Sample interview questions
Investment Banking
2019 Bank A, interview 1
1. Walk through comparable companies, DCF
2. Asked to introduce the deal I had researched: went through the commercial rationale behind the
deal, the price and structure of the deal, and the strategic elements of synergies, competitive
landscape of the industry, and looking forward how the post-merger group may perform
3. How you would have applied DCF and comparable valuation methods in this deal, line by line for
cash flows, and detail on the WACC and its constituents (down to the level of what risk free
rate/market risk premium/beta factor you would use), and a short discussion of the terminal value
calculation
4. Which multiples you would consider and why, and thought about precedent transactions also. How
you would have valued the company using an LBO model (again in detail and applied to the), and
how the returns for the purchasers would be calculated using LBO
2019 Bank A, interview 2
1. motivation/what specifically made me want to pursue a career in investment banking
2. Why did I choose to do an MBA, what aspects of the course had motivated me to do so
3. Wy a boutique bank and not bulge bracket, and specifically why Bank A
4. Asked to outline exactly what work I had carried out on each transaction, and to give context as to
why the transaction was taking place
5. I was then asked if I had any interests outside of work, if I could do anything over the next 3 – 5
years what would it be, and what parts of business school I had enjoyed the most so far
2019 Bank B, interview 1
1. Start with self-introduction and ask the candidate to walk through the CV
2. Followed with three structured questions:
a. tell me about a time you exceeded expectations
b. tell me about a time you joined a team that was struggling
c. you're doing an industry report, comprised of aggregated information across a number of
your clients. Client A has asked you for Client B's information, what do you say to them
3. The interviewer then asked further questions about each example followed by a chat for the final ten
minutes.
2019 Bank B, interview 2
1. Walk me through your CV
2. Why Bank B
3. Name two highlights at work
4. What do you think are the three main tasks of an Associate, which skills do you need to succeed
5. Would you like to work in London/Frankfurt (the interview is in German with an ED from Frankfurt
office)
6. Situational / Behavioural questions:
a. Tell me how you handled a tough or challenging situation
b. When you are assigned to a team in the middle of an engagement, the team has been fully
staffed, how will you provide support to your teammates;
c. When you receive a call from your client asking for explanation or breakdown of an
aggregate figure, but the breakdown of this figure contained competitor's information, the
competitor is one of GS' clients, how will you tell your client over the phone? You have to
make this decision without support from VP.
7. Understanding the Market / deals
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Sample interview questions
8. What do you think are going to be the two biggest events impacting the 2019 European M&A
market?
9. Tell me about a deal, in the best case one that Bank B participated in. Why that deal? Which teams
would you like to work for if you had the choice? (TMT, FIG...)
2019 Bank C, interview 1
1. Tell me about yourself
2. Why do you want to work at Bank C
3. Brief discussion of previous role (e.g. what did you do on this deal)
4. Technical questions: We have a German client looking to purchase a business in Turkey, what do
you consider/how do you approach this problem
5. How do you value the company
6. Details of DCF (e.g. what are your cash flows)
7. How do you calculate WACC, what risk free rate/market risk premium do you use in this example
8. In what instance can a terminal value be negative
2019 Bank C, interview 2
1. Same fit questions as above
2. Tell me about a deal you have followed recently, with follow up questions on financial/strategic
aspects
3. Discussion of market conditions, thoughts for the year ahead
4. Then a short informal conversation
2018 IBD Sample questions – mixed from different banks / different interviews
1. Walk me through the P&L of Tesco
2. What happens post interest line on the IS
3. What would you advise a client on mitigating interest rate risk _ leading up to swapping floating
into fixed rates
4. How would you value a swap
5. How do you modelling out depreciation and PP&E ?
6. If depreciation goes up by 10, what effect does it have on FS?
7. How would you account for investments of 20%?
8. What would you talk to a CEO of company X?
9. Talk me through the current economic environment in Europe / US
10. What are the implications of US tax reform, and how would you adjust your model ?
2018 Bank A: Interview 1
1. Why IB?
2. Why MBA?
3. Wasn't internal transfer in GS an option?
4. Why do you want to move from buyside to advisory now?
5. I buy machinery for cash for $800. Assume straight line depreciation in 20 years. At the end of
year 4, I sell it for $700 salvage value. Walk me through three financial statements.
6. Very simple LBO on paper. There is interest expense (the debt is not bullet) but no capex, D&A
or change in networking capital. Free cash flows used to pay back debt. MM comes out to be 1.5x
in 3 years. I was asked to estimate IRR and explain my reasoning.
2018 Bank A: Interview 2:
1. Company A has an EBITDA margin of 20%. Cost structure is 25% fixed, 75% variable. What
happens to their EBITDA margin if their topline grows by 10%? (No calculations allowed, tell
me on top of your head)
2. Now do the calculation and tell me the new EBITDA margin
3. What happens if their fixed cost margin goes up to 40%?
4. Company B has an EBITDA margin of 20% as well. Cost structure is 33% fixed, 67% variable.
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Sample interview questions
Everything else constant, which company would be worth more? A or B?
5. Classic BAML OpCo/MidCo/TopCo equity ownership structure question
2018 Bank A Interview 3:
1. When calculating unlevered cash flows, should we use EBIT*(1-t) or EBIT-tax expense for the
year? Which one is more appropriate, why?
2. What is a net operating loss? How does it affect valuation?
3. What discount rate do you use for NOLs?
4. Would you incorporate NOLs into your DCF? How?
5. What happens to my valuation if I assume zero capex?
6. You are meeting a CFO and you know nothing about the company. What documents do you go
through to get up to speed? (List as many as you can)
7. You are looking to spin-off a company's division and meeting the CFO, how do you put together
a deck?
8. IPO discussion materials: what would the "table of contents" look like?
2018 Boutique 1 – structure
· 1st round: fit and technical questions
· 2nd round includes building a three statement model from scratch
2018 Boutique 2 – structure
· 1st round: fit and technical question, including a deal / stock pitch
· 2nd round: includes a case study - choose a stock between the two options, given financial information
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Sample interview questions
Sample Markets Questions
2018 Markets Questions
· Name a growth stock / value stock, how would a company value a growth stock
· Ethics questions
2017 Different banks / interviews
1) Tell me about yourself
2) Be ready to talk about your CV/XP
3) Why LBS?
4) Why MBA / MiF?
5) What did you do at LBS? How did you contribute to the community?
6) Why Markets?
7) Why Bank X? (strong points for Bank X). Why Bank X vs Bank Y?
8) What department in Bank X?
9) Whom you met within Bank X? What did you learn from interactions?
10) What do you know about Bank X? (news, stock, PE, multiples, CEO, EMEA Head, Markets Head,
managers, latest financial reports, mission statement)
11) Recent trends in the industry (FIG, Markets, layoffs)
12) Tell me about:
a. Best achievement
b. Biggest failure
c. Negative feedback you got, negative feedback you gave
d. Leading a team / failure in leading a team
e. Biggest challenge
f. Managed upwards (!?)
g. 3 weaknesses
h. 3 strengths
13) Recent news (everything, but primarily focus on macro)
14) Stock pitch (2 ideas), what would you short (!?)
15) FX (fundamentals, drivers, last years performance), PPP, Covered, Uncovered, NFP, Interest rate
differentials, Current Account, FX Reserves, Political, Government deficit (e.g. Saudi Arabia). Main FX
Levels
16) Rates (fundamentals, drivers, last years performance). Curves (yield, spot, forward, swap).
Inflation - nominal, real interest rates, Govies vs Swaps. Main Swap levels
17) Credit (What rating would you put on the Euro Swap Curve?), Itraxx XOVER, Itraxx Europe Main,
AAAs, BBBs, B spreads, CDS of countries), CDO/CLO, Leveraged Loans, CDS)
18) Commodities (contango, backwardation, oil prices, gold prices, demand and supply)
19) Equities (DAX, FTSE, NASDAQ, valuations, disruptors, PE S&P 500)
20) Emerging Markets (FXLM)
21) What other jobs you are applying to? What will you pick? Why?
22) 6 questions to ask them (smart questions)
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