Investment Banking Interview Guide-Investment Banking Prep

Example

Explaining how depreciation affects all three financial statements

Scenario

A candidate is asked during an interview how a $10 increase in depreciation would impact the income statement, cash flow statement, and balance sheet. The guide provides a structured answer, including the tax shield benefit on the income statement, the add-back on the cash flow statement, and the reduction in net income and corresponding asset value on the balance sheet.

Example

Crafting stories that showcase key skills like teamwork, leadership, and analytical thinking

Scenario

A user is preparing for the 'Tell me about a time when...' questions. The guide offers frameworks for structuring responses that highlight the candidate's contributions and learnings in past experiences, ensuring they demonstrate the qualities investment banks seek.

Example

Walking through a Discounted Cash Flow (DCF) analysis

Scenario

Candidates learn how to project free cash flows, determine the discount rate using WACC, calculate terminal value, and ultimately, value a company. The guide offers an example using a lemonade stand to simplify the concept, making it easier to understand and apply in real interviews.

Example

Understanding and discussing major industry trends and their impact on investment banking

Scenario

A section dedicated to industry-based questions helps candidates form educated opinions on current events, such as the implications of regulatory changes on mergers and acquisitions. This prepares them to engage in meaningful discussions with interviewers about the state of the industry.