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Investment banking interviews are often very technical, testing you on financial concepts not taught in the classroom. The Finance Interview Coach Resources page was created to offer candidates with additional resources to assist in preparing for their interview.

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How do you choose a projection period in the DCF?

Typically, you project 5-10 years because it’s expected that the company will be a mature company after the projection period. Also, it’s often very difficult to project beyond that. Once the company is mature, we can apply a terminal value.

What makes a good investment thesis?

A good investment thesis should present several solid and unique explanations of why this company would be a good investment. Some examples of drivers include ●A M&A roll-up strategy that is looking to buy companies at cheap multiples to accelerate growth ●Efficiency initiatives that seek to eliminate expenses which do not add value The key […]

Why not private equity?

Although some candidates may be interested in private equity, it’s important to speak to your interest in investment banking. The focus should be talking about all the advantages of investment banking, rather than talking about the disadvantages of private equity. For example, maybe you enjoy the client presentation aspect of investment banking, which requires you […]

What are some driving factors behind mergers and acquisitions? Why do mergers and acquisitions happen?

Strategic Financial sponsors / private equity: buying businesses with significant debt to amplify return for investors and reduce initial equity investment

Why do you REALLY want to do investment banking?

Sometimes firms will ask this same question again to dive into your real intentions, especially in superdays. Stay calm, and explain your points perhaps in a different manner, showing how you’re hungry and eager to learn and that’s what drives you. You can be more honest in this answer, but once again, focus on what […]

If we are the private equity firm, when should we use management assumptions / projections in an LBO model? When shouldn’t we?

It’s important to due diligence management projections as they tend to be overly optimistic. On the revenue side, each growth opportunity can be evaluated by examining the assumptions driving each growth opportunity. For example, if the company wants to increase penetration in an existing geography, it’s worth understanding the density of their current presence in […]