Finance Interview Questions: Sell-side

Hi guys hira here good afternoon um first of all apologies for um the horrible lighting in this space uh i have nowhere to go i’m actually in the stairwell and that that’s a ladder um but anyway i wanted to get this done so just bear with us um topic of this session is uh technical questions that are specific to investment banking interviews okay so finance sell

Side not buy side that’s covered elsewhere in another video so this is very much i banking either wall street firms or niche boutique investment banking firms okay all right so first of all um your interview will have usually three components the general questions like tell me about yourself um tell me about why you’re interested in investment banking why why

Do you want to work for our firm so those types of questions i’m not covering here they’re covered elsewhere you might also get behavioral questions tell me about a time you had a conflict with your boss tell me about a time you had to make a difficult decision again covered elsewhere so here i’m sticking to the technical component of your of your interview and

You’ll definitely have a technical component okay so here are a list of types of questions that you can expect so first of all valuation questions okay that’s probably going to be a pretty significant potion um so then make sure you know the different methods of valuing companies the most common one is the discounted cash flow dcf method so just you know how the

The methodology behind that um if i remember correctly you um forecast um free cash flow and then uh use a weighted average cost of capital okay so that that was super simplified but i mean make sure you can explain that in detail then there might be questions around um if if a company had to raise money raise capital then um the advantages and disadvantages

Of bonds versus equities okay so any any sort of capital raising activity and how best to what what um best financial tool to use and then um the third bucket of questions and i think again this is a predominant part is um the financial statements right so and knowing those cold so make sure that whatever you’re um they’re teaching you in your accounting class

That you know that really really well um the cash flow statement balance sheet and the p l and how these statements interact with each other and how uh if you make a change in one section how does that impact other sections okay um also uh if if a company did something specific say for example uh bought a piece of equipment then they might say walk me through the

Impact of that action on the cash flow statement the balance sheet and the piano uh fourth definition so whack weighted average cost of capital ebitda terminal value anything around you know very common concepts and terminology and asking you to define those finally uh modeling so they might say you know what what how would you set up a leveraged buyout model

How would you set up a merger model quick word about mergers and acquisitions usually questions around mna activity has to do with um whether you end up with an a higher or lower eps earnings per share post acquiring the new company that’s usually what they’re getting at with um merger questions okay i think i’ve covered um most of the big ones um uh the i would

Recommend going on vault koreabeam and also um investopedia these are good sites to go look up common investment banking questions

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Finance Interview Questions: Sell-side By Careerly