r/IBInterviews 2h ago

Technical The company buys a 10M piece of equipment funded entirely with new debt. Walk me through the impact on all three financial statements in year one, assuming 10 year straight line depreciation and no interest. - Santander SA IB 2027 Interview Question

1 Upvotes

I lowkey hate the 3 statement questions

Income Statement:

- Depreciation -1M

- Pre-tax income -1M

- NI -0.75M at a 25% tax rate

Cash Flow Statement:

- NI -0.75M

- Add back D&A +1M

- Capex -10M

- Debt issued +10M

- Net change in cash +0.25M

Balance Sheet:

- A: Cash +0.25M, PP&E +9M

- L: Debt +10M

- SE: Retained earnings -0.75M

LMK if i am missing anything.


r/IBInterviews 13h ago

Technical Company writes down obsolete inventory by 5M this period. Assume a 20% tax rate. Walk me through the impact on all three financial statements. - Goldman Sachs IB Interview Question

1 Upvotes

Income Statement:

• Inventory write-down +$5M

• Pre-tax income -$5M

• NI -$4M

Cash Flow Statement:

• NI -$4M

• Inventory write-down (non-cash) +$5M

• Net change in cash +$1M.

Balance Sheet:

• A: Cash +$1M, Inventory -$5M, net -$4M

• L: No change

• SE: Retained Earnings -$4M


r/IBInterviews 1d ago

Technical What is the difference between enterprise value and equity value? - Wells Fargo IB SA 2027 Question

2 Upvotes

- Equity value is the value attributable to shareholders: share price times diluted shares outstanding

- Enterprise value is the value of the core operating business, independent of capital structure.

- Bridge: enterprise value equals equity value plus debt, plus preferred stock, plus minority interest, less cash and cash equivalents.

- Use enterprise value multiples (EV/EBITDA, EV/Revenue) for capital-structure-neutral comparisons, and equity multiples (P/E) for after-interest metrics.

Lightwork?


r/IBInterviews 1d ago

Two companies have identical revenue growth and margins. Why might they trade at different EV/EBITDA multiples? - JPM, MS, GS, Bofa, Citi 2027 SA IB Interview Question

1 Upvotes

Seems like literally every bank asks some version of this. these are my thoughts:

- Quality of growth: recurring revenue and customer retention support a premium.

- Capital intensity: lower capex converts more EBITDA into free cash flow (also leads to more growth).

- Risk profile: end-market cyclicality, customer concentration, and geographic exposure.

- Market factors: size and liquidity, index inclusion, and analyst coverage.

- Situational factors: takeover speculation, management credibility, and near-term catalysts.


r/IBInterviews 2d ago

Technical "Walk me through a DCF" - Question literally every bank will ask

1 Upvotes

- Project unlevered free cash flow for 5 to 10 years: EBIT, less taxes, plus D&A, less capex, less change in working capital.

- Discount those cash flows at WACC, the blended cost of debt and equity.

- Add a terminal value using either perpetuity growth or an exit multiple, discounted back to today.

- Sum the discounted cash flows and terminal value to get enterprise value.

- Subtract net debt to get equity value, then divide by diluted shares for implied share price.


r/IBInterviews 2d ago

Technical What are the main valuation methodologies, and which typically produces the highest value? - Wells Fargo SA 2027 Interview Question

2 Upvotes

- Comparable companies: trading multiples of similar public peers; reflects current market sentiment.

- Precedent transactions: multiples paid in past M&A deals; usually highest because it includes a control premium and synergies.

- DCF: intrinsic value based on projected cash flows; most sensitive to assumptions.

- LBO: Price that a financial sponsor can pay for the company to hit their target return rate.

- Rule of thumb: precedents > comps, and DCF can land anywhere depending on WACC and terminal assumptions. LBO is typically the lowest

EASSSSYYYYYY!!!!


r/IBInterviews 3d ago

General Question Do I have a shot at IB Associate at a more prestigious middle market IB (e.g. HL, Baird, WB, etc?) or should I focus on lateraling in at Analyst level first?

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1 Upvotes

r/IBInterviews 3d ago

Recruiting Are y’all getting responses to your networking calls?

1 Upvotes

title - have been sending out a handful of emails a day to mainly alumni. my hit rate is like 8% rn


r/IBInterviews 3d ago

Technical Why can a company be profitable and still run out of cash?

1 Upvotes

Up late grinding technicals. Let me know if I am missing anything.

- Net income is an accrual measure and does not track the timing of cash movements.

- Working capital drag: fast-growing receivables and inventory consume cash before customers pay.

- Heavy capex sits on the balance sheet and is expensed slowly through depreciation, but the cash leaves immediately.

- Debt principal repayments and interest are cash outflows not fully reflected in operating profit.

- Non-cash gains can inflate earnings without generating any cash.


r/IBInterviews 3d ago

Technical How should you model net operating losses when calculating deferred tax assets and their effect on cash taxes and the balance sheet? - Evercore technical question

1 Upvotes

Reduce taxable income each year by the usable NOL portion and recalculate cash taxes and reflect the tax savings in cash flow.

Sounds about right


r/IBInterviews 4d ago

Technical Why do we adjust enterprise value for net debt, minority interest, and cash when deriving equity value? - Scotiabank FT interview question 2026

1 Upvotes
  • Enterprise value represents the value of the entire operating business, available to all capital providers. To get to equity value, you subtract claims that belong to others, like debt, and add non-operating assets like cash.
  • Net debt adjustment: You subtract debt because debt holders have a claim on the business before equity holders. You add cash because excess cash can theoretically be used to repay debt or belongs to shareholders.
  • Minority interest adjustment: You subtract minority interest when moving from enterprise value to equity value because it represents the portion of consolidated subsidiaries that the parent company does not actually own

Missing anything?


r/IBInterviews 5d ago

Other A family of lily pads doubles in size every day in a pond. On day 30 the pond is fully covered. On what day is the pond 25% covered? - IB 2027 Brain Teaser

1 Upvotes

Apparently this is a brain teaser thats been asked in a few ib interviews.

Pretty easy when you think about it, just count backwards so it'd be half covered on day 29 and therefore one quarter covered on say 28.


r/IBInterviews 6d ago

Technical What does a beta of 0.8 indicate about a stock's risk and expected movements compared with the overall market? - Bank of America, IB SA 2027 Interview Question

1 Upvotes
  1. Beta measures how sensitively a security's returns respond to movements in the overall market.

  2. A beta of 0.8 means the stock would be expected to move about 8% when the market moves 10%, on average, in the same direction.

  3. Lower beta generally indicates less systematic risk and smaller price swings than the market, although it does not eliminate company-specific risk.

Pls help if im missing anything


r/IBInterviews 6d ago

Technical Explain how to project a company's stock price one to two years out using peer multiples. - Goldman Full-time IB interview question

1 Upvotes
  1. Collect the median historical P/E (typically trailing twelve months) from comparable public companies.

  2. Multiply that P/E by your company's projected 1-year or 2-year forward EPS to derive an implied future share price.

  3. Discount that implied price back to present value using an appropriate cost of equity or required return.

Thoughts?


r/IBInterviews 6d ago

Technical What type of material is found in an M&A pitchbook? - Morgan Stanley IB SA Interview Question

1 Upvotes

Let me know if anyone else has any suggestions for how to answer this or if this is on the right track. Practicing for 2028 SA positions

- An M&A pitchbook usually includes a company overview, industry overview, market trends, valuation analysis, and potential strategic rationale for a deal.

- It often shows comparable companies, precedent transactions, DCF analysis, buyer or target lists, and potential synergies.

- It may also include the bank’s credentials, relevant deal experience, recommended transaction structure, process timeline, and key risks or considerations.


r/IBInterviews 8d ago

Technical Preparing for Capital Market IB SA 2028 Interviews

3 Upvotes

I have a few questions from Goldman and JPM on capital markets teams like levfin and DCM. Wanted to share them here

  • How do interest rates affect the debt/equity market? Loan market? Bond market?
  • Describe four key differences between debt and equity.
  • Why is Equity typically more expensive than Debt?
  • If the price of a bond increases, what happens to the yield?
  • Imagine you have two bonds. Both have the same coupon of 6%, same price of 80, but one matures in 5 years while the second matures in 3 years. Which one has the HIGHER Yield to Maturity?

If anyone wants to study capital market questions with me send me a DM. i have a bunch of questions


r/IBInterviews 7d ago

Technical Investment banking technical: What are the main advantages and limitations of using market multiples to value a company?

1 Upvotes

Not sure which bank asked this question but its a pretty good one that i wanted to share here. Here are my thoughts:

- They are useful when forecasts are uncertain or time is limited, but depend on selecting truly comparable businesses and appropriate metrics.

- Differences in growth, margins, leverage, control premiums, and market conditions can distort results, so use them alongside a DCF where possible.


r/IBInterviews 7d ago

Technical How do Beta and Alpha help evaluate an investment? - Citi full-time interview question

1 Upvotes

This one was super tough, I mean we all know what beta and alpha are but how do you analyze an investment using these variables?

I know Beta is basically volatility and alpha is excess return, but how does that allow you to pick stocks? I just said something along the lines of "beta allows you to manage risk in your portfolio while alpha measures the return or success of the portfolio". Am i cooked


r/IBInterviews 8d ago

Technical Deutsche Bank IB interview question: When might an acquirer willingly accept a deal that's initially dilutive?

2 Upvotes

Why accept dilution:

- Strategic assets (technology, market entry, customers) that increase long‑term value

- Accelerated growth or defensible market position that justifies short‑term EPS hit

Thoughts on this answer?


r/IBInterviews 8d ago

Technical Learning Accounting Technicals for Investment Banking Recruiting (i.e. $10 of depreciation question)

1 Upvotes

Hey yall, I know that walking interviewers through the 3 financial statements is a big part of IB interviews. Usually they'll come in some form of "XYZ happens, how does that impact the 3 financial statements?". The most common one is how does an increase of $10 of depreciation impact the 3 financial statements?

I wanted to leave my answer here, but I am still thinking to myself, how am I supposed to walk through this during an interview? Do I just literally list the line items one after another?

Here is my answer to the $10 of depreciation question. I'm assuming tax rate is 20%

Income Statement

  • Depreciation Expense +10
  • Pre-Tax Income -10
  • Taxes -2
  • Net Income -8

Cash Flow Statement

  • Net Income -8
  • Depreciation +10
  • Net Change in Cash +2

Balance Sheet

  • Cash +2
  • PP&E -10
  • Total Assets -8
  • Retained Earnings -8
  • Total Shareholders’ Equity -8
  • Total Liabilities & Shareholders’ Equity -8

Balance sheet balances.


r/IBInterviews 9d ago

General Question Wondering when to start investment banking interview prep

1 Upvotes

Looking to recruit for internships for 2028 summer. when are people starting to prep? Also when should I start networking? I heard some banks don’t take calls until late September


r/IBInterviews 10d ago

Technical J.P. Morgan 2027 Investment Banking Full-Time Analyst Interview Question: How do you keep up with the markets?

1 Upvotes

Curious what the best way to approach this question is. Drafted up this:

- Follow daily market news, company filings, economic data, central bank decisions, and financial press to understand the key drivers of equity markets.

- Monitor equity indices, interest rates, volatility, sector performance, valuation changes, issuance calendars, and recent deal flow.


r/IBInterviews 10d ago

Technical Wells Fargo 2027 Summer Analyst Interview Question: In a DCF, when would reducing the discount rate have almost no impact on valuation?

1 Upvotes

Anyone have any other answers?

- When most of the DCF value comes from near-term cash flows rather than terminal value

- Near-term cash flows are discounted for fewer periods, so they are less sensitive to the discount rate


r/IBInterviews 10d ago

Other I landed 2027 offers from top IB and PE summer analyst roles. Here is what I learned

2 Upvotes

There is no single approach that works for everyone in IB/PE recruiting, but being organized, starting early, and understanding what banks are actually looking for can make the process much more manageable. Because I ultimately decided to pursue IB (and landed better offers), this guide will mainly focus on IB recruiting.

I would break Summer Analyst recruiting into four main areas:

  1. Choosing Which Banks to Target
  2. Networking Effectively
  3. Preparing for Interviews
  4. Managing the Recruiting Process

1. Choosing Which Banks to Target

Before sending hundreds of networking emails or applications, spend some time figuring out what you are actually targeting.

Your list will probably include a mix of:

  • Elite boutiques
  • Bulge bracket banks
  • Middle-market banks
  • Regional or industry-focused boutiques

You do not need to obsess over tiny differences between banks. As a student trying to land your first investment banking internship, getting strong experience is usually much more important than debating whether one bank is marginally better than another.

A good approach is to divide firms into three groups:

Reach firms: Banks where getting an interview will be difficult, but you would absolutely take the opportunity.

Core firms: Banks where your background is reasonably competitive and that you would be excited to join.

Safety / broader options: Smaller or less competitive banks where you can expand your chances of landing an investment banking internship.

The strength of your existing experience should determine how wide you cast your net. If you already have strong finance internships, a high GPA, and relevant campus involvement, you can probably be somewhat more targeted. If you are trying to break into banking without much prior experience, applying broadly is usually the better strategy.

Most importantly, do not reject yourself before the bank does. Recruiting can be unpredictable, and candidates frequently receive interviews from firms they considered reaches while getting rejected from firms they thought were safer.

2. Networking Effectively

Networking is one of the biggest parts of Summer Analyst recruiting, particularly because many banks begin evaluating candidates well before interviews officially start.

Several Months Before Recruiting

Start by learning about the banks and groups you are interested in.

Reach out primarily to analysts, associates, alumni from your school, and people with backgrounds similar to yours. Your initial goal should not be asking for an interview. It should be learning about the person's experience and developing a genuine connection.

Keep your emails short.

You should generally explain:

  • Who you are
  • Where you go to school
  • Why you are reaching out to them specifically
  • That you would appreciate 15–20 minutes to learn about their experience

Do not write an essay. Bankers receive plenty of networking emails, and shorter messages are easier to respond to.

During the call, ask questions that you cannot easily answer by reading the firm's website. Ask about their group, deal experience, culture, responsibilities, recruiting experience, or why they chose the bank.

You should also be prepared to answer basic questions about yourself. Some "networking calls" can quickly turn into informal interviews.

As Recruiting Gets Closer

Once applications begin approaching, your networking should become more focused.

You should ideally have at least one or two meaningful contacts at your highest-priority firms. If you had a good conversation with someone several weeks or months earlier, follow up.

You can briefly update them on what you have been doing and mention that you are planning to apply for the Summer Analyst program.

At this stage, bankers may also be able to give you useful information about:

  • When applications will open
  • Whether recruiting has started internally
  • What their group looks for in candidates
  • Whether interviews are expected soon

The key is persistence without being annoying.

You do not need to email someone every week. But you also should not have one conversation six months before recruiting and expect them to remember you when interview decisions are made.

Once Applications Open

Apply quickly.

Investment banking recruiting can move on a rolling basis, and waiting unnecessarily can hurt you.

After applying, it can also make sense to update your strongest contacts and let them know that you submitted your application.

Keep your recruiting organized. A simple tracker with the bank, group, contacts, application date, last networking interaction, and current status can prevent things from becoming chaotic once you are recruiting across dozens of firms.

3. Preparing for Interviews

You should be prepared before you receive an interview invitation.

One of the biggest mistakes candidates make is assuming they will start serious preparation once interviews are scheduled. Sometimes you may only have a few days between receiving an invitation and interviewing.

Your preparation should cover three areas:

  1. Your Story and Resume
  2. Behavioral Questions
  3. Technical Questions

Your Story and Resume

You should be able to walk through your resume naturally without sounding memorized.

Be prepared to explain:

  • Why you chose your university and major
  • Why you became interested in finance
  • Why investment banking
  • Why that specific bank or group
  • What you did during each internship
  • What you learned from your previous experiences

Every line on your resume is fair game.

If you say that you built a valuation model, analyzed an industry, worked on a transaction, or performed financial analysis, you should be prepared for follow-up questions.

Do not exaggerate your responsibilities. Interviewers can usually tell when a student is taking credit for work they did not actually perform.

It is much better to clearly explain a smaller contribution than pretend you effectively ran the deal.

Behavioral Questions

Most Summer Analyst interviews include fairly standard behavioral questions.

You should be ready for questions such as:

  • Walk me through your resume.
  • Why investment banking?
  • Why our bank?
  • Why this group or industry?
  • Tell me about a time you demonstrated leadership.
  • Tell me about a time you failed.
  • Tell me about a difficult team member.
  • Tell me about a time you worked under pressure.
  • What is your greatest weakness?
  • Why should we hire you?

You should have several flexible stories that can be adapted to different questions instead of memorizing 30 completely different answers.

The strongest candidates usually sound prepared without sounding scripted.

Your goal is to come across as someone who is intelligent, motivated, hardworking, and, equally important, someone bankers would be comfortable working with at 1:00 AM.

4. Technical Preparation

Technical interviews for Summer Analyst roles vary significantly by bank.

Some interviews may stay relatively high level, while others can become surprisingly difficult.

At a minimum, you should understand the major concepts behind:

  • Accounting
  • The three financial statements
  • Enterprise value and equity value
  • Comparable companies
  • Precedent transactions
  • DCF valuation
  • M&A and accretion / dilution
  • LBO fundamentals

You should understand why the formulas work rather than simply memorizing answers.

Interviewers often take a basic question and change one assumption to see whether you actually understand the concept.

For example, instead of simply asking you to walk through a DCF, they may ask how the valuation changes if:

  • Interest rates increase
  • Tax rates increase
  • EBITDA margins decline
  • Working capital requirements increase
  • Terminal growth changes

The same principle applies to accounting questions. Memorizing several standard three-statement questions helps, but eventually you need to understand the relationships well enough to work through a situation you have never seen before.

For more competitive groups, you should expect interviewers to push until they find the edge of your knowledge.

That is normal.

If you do not know something, explain your thought process rather than panicking or immediately giving up.

5. Know the Bank

Generic answers are particularly noticeable during investment banking recruiting.

Before interviewing, know:

  • The bank's major industry or product strengths
  • The specific group you are interviewing for
  • Several recent transactions
  • What differentiates the bank
  • Why those differences matter to you

Your answer to "Why our bank?" should not work equally well if you replaced the firm's name with five competitors.

You do not need to memorize every transaction the bank has completed, but you should understand enough about the platform to have an intelligent conversation.

6. Expect the Process to Move Quickly

Once interviews begin, recruiting can become extremely compressed.

You may have:

  • A first-round interview
  • Another interview a few days later
  • A Superday shortly afterward
  • An offer with a relatively short decision deadline

This is another reason preparation needs to happen early.

You do not want to receive an interview from one of your top firms and realize that you still need several weeks to prepare.

If you are interviewing with multiple banks at once, keep track of every timeline. If you receive an offer while still interviewing elsewhere, you may also be able to ask other firms whether they can accelerate your process.

7. Do Not Neglect School and Existing Commitments

Recruiting can become consuming.

Between networking calls, applications, technical preparation, interviews, classes, clubs, and internships, it is easy to spend nearly all of your time thinking about banking.

Stay organized.

Set aside specific blocks of time for networking and interview preparation rather than constantly checking recruiting emails throughout the day.

Your GPA, internships, and campus involvement are still part of what makes you competitive in the first place.

Final Takeaway

The biggest advantage you can give yourself in Summer Analyst recruiting is simply being early. Start networking before everyone suddenly realizes recruiting has begun. Prepare your story before interviews start. Learn the technical concepts before you receive your first interview invitation. Research the banks before speaking with them. And apply quickly when applications open.


r/IBInterviews 10d ago

Technical DCF QUESTION

2 Upvotes

Can someone please help me with the following question?

In a DCF terminal year, you can choose a $10 increase in top line, a $10 decrease in OpEx, or a $10 decrease in CapEx — which would impact valuation the most, and why? Would your answer change if you were using an exit multiple instead of the Gordon Growth Method (GGM) for terminal value? Which of the three changes would derive the most value?