Investment Banking Interview Questions

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Define Why You Want To Do Investment Banking

  • Opportunity to work and learn from the smartest people
  • Ability to execute a large amount of transactions and learn the deal process inside and out
  • Passion for finance; IB provides exposure to sophisticated deals as well as financial modeling
  • Fast-paced environment
  • Collegial team environment

How We Help You Achieve Career Growth

Your career growth is reflected within your resume. Get coached on how to retell each triumph.

Handling The Interview

Staying calm and focused on answering the questions clearly.


Interviewing With Multiple Banks

Being honest and letting your potential employer know that you are invested in searching.


Strengths & Weaknesses

Understand your strengths and weaknesses so your employer can ensure perfect fit.

Where do you see yourself in 5, 10 and 15 years?

This question may be good to show bits of your personality and how you plan to use banking to pivot in maybe 15 years to another career of your passion.

Why do you want to work at a boutique or bulge bracket or Canadian or American bank?

Both boutique and bulge brackets are tremendous firms to work for, but it is key that you have set stories for both types of banks.

What makes a good modeler?

A good modeler is someone who is curious and tenacious. A great model is a tedious process that involves research and looking at numerous forms of guidance to come up with reasonable numbers and assumptions.

Have You Ever Managed A Team Before?

  • Describe the context of the team’s goals and how you arrived into a leadership position. Elaborate on the challenges you faced and how you overcame them. Make sure to communicate clearly and provide tangible details on both the challenges and the steps you took to overcome them.
  • Finally, speak about how your efforts led to a positive result; if you can quantify this result, that’s even better, although it’s not necessary. Conclude with what you learned and gained from the experience.

Why Not Private Equity?

  • Although some candidates may be interested in private equity, it’s important to speak to your interest in investment banking. The focus should be talking about all the advantages of investment banking, rather than talking about the disadvantages of private equity.
  • For example, maybe you enjoy the client presentation aspect of investment banking, which requires you to understand what the client wants and how the deliverable should be framed to maximize value.

8 Articles You Need To Ace Your Next Financial Interview

What is Multiple of Capital or Money-on-Money?

Multiple of capital, also known as money-on-money, is calculated by dividing the ending equity by the initial equity invested. It shows you how many times the equity in the investment has grown. For example, if a company delivers 2x return, that means the ending equity received after the sale was twice the equity initially invested. […]

What is IRR?

IRR stands for internal rate of return, and PE firms use this metric to judge the return on an investment. IRR is the annualized return of the equity investment, and is equal to the CAGR of the equity investment until exit, assuming no other interim cashflows before the sale of the company, such as dividend […]

What is a dividend recapitalization and why do PE firms use them?

A dividend recapitalization is when a company borrows money to pay its investors a dividend. This happens when the company has paid down significant amounts of debt from the original LBO, there are limited growth opportunities to invest the debt proceeds into, and investors want to enhance their return through a dividend. The bank typically […]

Why do you have to project the financial statements without the impact of debt prior to building the debt schedule?

In order to calculate the cash flow available for debt repayment, we have to project the income statement and cash flow statement. Initially, we exclude debt items, such as interest expense on the income statement and debt repayments on the cash flow statement, since we need the debt schedule to populate these items. After calculating […]

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