Getting a job in investment banking is extremely competitive. Candidates need to demonstrate strong technical skills in accounting, financial modeling and valuation as well as excellent communication and interpersonal abilities. The ‘400 Questions Investment Banking’ book has become an essential resource for candidates preparing for investment banking interviews as it covers the most common technical and behavioral questions asked. This article summarizes key insights from the book and provides tips on how to thoroughly prepare for these critical questions.
Technical questions test fundamental finance knowledge
A significant portion of investment banking interviews will include technical questions on accounting, valuation, mergers & acquisitions and other finance topics. These aim to assess a candidate’s foundational knowledge and test whether they can think through problems logically and arrive at the right solution. ‘400 Questions Investment Banking’ dedicates nearly half the book to technical concepts and includes everything from basic accounting principles to complex LBO models. Candidates should master all sections and learn how to walk through multi-step technical problems as interviewers may probe deeply on any topic.
Behavioral questions evaluate soft skills & motivation
In addition to technical expertise, investment banks seek candidates with polished interpersonal skills who can work well in teams and with clients. Behavioral questions allow interviewers to evaluate soft skills and assess motivations for joining banking. ‘400 Questions’ compiles commonly asked behavioral questions on leadership, teamwork, overcoming challenges, handling mistakes, greatest strengths/weaknesses and reasons for pursuing investment banking. Preparing stories from internships, classes and extracurriculars that highlight desired traits is essential. The most compelling answers will come across as genuine rather than rehearsed.
Practice extensively with partners
Simply reading ‘400 Questions Investment Banking’ is not enough – candidates must practice articulating answers aloud. Forming a study group to do mock interviews can expose gaps in knowledge and improve delivery of answers. Record practice interviews and review to refine content and polish presentation. While technical grounding comes from understanding the concepts, nailing the behavioral aspects requires thoughtful self-reflection and crafting unique stories that make you stand out.
Customize responses using research
Candidates should tailor responses to each bank by researching their culture, specialties and recent deals. Asking informed questions demonstrates sincere interest. Avoid generic answers – instead relate your background to what makes that bank unique. Research will also allow you to incorporate relevant facts into technical walkthroughs. Preparation should be comprehensive – assume the ‘400 Questions’ material along with your own customized research form your baseline knowledge.
Thorough preparation using comprehensive resources like ‘400 Questions Investment Banking’ and extensive practice will help candidates confidently tackle technicals and differentiate themselves through thoughtful behavioral responses tailored to each bank.