Recruiter's Glossary

Examples: Sensitivity Analysis • Investment Advisory • Cash Flow Management

Corporate Finance

Term from Business Advisory industry explained for recruiters

Corporate Finance is a business area that focuses on how companies handle their money and make financial decisions. Think of it as the department that helps businesses make smart choices about investing, raising money, and managing their financial health. This field includes activities like helping companies buy other businesses (mergers and acquisitions), deciding when to sell shares to the public (IPOs), planning how to fund growth, and analyzing if new projects are worth the investment. It's similar to personal financial planning, but for large organizations instead of individuals.

Examples in Resumes

Led Corporate Finance team in analyzing potential acquisition targets

Provided Corporate Finance advisory services to Fortune 500 clients

Executed multiple Corporate Finance projects including IPO preparations and merger analysis

Typical job title: "Corporate Finance Professionals"

Also try searching for:

Corporate Finance Associate Investment Banking Associate Financial Analyst M&A Analyst Deal Advisory Manager Transaction Services Manager Corporate Development Manager

Where to Find Corporate Finance Professionals

Professional Associations

• Association for Corporate Growth (ACG)
• Corporate Finance Institute
• CFA Institute

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: Can you describe a complex M&A deal you've led and what challenges you faced?

Expected Answer: Look for answers that show leadership in managing large transactions, ability to handle multiple stakeholders, and problem-solving skills when dealing with complex financial situations. They should mention coordination between different teams and managing client relationships.

Q: How do you approach valuing a company that has negative earnings but high growth potential?

Expected Answer: Strong answers should demonstrate understanding of different valuation methods, particularly for growth companies, such as revenue multiples, market size analysis, and future earnings potential. They should also mention real-world examples.

Mid Level Questions

Q: What factors do you consider when recommending funding options to a client?

Expected Answer: Look for understanding of different funding sources (debt, equity, hybrid), consideration of company size, industry, and growth stage, and ability to analyze financial statements and market conditions.

Q: How would you explain a discounted cash flow analysis to a non-financial person?

Expected Answer: Should be able to simplify complex financial concepts into understandable terms, showing both technical knowledge and communication skills.

Junior Level Questions

Q: What are the main financial statements and how are they connected?

Expected Answer: Should be able to explain income statement, balance sheet, and cash flow statement in simple terms and how they work together to show a company's financial position.

Q: What is working capital and why is it important?

Expected Answer: Should explain working capital as the money needed for day-to-day operations, demonstrating basic understanding of business operations and cash management.