How do you best prepare for the technical interview component at distressed asset investment management firms?

I will give you the extremely short version of what I would want to discuss with a new hire in a case study. You need to understand and be crisp about the following: 1. "Does the company have a reason to exist or is it a melting ice cube?" This the most fundamental question and where you should always start your analysis. A company in distress may be good value (because it is cheap) but that presumes that it can be turned around. Big assumption to make since the company got into trouble in the first place. This is where your SWOT analysis needs to be spot on. 2. Understand the balance sheet and cash flow statement of the company. The profit and loss is interesting but the company is in distress. How long before they run out of cash? Which liability/claim has priority over the others? Are they secured? Which claim matures first? Lots of questions around the balance sheet and cash-flow statement. 3. "Where does the value break?" Assuming the company files, what is it it worth, either as a going concern or in liquidation? Can you sell the assets or the company, who will buy it and what will they pay for it? Your arguments need to be strong enough to convince a bankruptcy judge, because thats where these matters get decided. 4. What is the trade, i.e.what happens next with this company and the price of its securities? Do you get involved now or do you wait for the price to drop? What is the upside and the downside to your recommended course of action? Be conservative in your assumptions (you are dealing with distressed companies after all) but be thoughtful in your arguments. And remember cash is king and matters more than profits and net asset values!