The400InvestmentBankingInterviewQ

The400InvestmentBankingInterviewQuestions&AnswersYouNeedtoKnowAProduction://breakingintowallstreet.com://breakingintowallstreet.com“CareerChanger”Questions&SuggestedAnswers.............................................14CommitmentQuestions&SuggestedAnswers.....................................................17CultureQuestions&SuggestedAnswers...............................................................20“Future”Questions&SuggestedAnswers.............................................................23Strengths/WeaknessesQuestions&SuggestedAnswers...................................25Team/LeadershipQuestions&SuggestedAnswers............................................29UnderstandingBanking&SuggestedAnswers.....................................................33“WarrenBuffett”Questions&SuggestedAnswers..............................................39“WhyBanking?”Questions&SuggestedAnswers...............................................45“Failure”Questions&SuggestedAnswers............................................................48“OutsidetheBox”Questions&SuggestedAnswers............................................52DiscussingTransactionExperience..............................................................................55Restructuring/DistressedM&AQuestions&Answers...........................................62TechnicalQuestions&Answers...................................................................................75AccountingQuestions&Answers–Basic..............................................................76AccountingQuestions&Answers–Advanced.....................................................89Enterprise/EquityValueQuestions&Answers–Basic......................................95Enterprise/EquityValueQuestions&Answers–Advanced...........................100ValuationQuestions&Answers–Basic...............................................................102ValuationQuestions&Answers–Advanced......................................................113DiscountedCashFlowQuestions&Answers–Basic.........................................119DiscountedCashFlowQuestions&Answers–Advanced................................128MergerModelQuestions&Answers–Basic.......................................................131MergerModelQuestions&Answers–Advanced..............................................139LBOModelQuestions&Answers–Basic............................................................148LBOModelQuestions&Answers–Advanced...................................................155BrainTeaserQuestions&Answers........................................................................162:tohelpyouanswerthemostimportant“fit”andtechnicalquestionsininvestmentbankinginterviews.Wetellyouwhat’simportantandwhatyouneedtosay–nothingmoreandnothingless.Mostotherguidessufferfromseveralproblems:1.Theinformationisnotinvestmentbanking-specific.Doyouthinkyou’regoingtogetaquestionabout“Whyyou’reinterestedinthisposition?”I’lltellyouwhyyou’reinterested–becauseyouwanttomakealotofmoney!2.Theinformationisout-of-date,wrongorincomplete(see:TheVaultGuide).Thesedays,interviewersassumeyouknowthebasics–likehowtovalueacompany–andgobeyondthatwithadvancedquestionsthatrequirethinkingmorethanmemorization.3.Noanswersareprovided,orthere’sminimaldirection(see:TheRecruitingGuidetoInvestmentBanking).Ofcourse,youshouldn’tmemorizeanswersword-for-word,butit’shelpfultohaveanideaofhowyoumightstructureyouranswers.4.Thequestionsdonotapplytointervieweesfromdiversebackgrounds.IfyouworkedatGoldmanSachsthispastsummerit’snothardtoconvincethemyou’reseriousaboutfinance–butwhatifyoudidn’t?Whatifyou’remakingacareertransitionoryou’recominginasamoreexperiencedhire?That’swhatthisguideisfor.5.Theguideswerenotwrittenbybankers.Ifyoudoubtmycredentials,justrefertoMergers&Inquisitions,whereI’vewrittenover200detailedarticlesonnetworking,resumes,interviews,andrecruitingforinvestmentbankingandprivateequity.Theproofisinthepudding.Yourtimeislimited–sowegetyoutheanswersyouneed,whenyouneedthem(rightnow).Whatfollowsisalistof400investmentbankinginterviewquestionsandanswers,dividedintodifferenttyp