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Finance

Investment Banker Interview Questions

An Investment Banker advises companies on mergers, acquisitions, capital raising, and other strategic financial transactions. Interviewers look for deep knowledge of valuation methodologies, strong financial modeling skills, the ability to work under intense pressure with tight deadlines, and polished communication skills for client-facing interactions.

Questions
24
Behavioral
16
Technical
8
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Behavioral interview questions

16 questions that assess your experience, judgement and how you work with others

Question 1Investment Banker

Tell me about a time you worked on a deal or project with an extremely tight deadline.

Question 2Investment Banker

Describe a situation where you had to manage a difficult client relationship.

Question 3Investment Banker

Give an example of when you had to juggle multiple projects simultaneously.

Question 4Investment Banker

Tell me about a time you made a mistake in your work. How did you handle it?

Question 5Investment Banker

Describe a time when you had to persuade a team to adopt your recommendation.

Question 6Investment Banker

Tell me about a time you went above and beyond for a client or on a project.

Question 7Investment Banker

Give an example of how you handled constructive criticism from a senior banker.

Question 8Investment Banker

Describe a situation where you identified a risk that others on the deal team had not considered.

Question 9Investment Banker

Tell me about a time you had to learn a new industry quickly for a transaction.

Question 10Investment Banker

Describe a time when you had to communicate bad news about a deal's progress.

Question 11Investment Banker

Give an example of when you built a strong working relationship with someone from a different team or function.

Question 12Investment Banker

Tell me about a time you improved a process or workflow on your team.

Question 13Investment Banker

Describe a situation where you had to work effectively with someone whose working style was very different from yours.

Question 14Investment Banker

Tell me about a time you demonstrated attention to detail that had a material impact.

Question 15Investment Banker

Give an example of how you prioritize tasks when everything seems equally urgent.

Question 16Investment Banker

Why investment banking, and why this firm specifically?

Technical and role-specific questions

8 questions that test your domain expertise and technical knowledge

Question 17Investment Banker

Walk me through a DCF analysis step by step.

Question 18Investment Banker

How would you value a company with no earnings or negative cash flow?

Question 19Investment Banker

What is an LBO model and how does it work?

Question 20Investment Banker

Explain the difference between enterprise value and equity value.

Question 21Investment Banker

If a company you are valuing has a large off-balance-sheet liability, how would you account for it?

Question 22Investment Banker

What are the main methods for valuing a company, and when would you use each?

Question 23Investment Banker

How does an increase in depreciation affect the three financial statements?

Question 24Investment Banker

What is accretion/dilution analysis and when is it used?

Investment Banker interview tips

  • Be ready to discuss recent M&A transactions and IPOs in the sectors relevant to the firm, including deal rationale and approximate valuations.
  • Practice building a quick DCF and LBO model from scratch under time pressure, as technical modeling tests are common in interviews.
  • Prepare a concise and compelling answer for 'Why investment banking?' that connects your specific skills and interests to the demands of the role.
  • Demonstrate that you understand the lifestyle demands of the job and have a realistic perspective on the hours and intensity involved.
  • When discussing deals you have worked on, focus on your specific contribution and what you learned, rather than just describing the transaction at a high level.

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How to prepare for Investment Banker interview questions

Use these questions to choose relevant examples from your own experience, then practice explaining your decisions and results out loud. The question bank is a preparation resource; your interviewer may ask different questions. Example answers illustrate an approach and should be adapted to your experience.

  1. Review the job description and identify the skills and responsibilities the interview is likely to assess.
  2. For behavioral questions, use STAR: explain the Situation, your Task, the Action you took, and the Result. Be specific about your own contribution.
  3. For technical questions, clarify assumptions, explain your reasoning, and discuss alternatives and tradeoffs.
  4. Practice one answer, review the feedback, and try again with a clearer explanation or stronger evidence.

Questions are free to browse. Sign in with a free account to read the full example answers. For more guidance, read our guide to interview stories or review how interview feedback is scored.