Domain Deep-Dives · 9 min read
Investment Banking Interview: Technicals & Fit
Valuation, accounting, and the fit answers that get you the analyst offer.
Banking interviews reward two things: airtight command of a fixed set of technicals, and a believable story for why banking and why this firm. The technical universe is finite and well-known — which means preparation, not talent, decides most outcomes. This guide maps the must-know concepts and the fit answers.
The three valuation methods
- •Comparable companies: value the business off trading multiples (EV/EBITDA, P/E) of similar public firms.
- •Precedent transactions: use multiples paid in past M&A deals — usually higher due to control premiums.
- •Discounted cash flow (DCF): project free cash flows, discount at WACC, add terminal value. The intrinsic method.
Walk me through a DCF
Accounting fundamentals
You must be able to link the three statements. The classic test: 'depreciation increases by 10 — walk me through the three statements.' Practice these flows until they're automatic, watching the tax effect and how the cash flow statement ties net income back to cash.
- •The three statements: income statement, balance sheet, cash flow — and how a change ripples through all three.
- •Enterprise value vs equity value, and the bridge between them.
- •LBO basics: how returns are driven by leverage, operational improvement, and multiple expansion.
Fit: why banking, why us
- •Why banking: connect a genuine interest (deals, learning curve, finance foundation) to your background — avoid 'prestige' and 'money'.
- •Why this firm: reference specifics — a group, a recent deal, culture, people you've spoken to.
- •Know your resume: every line, especially any deal or finance experience, is fair game.
- •Have smart questions ready; curiosity about the work reads as genuine interest.
Practice a finance mock
Rehearse technicals and fit answers out loud and get instant feedback.
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