Investment-banking interviews are dense and fast: they test your fit (motivation, communication, stamina) and your technical chops (accounting, valuation, markets). Here are 10 must-know questions with clear, credible ways to answer them—so you can practice like a human, not a script.
1) “Walk me through your résumé.”
The goal is a crisp 60–90 seconds with a clear thread: Past → Present → Future.
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Past: highlight 2–3 experiences with quantified impact.
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Present: what you’re doing now and what you’re learning.
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Future: why IB is the logical next step and what you bring (work ethic, detail-orientation, Excel/PowerPoint fluency).
Don’t recite every line—tell a progression.
2) “Why investment banking?”
Show an intrinsic motivation: accelerated learning, deal exposure, responsibility early, work that moves real companies. Anchor it to something you did (an M&A case competition, an acquisition you analyzed in an internship, a finance club project). Close with what you offer: grit, teamwork at odd hours, ownership mentality.
3) “Why our bank?”
Be specific. Mention 2–3 deals or coverage sectors relevant to the office you’re targeting, one cultural element (training, staffing model, rotations), and any meaningful coffee chats. Prove you know where you want to be—and with whom.
4) “Tell me about a recent deal you’re following.”
Use a four-step frame:
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Context: acquirer, target, sector, headline value.
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Strategic rationale: cost/revenue synergies, market share, tech or geographic fit.
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Financing: cash, stock, debt (and why that mix).
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Valuation & risks: EV/EBITDA or P/E, premium to unaffected price, peers; plus risks (antitrust, integration, cyclicality).
Keep it to 60–90 seconds and add one analytic angle (“a 28% premium implies ~2% revenue synergies if the multiple holds”).
5) “How do the three financial statements link together?”
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Income statement: net income flows into retained earnings on the balance sheet.
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Cash flow statement: starts with net income, adds back non-cash (depreciation) and adjusts for working capital and capex to arrive at the change in cash.
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Balance sheet: cash updates, PP&E falls by depreciation (offset by capex), and equity reflects retained earnings (minus dividends). Assets must equal liabilities plus equity.
6) “How do you value a company?”
Three core methods:
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Trading comparables: market multiples (EV/EBITDA, P/E) vs. peers. +Fast; –market-dependent.
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Precedent transactions: prices paid in similar deals. +Includes control premium; –sample size issues.
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DCF: discount free cash flows and add a terminal value. +Fundamental; –sensitive to assumptions.
Add-ons: SOTP for conglomerates and LBO to set a floor (what a sponsor could pay for a target IRR).
7) “Walk me through a DCF.”
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Project operating performance (5–10 years).
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Compute FCF = EBIT(1–t) + D&A – Capex – ΔNWC.
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Use WACC as the discount rate (target capital structure; cost of equity via CAPM; after-tax cost of debt).
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Estimate terminal value via perpetuity growth (g) or exit multiple.
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Discount and sum FCFs + TV = Enterprise Value; subtract net debt to get Equity Value.
Finish with sensitivity tables (WACC, g, margins).
8) “If depreciation increases by $10, what happens to the three statements (30% tax)?”
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P&L: EBIT –10; taxes +3 (shield); net income –7.
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Cash flow: NI –7, add back +10 depreciation ⇒ cash +3.
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Balance sheet: cash +3; PP&E –10; equity –7 (retained earnings). Assets (–7) match equity (–7). It balances.
9) “What makes a good LBO candidate?”
Predictable cash flows, solid margins, moderate capex, steady organic growth, saleable assets, credible management, reasonable entry multiple, and levers for improvement (costs, working capital, carve-outs). Prefer less cyclical sectors and bolt-on prospects.
10) “Tell me about a time you worked under pressure / resolved a conflict.”
Use STAR (Situation, Task, Action, Result). Be specific (timelines, deliverables, tools), highlight teamwork, crisp communication, and a lesson applicable to IB (prioritization, feedback loops, quality under time pressure).
Delivery tips that move the needle
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Clarity > jargon: short sentences, round numbers, orders of magnitude (“+180 bps margin in two years”).
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Quantify impact: “Rebuilt a 3-statement model; cut update time by 40%.”
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Structured thinking: use 1-2-3 lists; avoid rambles.
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Demeanor: high energy, active listening, zero complaining about hours, no bravado.
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Mental math: practice multiples, percentages, interest.
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Fit stories ready: leadership, learned-from-failure, conflict resolved, late-night crunch, taking initiative.
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Technical hits ready: statements linkage, DCF + sensitivities, comps vs. precedents, LBO in 60 seconds.
Mistakes to avoid
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Generic answers to “Why IB / Why us.”
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Mixing up EV vs. Equity Value, EBITDA vs. FCF.
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Ignoring working capital in a DCF.
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Reciting a guide without understanding.
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Forgetting to ask questions at the end (team dynamics, staffing, deal flow, training).
Example closing you can adapt
“Thanks for your time. What attracts me here is the balance of structured training and on-the-job responsibility on mid-cap M&A. I’d love to help where the team needs it most—comps screens, company profiles, tight three-statement models, and clean slides. In your view, what traits do the analysts who ramp fastest in their first quarter share?”