Valuation Associate Interview

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dhyun3

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Hi all-
I’m currently working as an investment associate at an asset management company and will have an interview with KPMG for an economic & valuation services associate position next week. Based on the job descriptions, it seems like a combination of valuation and transfer pricing. I used search function to read some posts from transferpricingCFA and other users and am wondering if anyone can provide interview tips, KPMG culture, exit opportunities, etc,… I have many friends working at big 4, but KPMG…
A brief background: I graduated with finance in 09 and am a level 3 candidate. I would like to go get an MBA in a few years.
Thanks in advance!
 
KPMG or the other big 4, they are all the same at the end of the day.
Economic and valuations I believe are working heavily with transfer pricing work, but i believe also with other valuations.
I guess the core of your question is about exit ops, unfortunately I just dont know. I know a few guys who have left for other big 4 corporate finance departments to do M&A or restructuring or the like. But thats about it.
 
I know someone who has an interview for this exact position this week. He is an undergrad though. I guess they must be building up the group
 
Sorry forgot interview tips:
I dont actually know what sort of intercompany transactions that department values, besides the obvious IP and business operations shift. THat is to say I dont know if there is a different TP group, maybe in the tax department that deal with other transfer pricing issues.
Either way, Id recommend having a quick read through on the OECD transfer pricing guidelines for multinationals (this is the transfer pricers bible). There is also a newly issued guidelines, or maybe its just proposed guidelines by the OECD that deal with business restrucurings which could be helpful to know a bit about for, for this group.
I dont know how techincal theyd get, but if they expect you to have some background knowledge, know about valuation, particularly valuation of intellectual property. So DCF stuff, multiples, etc. Dont know if theyd expect you to drill down and know further IP principles such as relief from royalty valuation etc, but if you do perhaps can impress them.
Also, not sure if this group is involved in loan pricing, if so maybe good to know a bit about debt pricing (ie credit ratings and interest rates etc.)
Any other questions, just ask
 
transferpricingCFA Wrote:
——————————————————-
>
> Either way, Id recommend having a quick read
> through on the OECD transfer pricing guidelines
> for multinationals (this is the transfer pricers
> bible). There is also a newly issued guidelines,
> or maybe its just proposed guidelines by the OECD
> that deal with business restrucurings which could
> be helpful to know a bit about for, for this
> group.
>
+1 to the OECD guidelines. Definitely a must know.
 
Just out of curiosity… why would you want to go from an asset management firm to an accounting firm?
 
TransferpricingCFA and EBSC- Thanks for your help. It’s really helpful. I will definitely check the OECD guidelines as well. As you mentioned, I don’t know how techinical it’ll be. Just in case, I will read CF and equity materials from lv2 book.
One more question to TransferCFA, do you interact or have a meeting with your co-workers and clients regularly? I just don’t want to have a job where I will be sitting by myself all day and crunching numbers into Excel or Powerpoint. As an entry level, I know I will have to suck it up and have been doing it for last 12 months. I’m just looking for a position which I feel like I work with human beings…
Re the CFACurse’s question, my firm is 100% passive investment management company. After I joined my current firm, we’ve made only “one” change to our overall investment strategy and allocation. I don’t really get to develop any analytical, modeling or quan/qual skills, except using Excel and Powerpoint almost every single day. After passing level 2, I realized I really want to do more techinical/complicated things. Of couse, had I worked for fidelity or PIMCO, I wouldn’t transition. But our firm ($500 million) is pretty small and I would like to work with younger and more passionate people. Don’t get me worng. I’m grateful that I have a job that I can pay my bills and at very least experience that it will count towards CFA. I just think it’s time for me to move.
Thanks again guys amd good luck for everyone looking for a job now. If I can get some interview, then you can too!
 
dhyun3,
I dont know exactly aobut the economics and valuation services division, as I am in a global transfer pricing unit. So I cant talk about that group specifically, but I suspect it may be similar
From the perspective of my group, tehre is plenty of coworker interaction, meetings, discussions etc.
And with clients it is also quite frequent. Phone calls and emails, and also meetings at clients (sometimes at own office to), to discuss things, and particularly for info gathering interviews etc.
But just so you are aware, transfer pricing is not asset management at all. No working with portfolio allocations or any of that stuff…
 
Thanks again transferCFA. I do understand that transfer pricing is not asset management. :)
 
I think it went well. He, a partner, didn’t really get into a detail and just asked me about my current job, interest, life, CFA and why now things like that.
I guess (maybe wrong) he was impressed by the fact that I’m a level 3 candidate, so he really didn’t bother to ask me whether I know DCF, WACC or any other technical questions. Also, this is an entry level position, so they probably wouldn’t ask anyway.
Overall, I like the job, people and location. I will keep you updated. If I get the job, come down to DC/MD/VA, your drinks are on me. Thanks again guys for help.
BTW, what do you (RadBikerSouthCO) do for living?
 
Yeh, if its entry level, most TPers dont expect you to really know anything about it. Just some of the finance principles used would be good.
And also show an interest in that you have researched as much as you can about what its like, and what TPers do, and you think you will enjoy what they do (mention specifically what aspects I guess).
 
dhyun - i did some transfer pricing in the past but now started a small consulting shop with my brother. good luck with the rest of the interview process!
 
Ok, I was invited for a second interview. As it’s the second round, I’m going to read the OECD guide and review some valuation techniques. Thanks again TPCFA and RBSC.
If anyone has been to a second interview at big 4 or any valuation shop, your advice would be greatly appreciated. By the way, I will have to go to their office.
Thanks in advance.
 
Is the interview for valuation or transfer pricing? There seems to be references to both, and I know these are generally separate groups.
 
I think it’s for both. For KPMG, Economic Valuation Services (EVS) is divided into three service lines, valuation, transfer pricing and economic consulting, and as it’s an entry level position, I will get to try them on my first year and decide what I will focus. Well, I might be wrong, but that was my take during the interview.
 
Ok. I had the second interview today and got a call from them a few minutes ago…..
I got the job!!! Thanks again for TransferPricingCFA, RBSO, and Jcole21’s advice. Without AFers, there is no way I got the job and passed the cfa level 1 and 2.
Again, I really appreciate it!
 
Congrats mate. Hope its a good move for you and your career.
Also, I wont forget if Im ever in the states, to hit you up for a beer!
 
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