The investment banking recruitment process is highly competitive, with 60%-80% candidates eliminated after the first round. Only 5%-10% can make it to the final round. To stand out, candidates need to prepare thoughtfully for each interview round. Relying solely on standard Q&A templates often backfires. This article summarizes practical strategies and mindsets to tackle common investment banking interview questions. With insights into competency, technical, case and group interview tactics, you can better showcase your potential and thinking process. Multiple examples are provided, covering everything from deal experience to stock pitches. By internalizing these investment interview tips, you can move beyond rote responses and have genuine conversations that impress recruiters. With the right preparation, persistence and skills, top investment banking offers are within reach for all driven candidates.
Master storytelling to narrate resume and experience highlights
The resume walkthrough is one of the most frequent investment banking interview questions. Interviewers may ask you to talk through your whole resume chronologically, or dive deep into certain experiences like past internships. Avoid rambling through a timeline of facts. The key is crafting a compelling narrative arc highlighting your most relevant achievements, skills gained, and interest in the field.
One effective structure is organizing by strengths and interests tied to investment banking. For example: “I developed strong leadership experience as president of the consulting club, which sparked my interest in client-facing roles. This led me to pursue investment banking internships to build technical skills like modeling, which I leveraged extensively when supporting a healthcare M&A deal. The complex diligence and industry analysis strengthened my desire to continue in healthcare investment banking long-term.”
Prepare 2-3 anecdotes illustrating each major resume point. Brainstorm questions the interviewer may ask and how your experiences link. Know key deal facts like parties, pricing, investment thesis, and your specific contributions. This deep knowledge enables specific, memorable stories even when asked unexpected questions.
Research the firm and interviewers to personalize questions
Many candidates cram investment banking interview questions without considering the specific firms or interviewers they’ll meet. But customizing your preparation can give a huge edge. Thoroughly research the firm’s website, news articles, client industry focuses, recent deals, office locations, company culture and more. This allows you to tailor questions demonstrating your interest.
Likewise, learn about your interviewers through LinkedIn or networking. Ask smart questions about their education, career progression, current role and responsibilities, industry focuses, market outlooks, memorable deals, etc. This personal touch makes you stand out. The more you can engage interviewers based on their interests and experiences, the better chance you have of building rapport.
Come prepared with at least 5 potential questions for each of your interviewers. Jot these down in your notes to refer to. Smart, customized questions indicate care and preparation beyond rote responses.
Master technical and accounting fundamentals
You must know the core accounting, corporate finance and valuation concepts tested repeatedly in investment banking interviews. Common technical questions cover WACC, APV, LBO models, DCF, comps, trading comps, precedent transactions, DDMs and more. Solid math skills are a must.
The 400 Investment Banking Interview Questions & Answers guide by Avocado Research is a good starting point to identify knowledge gaps. However, avoid memorizing answers verbatim – recruiters can often tell when candidates regurgitate responses. Thoroughly understand the logic and practical use cases behind formulas. Resources like Training The Street, WSO, and BIWS offer more advanced prep with example technical walkthroughs.
Beyond rote technical knowledge, interviewers want to see your problem-solving process. Think through issues logically step-by-step. Ask clarifying questions if needed, and highlight any assumptions made. Getting the exact right answer matters less than demonstrating strong analytical thinking.
Anticipate case and behavioral interview questions
In addition to technical questions, expect to get case questions testing your business judgement and behavioral questions assessing your personality fit. Common examples include stock pitches, M&A scenario analysis, brainstorming business growth options, and past experience questions like “Tell me about a time you influenced a team” or “Describe a conflict you faced.”
Treat cases as business problems to methodically analyze instead of getting intimidated by the unpredictability. Clarify the objectives, gather key info, outline 2-3 hypotheses, recommend actions backed by data, and tie back to goals. For behaviorals, prepare 8-10 stories highlighting relevant skills like communication, leadership, teamwork, perseverance, attention to detail, etc. Reflect on real examples instead of making up responses. Practice telling them concisely and confidently.
Perform multiple full interview simulations with peers to polish your delivery. The more practice you get, the more natural and thoughtful your responses will become over time. Look online for common case and behavioral questions banks to test yourself on a wide variety.
With rigorous preparation, candidates can develop winning investment banking interview skills to showcase their potential beyond rote responses. Focus on telling compelling stories about your experiences, customizing questions based on research, mastering technical fundamentals, and sharpening case and behavioral responses. As you internalize tips through repeated practice, you will enter interviews with the confidence and thinking skills needed to have thoughtful discussions that impress recruiters. Remember that persistence is key – reflect on feedback and keep working to develop the knowledge and mindsets required for investment banking success.