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Investment Banking Interview Questions (Only Focus On THESE in 2021) - YouTube
Channel: Tier 1 Wall Street
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in this video I'm going to show you the
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six types of investment banking
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interview questions you need to master
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before going into the interview these
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are the same six types of investment
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bank interview questions we have our
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students prepare form to maximize their
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chances of landing the internship or job
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and today I'm going to show you exactly
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how to go through each of these six
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types of invest baiting interview
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questions as well as some little note
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tricks to answer them the most
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effectively and the number one type of
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interview question you need to
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absolutely crush in the interview let's
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get started so with our first type of
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interview question here we have the
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technical questions now most people
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think that technical questions are the
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most important type of investment
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banking interview question but in
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reality that's not the case
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believe it or not as you'll see a little
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bit later on in the video it's really
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the behavioral that are the most
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important types that you need to
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absolutely crush the technical questions
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are really just more of a stamp to show
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that you know your stuff and they're not
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really a massive deciding factor in
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terms of whether or not you're going to
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get the internship or job now some firms
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place higher weight on technicals
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whereas others don't really even care
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about them anymore so when you walking
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into an investment banking interview you
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obviously want to make sure that you
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understand the technicals but again if
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the stuff that we'll discuss later on
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that's the most important in terms of
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getting you the actual internship or job
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so within the technical questions it's
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kind of broken down into a couple
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different categories so first we have
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the accounting type questions next we
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have our valuation based questions then
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every once a while you'll see some brain
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teasers and then lastly we'll have some
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more advanced types of questions which
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are model specific like your emanate
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modeling questions or your lbo type
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modeling questions so for our first type
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of techne
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Cole investment-banking interview
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questions we have the accounting based
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questions now we get a lot more in-depth
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in these in a video linked below but at
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a high level here's how they work the
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accounting questions probably represent
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maybe 75% of the technical interview
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questions you might get and the rest
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will probably be evaluation based maybe
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a couple brain teasers and maybe one on
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the advanced modeling like we'll discuss
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in a little bit now within the
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accounting based questions it really
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just revolves around your knowledge of
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the three financial statements so you
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know how to model and you know how to
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properly balance a full three statement
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model these should be relatively easy
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for you but if you're someone is trying
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to memorize them off of a guide or
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you're not very familiar with accounting
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you can get thrown off of these pretty
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easy because the interviewers will know
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how to kind of reward these a little bit
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differently just to throw you off in
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case you did memorize things so these
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questions could be things like this if a
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company's depreciation goes up by ten
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million dollars on the income statement
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how does that affect the other financial
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statements or if company a vice Company
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B how is goodwill involved in that or it
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could even be something easy like what's
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the most important financial statement
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so as long as you have a pretty good
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grasp on accounting you should be fine
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with these but if you're struggling with
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the accounting and you're not very
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familiar with a lot of this stuff this
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is what I would recommend you spending
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the majority of your time studying is
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the accounting based questions because
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like I said they'll probably take up 75%
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of the technical questions you might get
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in an investment banking interview next
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up for our technical questions we have
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the valuation based questions now the
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valuation based questions will probably
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take up around 25 percent of the
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technical investment banking interview
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questions you might get and these
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primarily revolve around your knowledge
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of how a discounted cash flow model
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works as well as how comparables
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analysis works in terms of different
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valuation methods now these can be
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questions like walk me through
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莽f or how do you calculate wack or if
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you are trying to value a chemicals
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company which valuation metric would you
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use and why and like I said before we
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get a lot more into these types of
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questions in the video linked below but
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as long as you are pretty familiar with
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how a DCF works and how to do a
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comparables evaluation analysis for
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different companies you should be fine
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with these so next up we have the brain
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teasers now these are a little more rare
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and you don't see them as often in terms
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of investment banking interview
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questions but every once in a while you
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will and the whole idea behind these is
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for people just to throw you off now
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brain teasers are kind of like this so
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for example if you had all the marbles
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in the world how many marbles would it
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take to fill up all the buildings in New
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York City now the way you want to
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approach these types of brain teasers is
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kind of like this so number one take
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some time to think about how you would
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actually answer this so you don't know
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how to answer it first that's totally
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fine you can literally say something
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like okay give me a second let me think
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about how I would approach this step two
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slowly talk about how you would come to
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your answer out loud again the whole
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point here is there them to throw you
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off and they also want to see how you
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think so as long as you're kind of
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composing yourself and slowly talking
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about how you'd come to the answer out
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loud that's all you need to do step 3
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don't really expect to get an exact
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answer again you know unless you have a
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lot of data in front of you you're not
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going to be able to figure out how many
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marbles are gonna fit in all the
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buildings in New York City unless you
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have the square footage and the volume
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of every single building so again you
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just want to basically tell them out
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loud of how you would come to the answer
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if you had all the information available
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and that's really all you got to do and
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again these questions can really very
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very and completely be all over the
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place don't let them throw you off take
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time to think about it and just slowly
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talk through how you would do it
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last but not least we have our advanced
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modeling based questions so these will
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primarily revolve around your knowledge
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of how and then a model might work or
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how an LBO might model write work and
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again these are the things you would
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expect in every single type of
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investment banking interview they might
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more occur when you know you're in a
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investigating interview for a M&A
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specific firm or you know you're at a
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private equity firm etc and you know
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these questions are kind of around
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things like how can you tell if a merger
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isn't creative or dilutive or if you're
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a private equity firm what are some
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characteristics you might look for in an
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acquisition target and why and again you
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know these aren't things that you really
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need to prepare for every single type of
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investment banking interview again if
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you're going for more of a an a specific
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firm or something like that where they
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have more of a niche in a strategy then
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yeah you might want to prepare for these
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types of questions but normally you
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don't need to expect this type of stuff
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so for our next type of investment
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banking interview questions we have a
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market based questions which is kind of
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a follow up to the technical interview
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questions we just went through and the
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whole idea behind these types of
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questions is for them to figure out how
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much you know about what's actually
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going on in the market now and these are
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things that can be related to interest
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rates what's going on with the Fed
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different types of earnings that might
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be going on IPO activity M&A activity
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things going on at a macro level or you
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know if you're interviewing for a
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commodity specific investment bank
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things like what's going on with oil
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prices and stuff like that and now this
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is just a matter of you being able to
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keep up with stuff for reading making
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sure you know what's going on and we put
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out a daily newsletter for a lot of our
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students which is pretty much like a
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sparknotes version of The Wall Street
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Journal but more in-depth on things that
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are actually important so if you're
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interested in subscribing to that it's
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called a breakfast check you can click
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the link below and literally read
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through 30 seconds of stuff in the
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morning to stay on top of things and
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that's really all you need to do and it
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may be prior to
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interview just dig a little bit more
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into the topics just so you're really
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really familiar with this type of stuff
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but beyond that as long as you're
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keeping up at the market you should be
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fine with these types of questions next
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up we have our experience based
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investment banking interview questions
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now here's the thing if you've actually
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made it to the interview then you're
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doing pretty good on the experience side
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of things
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because the number one factor in terms
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of actually getting at an investment
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banking interview in the first place is
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having relevant experience now in terms
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of these questions in the interview this
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is just kind of more stuff like walk me
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through your resume or they just might
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ask you more questions on some of the
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stuff you might have done in terms of
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things at school internships except you
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don't really need to over prepare for
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these it's just a matter of maybe
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telling them a little bit more about
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what you've done
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why etc and like I said before if you've
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got experience and you did good in the
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first place you're in the interview so
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obviously you did something right now
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what's really important here which is
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what I'm going to get into now is the
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uniqueness and personality types of
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questions so like I mentioned earlier
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there's one specific type of investment
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banking the interview question that you
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need to absolutely crush in the
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interview and that's this one so these
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are the personality uniqueness kind of
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story based questions now why is this so
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important it's so important because if
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you really really want to land the job
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or the internship you need to be unique
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you need to connect with the interviewer
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and you just need to do something that's
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gonna help you stand out and really make
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them remember you at the end of the day
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now we have a whole other video
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dedicated to the why investment
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interview question which you can click
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with the link below and this is
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extremely extremely important to really
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really nail down in the whole idea of it
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is you just really need to come up with
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some really weird and unique story that
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you can tell that's gonna one help you
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stand out to grab their attention right
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away and three just give them something
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that's gonna help them remember you
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later on so whether it's a story about
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some really famous person you met and
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how that lets you to invest in banking
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or maybe it's a story about your dad
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back in the day and the 80s and the junk
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bond era or something like that that's
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kind of how you got interested in dicks
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bait the space whatever it is you need
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to have a really really weird unique
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story that's going to help you stand out
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and really really make you seem like a
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much different candidate that all the
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generic answers they get half
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the time in this interview now besides
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that these types of questions really
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aren't even questions half the time this
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is just where you need to do a really
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really good job almost like sucking up
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and stroking these people's ego a little
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bit and again what you really want to do
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is you want to be able to connect with
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the interviewer so if you find out that
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the guy likes football go off on a
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tangent talking about football or if you
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found out that this guy played lacrosse
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and college and maybe you played the
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cross the college go talk about that
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whatever it is you need to find some
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sort of common ground or connection
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between you and the interviewer that's
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really really going to make them like
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you and really increase your chances of
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actually getting the job because half
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the time these investment banks are
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pretty much like a fraternity they have
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to like you to hire you no matter how
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smart you are or you know how
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experienced you might be if they don't
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like you they're not going to hire you
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and I've seen a lot of different cases
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where students that didn't have as
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strong as a background or didn't have
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those ideal internships get the job at
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the end of the day because they did a
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better job of connecting with the
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interviews or they had a better story so
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whatever it is if you know who you're
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interviewing with ahead of time make
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sure you've done some research on the
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person so you have really really good
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talking points with these people because
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like I said you need to have a really
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unique story and you have to really
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really be able to connect with these
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people because at the end of the day
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they're gonna hire the person that they
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like the most regardless of how much you
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might know in terms of the technicals
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next up we have our firm based
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investment bait interview questions now
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these don't come out as questions but
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it's really just more of you being able
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to show your knowledge of the firm and
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the whole idea here and what you really
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need to do is do some research on some
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of the deals that companies might have
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done recently so if you're interviewing
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for a healthcare team and an investment
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bank look at some of the healthcare
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deals they might have done so that way
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you could talk about them and have a
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really good conversation in the
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interview or if you know someone that
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actually works there be able to talk
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about that bring up that person but
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whatever it is you want to be able to
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show that you've done some research on
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the firm that deals the people whatever
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it is to show that you just didn't
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randomly apply to it and that you have a
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specific reason for applying for this
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job at this firm so that leads me into
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our last category here which are who you
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know types of questions now this will
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kind of go along with the question why
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do you Morgan why Morgan Stanley why
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Goldman Sachs etc and the whole idea
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with that question is for you to just
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name drop name drop name drop so if
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you're interviewing on a firm in a
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specific department you most definitely
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have better have network with someone in
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the department ahead of time the more
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people you know on the inside the better
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your chances of actually getting the job
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or the internship at the end of the day
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so if they ask you why JP Morgan you can
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go into a story about how you talk to
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so-and-so oh and they told you about
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deal a with Company B etc etc and you
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just tell start telling all these
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stories about these different people you
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talk to their experiences and why after
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hearing those stories you just knew that
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working at JP Morgan and Goldman Sachs
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would just be a perfect fit for you and
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again it's really really competitive
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when you're trying to get into a lot of
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these different Investment Banking jobs
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but your biggest advantage is your
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network and how many people you actually
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know on the inside if you've got five
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people pushing for you versus another
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student who may only have one the guy
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with the five people's probably got a
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better chance so the more you can
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name-drop and the more
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you have done with the networking ahead
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of time is going to greatly increase
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your chances of actually securing the
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internship and the job at the end of the
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day so just make sure that you have a
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bunch of different stories you can tell
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about the people that work there ahead
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of time and how you talk to them and you
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met them and that's kind of got what are
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you interested in investment banking at
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Guggenheim or whatever it is that's what
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you're gonna have to do to really really
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crush that answer if you found this
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video helpful feel free to subscribe to
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us or follow us by clicking the link
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below or hitting the like button if
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you're looking for more advanced
[959]
strategies like this or more strategies
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on different topics
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feel free to head over to our site at
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tier 1 Wall Street and subscribe to our
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newsletter or resend out strategies that
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aren't posted on the blog now I'm going
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to turn it over to you what other types
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of investment banking interview
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questions are you looking to absolutely
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crush in the interview are there other
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types of things that you would have
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liked us to expand on feel free to let
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us know by commenting below
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