

“What attracts you to our Financial Restructuring Group, and how do current cycles affect our pipeline?”

What they test. Understanding of the counter-cyclical model

“Which of our industry coverage groups interests you most, and what trends are driving M&A there today?”

What they test. Sector-specific commercial awareness

“Tell me about a time you worked on a team where a member failed to pull their weight. How did you handle it?”

What they test. Conflict resolution and delegation

Weak answer. I just did all of it myself overnight because I wanted an A, and we got the highest grade.

Strong answer. When a teammate fell behind on the model due to weak Excel skills, I broke the task into modules, reallocated the qualitative research to them while I handled the DCF, and we hit the deadline by playing to strengths.

“Describe a time you made a mistake in a quantitative setting. How did you identify and rectify it?”

What they test. Accountability and remediation

“Walk me through your resume, highlighting the inflection points that led you to Houlihan Lokey.”

What they test. Narrative thread and executive presence

Strong answer. A tight story from university and major, through a defining finance experience, to why advisory and live transactions, positioning HL as the logical next step.

“Identify a major corporate restructuring or bankruptcy from the past 12 months. What drove the distress?”

What they test. Credit-cycle awareness

Weak answer. I would buy Nvidia because AI is growing fast and everyone needs chips.

Strong answer. I have been tracking a retailer whose capital structure became unsustainable from heavy floating-rate SOFR debt plus margin compression, with an upcoming maturity wall it could not refinance, forcing a pre-packaged Chapter 11 to restructure senior secured tranches.

“A company has a $10 million increase in depreciation at a 30% tax rate. Walk me through all three statements.”

What they test. Accounting flows and the tax shield

Weak answer. Net income goes down $10 million and cash goes down.

Strong answer. Pre-tax income falls $10 million; at 30% tax, net income falls $7 million. On the cash flow statement net income is down $7 million but you add back the $10 million non-cash depreciation, a net cash increase of $3 million. On the balance sheet, cash is up $3 million and PP&E down $10 million, so assets are down $7 million, matching the $7 million fall in retained earnings.

“How do DIP financing and structural seniority function during a restructuring?”

What they test. Credit and distress fundamentals

“You find a glaring formatting error in a pitchbook already sent to a client. What do you do?”

What they test. Ownership and professional maturity

Strong answer. Immediately notify the Associate, present a clean corrected version and an updated PDF, take full ownership, and put a multi-point checklist in place for future print runs.

“Explain a DCF or an LBO to a 10-year-old.”

What they test. Ability to simplify and stay poised