Case studies are an essential part of the interview process for investment banking positions. They allow interviewers to assess analytical and problem-solving skills in a real-world business context. Mastering case studies requires understanding typical frameworks, developing strong financial modeling abilities, and practicing sample cases. Approaching cases systematically, asking smart clarifying questions, and communicating conclusions clearly are key to success. With rigorous preparation, candidates can stand out by delivering polished, strategically-sound recommendations.
using the right frameworks is critical for investment banking case interviews
Investment banks often use standard frameworks for different types of cases. For M&A cases, the most common is a 3-part framework: strategic rationale, valuation, and execution. Strategic rationale focuses on business fit and synergies. Valuation involves DCF, comparable companies/transactions, and precedent transactions. Execution covers timeline, regulatory approvals, financing sources, and communication strategy. Other frameworks include Porter’s 5 Forces for industry analysis and SWOT for situation analysis.
financial modeling skills differentiate strong candidates
Being able to build flexible Excel models from scratch is expected in investment banking case interviews. Key skills include forecasting revenue growth, properly accounting for margins, calculating free cash flow projections, estimating WACC, and determining valuation based on DCF and multiples. Interviewers will assess modeling mechanics like structure, formulas, and output analysis. Advanced skills like sensitivity analysis, scenario modeling, and complex valuation adjustments further demonstrate technical proficiency.
practicing diverse cases develops problem-solving expertise
The best preparation involves reviewing actual cases from prior interviews and practicing them repeatedly. Cases can range from high-level strategic questions to detailed operational issues. Common topics include new market entry, M&A dilemmas, valuation challenges, financial restructurings, and growth strategy analysis. Working through diverse cases expands toolkits and builds pattern recognition. Resources like Rosenbaum & Pearl’s Investment Banking: Valuation, LBOs, M&A, and IPOs textbook provide a spectrum of sample cases with guides.
thoughtful communication of recommendations completes the case
Even with great analysis, success ultimately depends on convincing presentation and crisp communication. Prioritize conclusions upfront, walk through analysis at an appropriate pace, highlight key takeaways with visuals/data, and tie back regularly to strategic objectives. Anticipate questions and issues that may arise after presenting. Convey confidence through voice, eye contact, and body language. The case finishes strong with a clear, compelling recommendation to the imaginary senior leadership.
With structured frameworks, financial modeling expertise, extensive practice, and polished communication skills, candidates can tackle any business situation presented in investment banking case interviews. Preparation and poise under pressure are the keys to differentiating oneself and landing offers at top banks.