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IB Interview Guide, Module 3: How to Prepare for and Answer “Fit”
Questions in Interviews
Table of Contents:
How to Prepare for “Fit” Questions in 3 Simple Steps ...................................1
Preparing Your 3 Short Stories ...................................................................3
Selecting Your 3 Strengths and 3 Weaknesses ...........................................6
Figuring Out Your “Real” Weaknesses .....................................................13
Teamwork and Leadership Questions & Answers .......................................21
Strengths and Weaknesses Questions & Answers.......................................26
“Flaws and Failures” Questions & Answers .................................................33
Recruiting Process Questions & Answers ....................................................46
Resume/CV and Academic Experience Questions & Answers .....................51
Understanding Banking and Finance Questions & Answers ........................58
“Why Banking and Why Us?” Questions & Answers ...................................74
“Outside the Box” Questions & Answers ....................................................81
How to Prepare for “Fit” Questions in 3 Simple Steps
“Fit” questions refer to ones such as:
•
Why do you want to work at our bank?
•
What are your strengths and weaknesses?
•
What’s your leadership style?
•
What’s your greatest failure?
•
Why should we hire you?
Unlike technical questions, “fit” questions do not require math or calculations to answer.
If you’ve outlined and practiced your story thoroughly, “fit” questions will be easy to answer.
And if you haven’t, they will be tough.
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In previous versions of this Interview Guide, we made a few recommendations about
qualitative questions:
1. Do not underestimate them because senior bankers often judge you based on “fit”
more than technical ability.
2. Prepare examples in advance and properly structure your answers to get the best
results.
Then, we listed 100+ “fit” questions, explanations for preparing for each category, and sample
responses for each question.
But let’s be honest: You don’t have time to read that much.
Also, you shouldn’t need to prepare so many separate answers if you get your story correct.
Think about how many “fit” questions you can answer with your story:
•
Why are you changing careers? Your story should already spell this out.
•
Why our bank and group? The ending of your story should explain this.
•
Why do you want to do investment banking? Your entire story should answer this
question.
•
Why did you attend the university or business school you did? You should briefly
mention this at the beginning of your story.
In the interest of efficiency, we now recommend a different approach to “fit” questions:
1. Prepare 3 “short stories” from your academic and work experience that demonstrate
the qualities bankers are seeking – analytical skills, attention to detail,
teamwork/leadership, knowledge of deals and client advisory, etc.
2. Select 3 strengths and 3 weaknesses. The strengths should be easy because you already
know the qualities that bankers are seeking (see above); the weaknesses are more
challenging.
3. Figure out your “real” weaknesses. Take an honest look at your background, anticipate
the objections that bankers will have, and prepare responses. For example, are your
grades low? Do you not have relevant work experience? Are you a job-hopper?
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If you’ve prepared a 150-word outline of your story and you complete the tasks above, you do
not need to do much else for the qualitative questions.
Bankers could potentially ask you hundreds of questions, but almost everything will be a
variation of the questions above.
If they ask you a qualitative question that is not a variation of the ones above, then:
1) It will be a “common sense” question for which you should not need to prepare (e.g.,
“Are you focused on investment banking, or are you interviewing for other industries?”).
2) OR it will be a question based on your understanding of the industry, what bankers do,
or recent market events. To answer these questions, you need to read the news, read
articles on M&I, and read other source material.
3) OR it will be a deal, company, or market discussion; we cover those in the two
subsequent guides and lessons in this module.
We will present examples of questions and answers in these first two categories, but there isn’t
much to say about the preparation methods.
The questions and answers are for your practice – answer each question yourself, and then
compare your answer to ours.
Return to Top.
Preparing Your 3 Short Stories
You should select 3 stories from your academic and work experience and use them to answer
questions about your leadership/teamwork skills, strengths and weaknesses, and
communication abilities.
DO NOT spend time coming up with dozens of different stories. Find a few good ones and
recycle them.
Here’s what you need:
1) One “Success” Story – You had a difficult task or challenging goal, you fought against
the odds, and you won.
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2) One “Failure” Story – The same as above, but you did not succeed. However, you
learned something valuable or changed as a result.
3) One “Leadership” Story – If your other stories were about you as an individual, this last
one should be about how you worked in a team or how you led a team. This one should,
ideally, be a success story as well.
All your stories should contain the qualities that bankers want to see:
•
Quantitative/Analytical Skills – The math isn’t rocket science, but you still need to be
comfortable with numbers.
•
Client Management – You must know how to interact with clients, make potential
clients like you, and resolve problems.
•
Teamwork/Leadership – You can motivate team members to finish their tasks, ensure
that teams function properly, and resolve differences.
•
You Can Burn the Midnight Oil – You can work long hours, stay up late, sacrifice
family/friends/health, and finish work on tight deadlines in stressful environments.
•
You Don’t Shake the Jello – You have strong attention to detail and you avoid making
mistakes; you catch small errors that others miss.
•
You Have a Strong, Demonstrated Interest in Finance – You’ve traded stocks, worked
on deals, created financial forecasts, and completed finance internships.
You could use many stories to support these points, but here are a few selection guidelines:
•
If you’re an undergraduate or recent graduate, you can use a mix of student activities
and internships.
•
If you’re at the MBA level, you should use stories from your work experience – but it’s
fine to cite one group activity or class project, especially if it’s relevant to banking.
•
If you’re beyond the MBA level or you’re changing careers without another degree,
these stories should come from your work experience.
Here are example stories in each category:
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1) “Success” Story – You did a strategy/corporate finance internship at IBM where you had
to analyze thousands of financial transactions related to outsourced providers of
company services; you found the top 5 most time-consuming processes and made a
recommendation to simplify some of them, which saved thousands of man-hours each
year (the equivalent of several full-time jobs).
a. Qualities Shown: Quantitative Skills, Not Shaking the Jello, and Interest in
Finance.
b. Relevant Interview Questions: Anything related to your attention to detail or
your ability to add value, work in teams, or improve processes.
2) “Failure” Story – You started a math tutoring business in university that did not work
out; you won clients and received positive feedback from everyone, including many
long-term customers, but had trouble scaling and hiring sales reps to expand into new
regions. It was tough to get part-time students to put in a full-time effort. In the future,
you’ll separate the roles and not try to do the product, marketing, and hiring alone.
a. Qualities Shown: Quantitative Skills, Client Management, and Leadership (the
venture didn’t succeed, but you still showed leadership by starting and growing
the business).
b. Relevant Interview Questions: Greatest failure and greatest weakness
questions, strengths/weaknesses as a leader, client experience, and teamwork.
3) “Leadership” Story – You completed a Treasury internship at a technology company;
the firm had issued debt and was in danger of breaching a liquidity covenant. On a tight
deadline, you had to contact all the other departments, determine their Cash levels, and
persuade them to tweak their spending toward the end of the quarter so that the
Parent Company could report a sufficient Cash balance. It worked, and the company
successfully complied with its covenants.
a. Qualities Shown: Quantitative Skills, Client Management (Not external clients,
but similar skills), Teamwork/Leadership, Midnight Oil, and Interest in Finance.
b. Relevant Interview Questions: Greatest challenge, strengths as a leader and
team member, ability to complete tasks on tight deadlines and work long hours.
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The examples above are short sketches of the stories, but they should give you the main ideas.
In each story, we use the STAR (Situation, Task, Action, Result) structure to explain what
happened.
Many interview guides recommend this same structure, and we agree that it tends to work
well.
Just be careful not to give too much detail in your initial answer!
A 30-second response (~75 words) for these questions is great; if you push it far beyond that,
bankers may cut you off.
You can sometimes get away with 60 seconds, but 2 minutes gets into “story” and “deal
discussion” territory.
Return to Section Top.
Return to Top.
Selecting Your 3 Strengths and 3 Weaknesses
Once you’ve prepared your 3 short stories, you have to select your strengths and weaknesses.
You need to think about these questions separately because you can’t necessarily give good
answers based solely on your 1-2-minute story.
Your story presents your work experience, personal qualities, and long-term goals; you’re not
going to discuss your biggest weaknesses there.
In fact, you probably won’t even discuss your strengths since you only have 1-2 minutes.
As a result, you need to plan out your strengths and weaknesses separately.
It’s easier to pick your strengths, we’ll start there.
You should pick qualities that bankers are looking for (see above) and that you can
demonstrate directly with your 3 short stories.
For example:
•
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Your Quantitative or Analytical Abilities – You could cite this as a strength and then use
any of the 3 example stories above to support it.
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•
Your Client Management Skills – You could cite this as a strength and use the second or
third stories above to support it.
•
Your Ability to Work in or Lead a Team – You could use the second or third stories to
support this one. Even though the second story is a “failure,” you still achieved some
success because you helped your clients get better outcomes.
•
Your Attention to Detail – You could cite the first story to support this point and explain
how you found small details in the company’s financial reporting that others missed,
which saved the company time and money.
•
Your Work Ethic and Ability to Work Long, Stressful Hours – You could cite the third
story to support this point and explain how you had to meet a tight reporting deadline,
which was critical since the company was public.
•
Your Interest and Knowledge of Finance – You could point to the third story and explain
how your knowledge of the company’s accounting systems and internal budgeting
process resulted in a successful outcome.
These strengths are all common, and that’s OK.
Bankers care more about the stories you use to support your strengths than your “creativity.”
The biggest mistakes with your strengths are:
1) Failing to support your strengths with a quick story from your work or academic
experience.
2) Trying to be “creative” and citing a strength that bankers don’t care about, such as
your creative writing skills, your basket-weaving abilities, or your wrestling ability.
In some cases, you can cite a “creative” strength if the group needs someone with a certain,
specific skill.
For example, if the group needs a fluent Arabic speaker because it has many clients in the
Middle East and North Africa, and you’re a native speaker, you can cite that as a strength.
But, otherwise, stick to the “boring” strengths and make them memorable by supporting them
with your unique stories.
Now to your weaknesses.
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In over a decade of conducting mock interviews, I’ve never once heard a good initial response
to the “greatest weaknesses” question.
That’s not entirely your fault; the truth is, there are no great answers.
Bankers know that, but they also know that there are some terrible answers.
Any weakness that you cite in an interview should:
1) Be Real, But Not TOO Real – If you say that you hate using Excel or PowerPoint or that
you can’t work long hours, the interview is over. You have to pick something that is a
real weakness, but which is not a “deal-breaker” weakness.
For example, you could say that you sometimes hesitate too much when making
decisions, which makes tasks take more time. This weakness could affect your
performance in IB, but it won’t kill you like a lack of Excel or PowerPoint proficiency will.
2) Be a Real Answer and Not a Cliché – Don’t even think about “I work too hard!” or “I’m
too much of a perfectionist.”
3) Not Be Inappropriate or Overly Personal – Don’t talk about your health problems,
family issues, religious or political struggles, etc.
4) Be Something That You Could Potentially Fix or Improve – So, don’t talk about your
height, the fact that English is not your first language, or your non-target school.
There are so many horrible answers to this question that it might be more useful to explain
what NOT to say first.
Here’s what you should NOT cite as a weakness in investment banking interviews:
•
“I work too hard!” (Non-answer)
•
“I’m a perfectionist and expect too much of others.” (Non-answer)
•
“I go to a non-target school. / I’m not a finance major.” (How can you fix this now?)
•
“I have chronic back pain or other physical problems.” (TMI)
•
“I can’t multi-task well.” (Too real! You can rephrase this one more effectively)
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•
“I’m not good with numbers.” (Too real!)
•
“I’m too shy.” (Too personal, and there are better ways to express the same idea)
•
“I have no weaknesses!” (Non-answer)
•
“I voted for [Name] / I’m [Religion Name] religion” (TMI)
•
“I have a horrible sense of direction.” (How is this relevant for banking?)
•
“I’m bad at interviewing because I tend to sell myself short.” (Not amusing)
•
“I’m too short and skinny, which makes it harder to win clients.” (Too personal)
•
“I’m not good at staying in touch with my family.” (Too personal)
•
“English is not my first language.” (How can you fix this now?)
•
“I don’t speak a second language.” (This point doesn’t matter in the U.S., while it’s ‘Too
Real’ in Europe, Asia, and other regions)
•
“I haven’t worked at a big company, so I don’t have a wide professional network.” (How
can you fix this now?)
•
“I don’t have an MBA degree.” (Since when do you need an MBA to do IB?)
•
“I’m young and haven’t experienced a major recession or global market crash, unlike
older candidates.” (How can you fix this now?)
I could keep going, but you get the idea: There are dozens of bad responses to this question.
There are not that many “good” responses, so you should stick to the list below. And if you
have any doubts, ask us before you say something stupid.
Here are reasonable weaknesses you could cite in investment banking interviews:
•
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“I’m not always good at delegating tasks, so sometimes the workload isn’t divided
evenly among team members.”
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Why It’s Acceptable: This is a real weakness, but as an Analyst (or even Associate), you
won’t be delegating that many tasks on the job. Also, you don’t say that you’re too
much of a perfectionist or that you do too much of the work.
•
“I sometimes take too much time to make decisions, or I second-guess myself, which
makes it take longer to complete tasks.”
Why It’s Acceptable: This is a real weakness that could hurt you in banking, but bankers
still want you to make the correct decisions and do the work correctly above all else.
•
“Sometimes I don’t speak up even when I’m sure that someone else on the team or a
superior has made a mistake or overlooked something.”
Why It’s Acceptable: This one is good because it’s not a universal weakness – it depends
on the context. In some cases, you have to shut up, and in other cases, you have to
speak up, so you can spin it any way you want.
•
“I don’t always manage my time well, and sometimes I focus more on finishing urgent
tasks than making long-term plans.”
Why It’s Acceptable: This is a variation of “I focus too much on details and don’t always
see the bigger picture,” but it’s more specific and less of a cliché. You could also back it
up by pointing to a long-term project that didn’t go well because you were busy with
day-to-day emergencies.
•
“Sometimes I have trouble saying ‘no’ to requests from co-workers and classmates,
which makes it harder to complete my own work.”
Why It’s Acceptable: This can be a real weakness in certain situations (e.g., it’s 3 AM,
and you need to finish a pitch book by 7 AM), but it’s not necessarily a deal-breaker.
Bankers do want you to help other teams and respond to requests from others.
•
“I submit my projects and work on time, but sometimes I forget to follow up and
check to see what I need to change or improve.”
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Why It’s Acceptable: This is a legitimate weakness that could hurt you in IB, but it’s not
that serious a weakness… since you still get your work done. Also, in most cases, it’s up
to the senior bankers to respond and tell you what to fix or improve.
•
“In team settings, I find it tough to balance doing the work itself and also managing
others and answering their questions.”
Why It’s Acceptable: This one is a weakness/challenge that every manager experiences,
so it is legitimate, but it won’t affect you as a junior banker that much since you’ll mostly
be doing the work.
•
“Sometimes I’m too ‘soft’ evaluating others and giving them useful feedback, which
makes it harder for a team to function well.”
Why It’s Acceptable: The supporting example is critical because this one sounds vague if
you present it as is. A good supporting story might be: “I’m a teaching assistant, and, as
a student myself, I feel guilty grading other students too harshly. But I’ve been working
with my professor to refine the process and become more critical.”
Besides the examples above, there are a few others that are “borderline” – they’re not terrible
or outright stupid, but they’re also not ideal:
•
“I’m very structured and process-driven, but I’m not the most creative person.”
Why This is Borderline: Creativity is not an important skill in junior-level investment
banking roles. Following orders, completing tasks on time, and avoiding mistakes are far
more important. You can use this weakness for variations on traditional
strength/weakness questions (see below), but it’s not ideal for a standalone question.
•
“I’m not good at presentations or public speaking.”
Why This is Borderline: You sometimes use these skills in junior-level IB roles, but as
with creativity, they’re less relevant than everything else above. Some interviewers may
also challenge this response by saying, “OK, but who cares? You won’t do much public
speaking anyway.”
•
“I’m overly competitive, and I hate losing.”
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Why This is Borderline: This one also falls into the “Not that relevant” category. You will
lose pitches and deals all the time, and you have to accept the outcome, so in that
sense, this weakness could hurt you. But it doesn’t matter that much: Senior bankers
have far more to lose since they get paid based on closed deals.
Should You Explain How You’re Working to Fix Your Weaknesses?
Yes, you can give a sentence or two to explain how you’re working to fix or improve your
weaknesses.
But don’t take this concept too far.
For example, if you give three weaknesses from the list above, don’t say, “I’m improving my
time management skills by taking a class and working with a coach. To fix my other two
weaknesses, I’m using Approaches B and C” at the end.
Make it more casual and say, “I’ve been working to improve my time management skills, and
I’m using feedback from my bosses to change my schedule and work style.”
If the interviewer wants more details, let him/her ask for them.
Do NOT ramble or turn your “weakness” answer into a 5-minute soliloquy.
You can give a longer answer if you’re asked for a single weakness or “your greatest weakness,”
but you have to be concise if you’re asked for both strengths and weaknesses or multiple
weaknesses.
Variations of Your Strengths and Weaknesses
There are dozens of variations on these questions.
You don’t need to “prepare” different stories or responses, but you should be aware of the
other questions that also ask about your strengths and weaknesses:
•
“Why should we hire you?” (Combined strengths and work experience question)
•
“How would your best friend describe you in three words?” (You can use more ‘casual’
strengths)
•
“What’s your biggest failure?” (Combined weakness and work experience question)
•
“What feedback did you receive from your most recent internship or job?” (Combined
strengths and weaknesses question)
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•
“How would a former co-worker describe you?” (Combined strengths and weaknesses
question)
•
“What peer feedback have you received in group exercises at your business school?
(Combined strengths and weaknesses question)
•
“If you worked in a group with only multiple you’s, what would happen?” (Combined
strengths and weaknesses question)
We’ll explain all these questions – and more – in the section on Strengths and Weaknesses
Questions & Answers.
For now, just be aware that you may need to spin your strengths and weaknesses to fit slightly
different questions.
Return to Section Top.
Return to Top.
Figuring Out Your “Real” Weaknesses
Finally, we get to your real weaknesses.
These are not your responses to a question like “What are your greatest weaknesses?”
These are the big problems about which bankers will ask you difficult questions.
Banks are risk-averse.
They prefer to hire someone who is competent in many areas, with no major flaws, than
someone who is exceptional in one area but who also has a major flaw.
So, you need to take an honest look at yourself and ask what banks might perceive as your
major flaws.
Then, you need to sketch out responses to these concerns.
To figure out your “major flaws,” compare yourself to the ideal investment banking candidate:
•
Education: Went to a top private school and then Princeton, Harvard, or Oxbridge for
undergraduate. Earned perfect test scores and perfect grades in an accounting/finance
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concentration. Native speaker of English and also speaks 2-3 other languages fluently
(more important in Europe).
•
Work Experience: Completed a corporate finance internship at a local firm, then a
boutique investment banking internship, and then a bulge-bracket or elite-boutique
internship.
•
Hobbies/Interests: Has studied abroad in Asia and South America, plays football (either
kind), and has won international recognition for a more “random” hobby or interest,
like greenhouse construction.
•
Demeanor: Is sociable and charismatic and puts everyone around him at ease instantly.
Can befriend anyone anywhere.
In fiction, this person would be a “Mary Sue”: A perfect character with no flaws.
Bankers are looking for “Mary Sues” in the recruiting process – even though they don’t exist.
To find your major flaws, think about how your background differs from the one above:
•
Education: Did you attend lesser-known universities? Are your grades or test scores
low? If you’re in Europe, do you not know other European languages? Did you not major
in accounting/finance or take significant coursework in them?
•
Work Experience: Do you not have prior IB experience? Why didn’t you complete IB
internships in undergrad? Why are you trying to enter the industry at this late stage,
when you should have started in university?
If you did a private equity internship, how do I know you won’t work here and go back
to private equity in two years?
If you are 35, are you sure you can work long hours? Or will your family and outside
commitments distract you from work? (These questions would be stated differently
because it’s not legal to discriminate based on age in the U.S. or U.K.)
•
Hobbies/Interests: Why have you not played sports? Why don’t you have that many
hobbies or interests? Are you a boring person? Can you pass the “airport test?” If you’ve
worked in a “boring” field like accounting, are you also boring?
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•
Demeanor: Why are you so uptight? Why are you not smiling that much? Why are you
so serious instead of taking the time to connect with us?
We’re not trying to scare you, but we want to be realistic about the questions you’ll get.
Bankers often use “fit” questions to play ‘Bad Cop’ and see how well you can explain your
weaknesses and shortcomings.
We’ll explain how to answer these questions in the “Flaws and Failures” section below, but you
should create a list of your major flaws right away.
Here are examples of potential flaws from different backgrounds:
•
Liberal Arts: Do you know accounting and finance? Can you do math? Can you work
long hours and deal with psychotic people?
•
Engineering: Can you talk to people? Do you know accounting and finance? Can you
write in English, or just in binary code? Can you work long, punishing hours?
•
Consulting: Can you use Excel? Do you know accounting and finance? What about
working even longer hours?
•
Accounting: Are you boring? Can you pass the “airport test”? Can you work much longer
hours?
•
Law: Do you know accounting and finance? Can you do math? Can you take a pay cut
and come in as a more junior employee?
•
International (Non-U.S./U.K. Origin): Can you speak English well enough to work here?
Do you fit in with the culture? Do you watch football?
•
Corporate Finance: Why didn’t you get into investment banking in undergrad? Can you
work long hours? Are you boring?
•
Military: Do you know accounting and finance? Can you work long hours as an older
candidate? Are you too “blunt” to work in a corporate environment?
•
Entrepreneur: Are you a failure? Why else would you want to enter banking? Are you
still running your company on the side? Why didn’t you start out in IB?
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You may not necessarily have any of these flaws.
But what matters in interviews is PERCEPTION – not reality!
If bankers perceive a certain flaw, given your background, then they will ask you questions
about it.
There are also universal flaws that almost anyone will receive questions on:
•
Low Grades: You’ll often get questions if you have less than a 3.5 GPA in the U.S., less
than a 2:1 in the U.K., or less than the equivalent in other countries.
•
Work Experience Gaps: You’ll get questions if you have multiple gaps of at least 2-3
months each.
•
No Return Offer from an Internship: You’ll need a decent justification to address this
one, such as the fact that department was shutting down and no interns received return
offers.
•
Location Change: Are you truly committed to the new location? Why are you making
such a big change? Why didn’t you move earlier?
It’s not hard to answer most of these objections IF you outline your responses beforehand.
We’ll cover these in more detail in the “Flaws and Failures” section, but here’s a summary:
Lesser-Known University
If you’re in the U.S., say that your family didn’t have enough money to send you to a better
school, and you decided to accept generous financial aid at a lesser-known school.
This logic won’t work in countries where education is cheaper, but you could say that you
attended your university for some other reason, such as participation in a sports program or
the need to take care of elderly family members close to home.
You could also admit that you weren’t 100% focused on investment banking when you applied
to universities and only solidified your interest once you began taking classes.
Low Grades or Test Scores
Say that you didn’t perform well at first, but you improved significantly over time, as evidenced
by your higher GPA in the past year or two.
You could also point to higher grades within your major or concentration.
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With low test scores (such as low A-Levels in the U.K. or low SAT scores in the U.S.), you could
also point to solid results on other tests or certifications.
Lack of Other European or Asian Languages
Turn this weakness into a strength by pointing out that you are a native speaker of English, so
you’ll be able to proofread and edit documents and presentations from non-native speakers,
which is a required part of the process.
Also, you can point out other useful skills you have, such as languages that might be useful in
other regions, VBA (which is also “a language”), or expertise in certain industries or deal types.
Lack of Accounting/Finance Knowledge and Coursework
Say that you’ve studied independently and learned the ropes on your own. Point to classes,
online courses, or certifications (e.g., the CFA), and offer to prove your skills to them.
If they doubt your financial modeling skills, offer to complete a modeling test for them.
If they doubt your accounting skills, offer to analyze a company’s financial statements.
Questionable Quantitative Ability
Take a similar approach and say you’ve learned math and quantitative skills on your own,
you’ve used them in past work experience, and you’re happy to prove yourself.
To do that, offer to complete a math or finance test or some other assessment (or even answer
mental math questions).
Questionable Social Skills
Point to times when you needed to use your social skills in the past: Meeting new friends when
studying abroad, organizing a team, leading an activity, attracting sponsors to an event, or
retrieving information from departments at your company.
Questionable Writing Skills
Point to times when you had to use your writing skills: Liberal arts classes, announcements or
advertisements for student activities or events, writing for the student newspaper, or writing
instruction manuals or documentation for technical work.
Offer to send them writing samples or complete a writing test.
Lack of Prior IB Experience
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Explain how you developed skills and personality traits that are useful for investment banking
in prior roles: Analytical skills, attention to detail, the ability to work long hours in stressful
environments, and so on.
For example, in a corporate finance internship, you had to check the financial statements of
your department right before a reporting deadline, so you needed strong analytical skills,
attention to detail (the company was public, and friends in other departments to give you the
right information.
Late Interest in the Industry
Admit that you were not aware of investment banking early on because no one in your family
was in industry, and almost no one at your university went into the field.
By the time you had learned about it and decided to break in, it was too late to complete the
sequence of internships that you need to win IB offers.
As a result, you’ve moved as close as you can – including working at [Big 4 firms, independent
valuation firms, within the corporate law team, etc.].
Lack of Client Experience
Point to cases where you had to interact with other teams, groups, divisions, or professionals,
even if they weren’t external clients.
Then, explain that at a big organization, they might as well be external clients because it’s
impossible to know everyone there.
As a result, you had to build rapport with others, confirm that you were speaking with the right
person, and “make the ask” at the right time, just as you do with clients.
Questionable Commitment to IB
“It was your plan all along.”
Say that once you developed your interest in IB – from your “Spark” in your story – you planned
to get into the industry, and you knew you’d need other work experience and activities to do it.
You didn’t complete a private equity internship because you secretly want to go back to PE; you
did it because several local firms were hiring interns, and you viewed it as a good first step into
the industry.
Inability to Work Long Hours
Point to examples of when you’ve worked long hours over extended periods in the past.
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Saying you worked all weekend during finals week isn’t a good example because… it was a
weekend.
A much better example is saying that you woke up at 5 AM every day for a year to attend sports
practice in the morning, you went to school during the day, and then you worked a part-time
job until 11 PM.
That experience proves that you can work 70-80 hours per week for a year with significant
stress and minimal sleep.
Lack of Hobbies, Interests, Travel, etc.
If you truly have nothing – no study abroad experiences, no hobbies, and no interests – then
join a student group and get something quickly.
Pick the most unusual group you can find – something like the juggling club, the Hawaiian film
club, or the Icelandic cave art club – and run with it.
You don’t need to do a ton of research or attend many meetings.
Your goal is to state one memorable fact about yourself – you don’t need to be a world-class
expert!
Can You Join at a More Junior Level?
Turn this one around and point out that it would be much easier and more lucrative to stay
where you are, so you must be serious about this transition. Otherwise, who in their right mind
would accept lower seniority and compensation?
You can also point to examples of pay cuts and other sacrifices you’ve made in the past to
accomplish your career goals.
Cultural Fit (for International Students)
This one is hard to “fix” at the last minute because an interviewer can tell whether or not you fit
in with the local culture within ~2 minutes.
You need to make friends from other places, preferably ones who are from the country you’re
in, and learn about sports and entertainment in the country.
In the U.S., that means learning about North American football, baseball, and basketball, as well
as popular TV shows.
In the U.K., that means learning about the other kind of football, cricket, rugby, etc.
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Get a favorite team, follow some of their games, and be able to speak about a few players on
the team.
Work Experience Gaps
Pretend that you did something constructive in each gap, even if it’s a huge stretch – after all,
how could the interviewer possibly know what you did?
It’s easiest to do this by spinning small things from each gap into sounding more impressive
than they are.
For example, if you visited a sheep farm one day, you could say that you “tended to your
family’s sheep farm,” studied its operations, and made some improvements, learning about a
new industry and management style in the process.
If they ask why you have so many gaps, say that you always had a plan for each gap, such as
volunteer work or self-study, and you didn’t see the harm in taking time out every few years to
gain a new skill.
Appearance of Job Hopping
“It was your plan all along.”
Point out that you need certain experience to get into banking, but, at the same time, you can’t
have too much experience in other industries.
Since you became interested late in the process, you planned to join a Big 4 firm, work there for
a year to gain client experience, then move to an independent valuation firm, stay there for a
year to gain valuation and deal skills, and then get into IB.
You knew you’d have a much better chance if you moved over within 2-3 years, but you also
needed all that experience first.
No Return Offer from an Internship
The best way answer is to say that you don’t know whether or not you received a return offer
because the bank hasn’t made final decisions.
The second-best answer is that the bank greatly reduced its hiring or the group disbanded, so it
did not award return offers. Then, offer references to prove that you did a good job.
You could also say that the culture was not a “good fit,” but you’ll receive follow-up questions
on what that means. And if you don’t have a good, specific answer, you’re screwed.
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Finally, you could also admit something close to the truth and say that you made a mistake or
performed poorly in the beginning, fixed it later on, but still didn’t receive an offer.
Questionable Commitment to a New Location
You need to point to a connection to this location: Family (even distant family), a significant
other, friends, alumni, activities, hobbies, or even classes that you’re planning to take.
You could also admit that you are switching locations because you picked your current location
a long time ago, but as you’ve committed to investment banking, you’ve realized the need to be
in [NY, London, HK, etc.]
Poor Demeanor
This one is impossible to explain how to “fix” in a written Interview Guide, but I recommend
finding a body language coach if you have doubts about how you’re presenting yourself.
In banking interviews, you have to strike a careful balance between being friendly and serious.
If you walk in smiling like an idiot the entire time, it could rub the interviewer the wrong way,
especially if he/she just pulled an all-nighter.
But if you never laugh or smile, that could also be a problem.
One tip is to make a lighthearted comment when you first enter the room or sit down.
Don’t jump into your story and work experience right away; respond to the interviewer’s
rhythms, and if he/she wants to talk about random topics first, go with it.
Return to Section Top.
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Teamwork and Leadership Questions & Answers
These questions should NOT be hard if you’ve already prepared your 3 short stories: A
“Success” story, a “Failure” story, and a “Leadership” story.
1. Can you talk about a team project or group activity you’ve worked on before?
You should use your “Success” story and the STAR (Situation, Task, Action, Result) structure for
this one. Aim for 100-150 words to keep your answer under 60 seconds.
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Sample “Good” Answer: “Sure. During my summer internship at the New York State
Comptroller’s Office, I worked in a team of two attorneys, an investigator, and an Analyst to
look into financial waste and misappropriated funds.
In one case, we investigated a public hospital and reports of misused government funds there. I
researched and analyzed the hospital’s financial reports and worked with the Analyst to sift
through huge amounts of data.
The Analyst had very little time, and we were on a tight reporting deadline, so I had to work
long hours and come in on weekends to finish the project.
I came up with a more efficient, automated way of interpreting the financial reports, and I
found several cases of fund misuse by one division at the hospital. Based on that report, the
Comptroller’s Office withheld funds until the hospital changed its policies and replaced staff.”
2. Can you describe a situation where a team did not work as intended?
You can use your “Failure” story here. Resist the urge to blame others and instead use this
question to state one of your weaknesses/areas for improvement and explain how you’ve been
improving.
Sample “Good” Answer: “Sure. During college, I started a math tutoring business for highschool students. I won dozens of clients and wanted to expand the business by hiring sales reps
and additional coaches.
I hired five coaches and ten sales reps, but the business did not work out because it was too
hard for me to do the tutoring and also train and manage others at the same time; it was also
hard to motivate the new hires since most were doing it part-time.
I ended up canceling the expansion and just keeping a few of my own clients. I learned that it’s
very difficult to do the work and manage others at the same time, so if I had to do this again, I
would split up the roles.”
3. Can you tell me about a time you faced an ethical dilemma in a team or with a co-worker?
You could use any of your short stories for this question but focus on a different aspect of it –
namely, disagreeing with a team member over the right course of action.
You don’t have to cite a gigantic “ethical dilemma”; it could be something where the person
suggested doing something that was borderline-unethical but not definitively wrong.
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Sample “Good” Answer: “Sure. When I worked in a team of four in the JP Morgan M&A case
study at my university last year, we had to pick a recent deal, value the seller, and recommend
for or against the deal in a presentation.
One team member knew the winners from the previous year, and he suggested contacting
them, getting their presentation, and using their entire structure but changing the deal and
valuation to maximize our chances of winning.
I thought it was a terrible idea that went against the rules of the competition, so I lobbied
against it and convinced him to use an original structure; I even offered to draft the
presentation and have the other team members pick a deal and value the company.
We ended up coming in second place, but I think we used the right approach.”
4. What was the most difficult situation you faced as a leader, and how did you respond?
This question is almost the same as the one above, but you should use your “Leadership” story
for this one and focus on the key challenge(s) you overcame.
Spend more time describing that challenge and the ACTION you took rather than the Situation.
Sample “Good” Answer: “In my final year of university, I acted as the team leader for a
marketing project with five students. I had to make sure everyone finished their assigned tasks.
One week before the project was due, a team member called me to say that he had a family
emergency, couldn’t finish his tasks, and hadn’t done anything yet. He had to go home
immediately.
But he desperately needed to pass the class to graduate, and he asked me to pretend that he
had done all the required work.
I gathered the other team members and convinced them to pull an all-nighter with me to finish
as much of the assignment as we could. We didn’t get the best grade, but everyone passed and
graduated.
I ‘covered’ for the team member, but decided not to work with him on any projects in the
future.”
5. Can you tell me about a time when you stepped up and demonstrated leadership even
when you were not in an official leadership role?
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You can use your 3 “short stories” to answer this question, but you should stick to the one
where you did not hold an official title or leadership role.
Most likely, that means you’ll use your “Success” story or “Failure” story. It’s a bit better to use
the Success story since this question doesn’t relate to a weakness or failure.
Sample “Good” Answer: “In my corporate finance internship last summer, I was a junior intern
and mostly supported my Manager and Analyst in the Treasury Department.
We had to finish end-of-quarter reports, and my Analyst was pulled into a company-wide
offsite for several days while my Manager was away because of a family emergency.
I knew we would miss the reporting deadline for our Cash and liquidity positions, so I contacted
all the other departments, introduced myself, explained the situation, and got all the required
transactions and balances from them.
Then, I called the Analyst, explained the results so far, and had him and the Manager sign off on
my work. They reviewed it when they came back and fixed a few issues, but we were able to
meet the reporting deadline.”
6. Do you work better as a leader or a follower?
You can function as both a leader and a follower depending on the situation.
You do this all the time in finance, even at the entry-level, so you have to be OK with both roles.
For this question, you can use your “Leadership” story and also speak about an aspect of the
story where you were more like a team member rather than the official leader.
Sample “Good” Answer: “I can work as both a leader and a team member depending on the
situation. I’m more than happy to work with others, but I can also assign tasks, ensure the work
gets done, and manage projects.
For example, when I interned at a public interest advocacy organization last summer, I worked
mainly as a team member since my supervisor gave me my assignments such as press releases
and announcements.
But all the interns had to work together in a few cases, and one time we had to create slogans
for a new public outreach campaign. We discussed ideas for several hours but hadn’t yet
reached a consensus.
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I stood up at that point and suggested consolidating our ideas, ranking them, and then voting
on all the ideas.
We got a result within an hour, and for the rest of the project, I helped direct our discussions.”
7. What is your leadership style?
Everything in investment banking is task and goal-based, so you probably don’t want to say
“laissez-faire” or “hands-off” for this one.
But you also don’t want to say you’re a dictator or autocrat.
Use a “middle of the road” response where you say that you like goals and task lists, and you
don’t like to micromanage, but you will step into the details when it’s necessary.
Sample “Good” Answer: “I tend to work best when everyone on the team has goals and lists of
weekly tasks, so I use a more structured leadership style. I don’t like to micromanage, but I will
step into the details when I need to.
For example, when I worked as the assistant manager of a Staples location in my first year of
university, I assigned the team tasks such as inventory checks, maintenance, and re-stocking
the shelves, and I did occasional checks to make sure the work was getting done.
But I wasn’t constantly looking over their shoulders or jumping into customer conversations.
This approach worked well, and customers that year were 20% more satisfied with the service
than in past years, which boosted the store’s sales as well.”
8. Does the leader make the team?
No – the team makes the team. The leader provides direction, resolves problems, and unifies
everyone, but the team is much more than just the leader.
For this question, you could use your “Failure” story to illustrate a challenge or your
“Leadership” story if that one better illustrates the importance of teamwork.
Sample “Good” Answer: “The leader doesn’t make the team; the team makes the team. The
leader can set the direction, keep everyone on track, and resolve problems, but everyone has to
pull their weight for the team to succeed.
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For example, in my recent corporate finance internship, the Analyst and Manager in my
department were the ‘leaders,’ but they were both away from the office for a few days when
an end-of-quarter reporting deadline came up.
I had to step up, get financial information from different divisions, and then compile it and run
the reports by the senior leaders when the leaders right above me were away.
We ended up meeting the deadline, but it wasn’t because of me or any one person: It was
because everyone worked together and we covered for a few team members.”
9. Tell me about a time when you worked with a difficult team member.
This question is a prime candidate for your “Failure” story, but your “Leadership” or “Success”
story could also work well.
The structure is the same: STAR, 100-150 words, and focus on your learnings, takeaways, and
how you’ve been working to improve your teamwork and leadership skills.
Sample “Good” Answer: “I dealt with a difficult team member last year when I worked in a
team of four in a JP Morgan M&A case competition at my school.
We had to pick a deal, value the companies involved, and make a recommendation on whether
they should proceed with the deal.
One teammate wanted to re-use the same presentation the winners from the year before used
to save time and increase our chances of winning; we would just update the deal and
companies involved.
I thought it was unethical and a terrible idea, so I convinced him not to do it by offering to draft
the presentation myself. The other team members picked the deal, companies, and valuation,
which appealed to him since he preferred the quantitative work.
We ended up coming in second place out of 30 teams.”
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Strengths and Weaknesses Questions & Answers
All these questions should be easy if you spent time selecting your 3 strengths and 3
weaknesses, as we recommended above.
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The main challenge with these questions is adapting your responses to the many variations
they could ask.
In some cases, you might have to combine your strengths and weaknesses with your three
“short stories,” your main “story,” or your answers to other questions.
1. What are your strengths and weaknesses?
You should present 2-3 strengths and 2-3 weaknesses and then give a short example – probably
one of your “short stories” – to support them.
If you don’t have one story that illustrates everything, you can use one story for your strengths
and another story for your weaknesses, but you have to make them CONCISE.
You don’t need to explain how you’re improving or “fixing” your weaknesses because it will be
almost impossible to do all of that in less than 150 words.
Sample “Good” Answer: “My main strengths are my work ethic, ability to meet tight deadlines
under pressure, and my quantitative skills.
I used those strengths in my last corporate finance internship when I had to work with different
departments to complete a quarterly report on a last-minute deadline when the more senior
team members in my group were gone. I had to make sense of unfamiliar reports and
transactions quickly and submit accurate work.
My weaknesses are that I sometimes take too long to make decisions and that I sometimes
have trouble speaking up in group situations even when I know something is going wrong.
In one recent M&A case study at business school, I could tell that one team member wasn’t
doing the required work, but I waited too long to approach him, and he hurt our team’s efforts.
We could have avoided problems if I had spoken up earlier.”
2. What’s your greatest strength?
For this question, pick one strength and use one of your “short stories” to support it. This is a
“softball question” that tests your preparation more than anything else.
Sample “Good” Answer: “My greatest strength is my communication ability. I work well with
team members from different backgrounds, and I make sure everyone is on the same page so
there are no misunderstandings.
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For example, in my operational consulting internship, I worked in a 10-person marketing team,
and the initial work we produced wasn’t great. No one wanted to blame the others, but I knew
that several team members didn’t completely understand the tasks.
I spoke with everyone and figured out that several team members had science and engineering
backgrounds and didn’t know much about marketing, so I explained the concepts to them and
then divided up the work so that they could focus on the numbers and analysis instead.
The client ended up liking our campaigns and hiring the firm again.”
3. What’s your greatest weakness?
You could pick any of your weaknesses for this one, but the one that’s least damaging for the
role is best.
For example, if you’re applying to Associate or VP-level roles, don’t say that you have trouble
delegating tasks since you’ll have to delegate tasks all the time.
You could say that you’re structured and not too creative if you’re applying to a startup or tech
company, but it’s not a great weakness for IB roles since they don’t require much creativity.
Once you’ve picked the best weakness, back it up with one of your “short stories” and briefly
explain how you’re working to improve it.
Sample “Good” Answer: “My greatest weakness is that I often take too long to make a
decision, even when I’ve settled on the correct decision.
For example, when I was running my math tutoring business in university, one of the tutors I
hired received very ‘mixed’ feedback from students. Some loved his style, and some hated it.
He wasn’t hurting the business, but he wasn’t a huge benefit, either, and he was difficult to deal
with since he always asked for higher pay.
I knew I should have let him go within the first 2-3 months, but I waited 6 months to do it,
which reduced the time I could spend on sales and marketing and limited our growth.
I’ve been working on this problem by forcing myself to make a certain number of decisions each
week, even if they’re small, to get into the habit of taking action more quickly.”
4. Why should we hire you? (Or “What value can you bring to our firm?”)
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This one is a combined Strengths and “Work Experience” question, but you shouldn’t just give
your strengths and point to success stories.
At the beginning of your answer, state that companies hire employees to earn more money,
save time/money, and improve processes.
And then explain how your strengths tie into these points and how you’d get the company
results shortly after you join.
Sample “Good” Answer: “Companies hire people who can help them make more money or
save time and money, and I’m confident I could do all of those.
First, I’ve always added value for management in past internships by saving them time, which is
the same as saving them money – I did that in my private equity internship when I improved
the sourcing process and made company searches 20% faster.
Second, I’ve also completed valuation and financial modeling work in my previous internships,
so I could immediately save your team members time and let them focus on winning clients and
closing deals.
Finally, I’ve made teams perform better by helping team members to get along – one example
is when I got engineering and technical team members up to speed in my operational
consulting internship.
I could use all those skills at your firm and help you earn more and save more.”
5. How would your best friend describe you in three words?
This question is another Strengths one, but you can give more “casual” strengths that relate to
your personality more than the skill set required by investment banking.
You can still draw from the same list of strengths, but don’t use words like “team player” or
“attentive to detail” – who would use those words to describe a friend?
Sample “Good” Answer: “Hardworking, careful, and outgoing. I’ve worked with my best friend
on a lot of engineering projects in university, so she knows that I can work long hours and fix
problems at the last minute.
She would also say that I’m careful because I take a lot of time to make decisions and I put a lot
of thought into details, like the speaking order in group presentations.
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Finally, she would describe me as outgoing because I made friends easily when I studied abroad
in Spain last year, and I like meeting new people at events and in student groups.”
6. What’s your biggest failure?
You can use your “Failure” story here. Just make sure that it is a decently big failure or you’ll
look silly.
For example, don’t say that earning a B+ in one class, despite earning A’s everywhere else, was
your “biggest failure.”
A “good” failure might be a job or internship that didn’t go well, a business that failed, or a
study-abroad experience that disappointed.
Sample “Good” Answer: “My biggest failure was being forced to shut down my math tutoring
business in university. I started the business because I received a lot of requests from other
students for help with math assignments, and I had developed good teaching methods.
Initially, it went well, and I won a few dozen clients who were satisfied. But when I tried to
expand the business by hiring more tutors and sales staff, I had a tough time maintaining
service quality.
I was spending so much that we began losing money, so I had to shut it down and go back to
only a few of my clients.
I was disappointed, but I learned the difficulty of delivering a service and also managing and
training others at the same time. If I did this again, I would split up the roles and focus on one
or the other.”
7. What feedback did you receive from your most recent internship or job?
This one is a combined Strengths and Weaknesses question, and like all “combined” questions,
it’s tough to give supporting stories and explain how you’re fixing your weaknesses.
You’ll have to state something brief for the “fix,” or, if you’re using multiple stories to support
your points, leave out the “fix” altogether.
You don’t need to give all 3 strengths and all 3 weaknesses; it’s better to give 1-2 so that you
have a few “in reserve” in case the person wants more.
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Sample “Good” Answer: “On the last day of my private equity internship last year, my Principal
said he admired my ability to work long hours, get up to speed quickly on valuation and
financial modeling, and find interesting companies.
In one case, we got an inbound deal a few days before a bank’s bidding deadline, and I had to
research the medical imaging industry and figure out how to value the company and assess its
competitors, so I stayed in the office for a holiday weekend and pulled an all-nighter to finish it.
For areas to improve on, they said I wasn’t always the best at managing my time and following
up on assignments. For example, I’d often find interesting private companies and do the initial
research for the full-time team, but I’d spend too much time on new leads rather than following
up on companies I had already found.”
8. How would a former co-worker describe you?
This is another combined Strengths and Weaknesses question, and it’s similar to the one about
the three words your best friend would use to describe you.
The difference is that you should be more formal with your response since you’re discussing a
former co-worker, not your best friend.
You can mention 1-2 strengths and a single weakness for this one.
Sample “Good” Answer: “My former co-worker in Facebook’s corporate development team
would describe me as enthusiastic and hard-working, but sometimes a bit scattered with my
time management and day-to-day tasks.
My role wasn’t strictly defined, so I often found myself handling random, last-minute requests.
One time, bankers presented a potential M&A deal to us a few days before the first bidding
deadline, and I jumped in to help a co-worker value the company and assess its impact on
Facebook, so I had to stay late and learn a new sub-industry to do that.
But I didn’t always explain to others exactly what I was doing, so there was sometimes
confusion over my schedule and how much time I had available for tasks. I’ve been working to
improve that by posting my rough schedule and daily tasks in my cubicle and letting my
managers know when I get busy.”
9. What peer feedback have you received in group exercises at your business school?
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This is yet another combined Strengths and Weaknesses question, but the context is different:
School rather than work.
But the same strategy applies: Go back to one of your prepared “short stories,” picking one that
relates to a student activity, and give 1-2 strengths and a single weakness.
Sample “Good” Answer: “In a recent stock pitch exercise, I worked with a team of four in my
investment management class to screen companies and present our thesis. We came in third
place out of 50 teams, so we did fairly well overall.
Everyone said I was efficient and had strong analytical skills – I quickly went through dozens of
ideas we had brainstormed and came up with quick financial screens to eliminate many
companies, which saved us all time. I also built many of the financial models we used.
They said I could improve by not judging other peoples’ ideas so harshly. I knew a lot about
many of the companies we considered, so I had strong opinions and I wanted to save us time.
But I didn’t always express my opinions in a restrained way. So, I’ve been working to tone down
my words a bit, even if I have strong opinions.”
10. Why would we NOT give you a job offer today?
This one is also a combined Strengths and Weaknesses question, but you give your strengths
first, and then admit at the end that you do have 1-2 weaknesses that could hurt your chances.
Also, you can cite something closer to your “real” weaknesses in this response.
Admit that other candidates might have more coursework or internships or something else, and
then explain why you still don’t see that as a problem.
It would sound a bit silly to say that you might not receive a job offer because of your time
management skills or decision-making ability.
Sample “Good” Answer: “I see no reason why you wouldn’t give me an offer because I can add
value to your firm and help you earn more and save more.
In past internships, such as my corporate banking one at Bank of America, my managers have
said that I made their lives easier by handling analytical and modeling work, improving the
screening and approval process for loans, and helping the team function more effectively by
training new hires.
If you did not give me an offer today, it might be because I don’t as much investment banking
experience as other candidates.
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However, I have had corporate banking, private equity, and capital markets experience, and I
am confident I could immediately add value to your team.”
11. If you worked in a group with multiple you’s, what would happen?
This one is also a combined Strengths and Weaknesses question, and you can also give more of
a “real” weakness.
It may also be OK to use more of a “borderline weakness,” such as a lack of creativity, since this
question asks you about a hypothetical situation.
Sample “Good” Answer: “I tend to be very structured in my thinking, and I always like following
a set process to get results. I’m also good at getting input from others and working long hours
to finish urgent tasks.
So, if I worked with cloned versions of myself, we would be very orderly and we would finish
the work on-time and present it effectively.
But my weakness is that I’m not a particularly creative thinker, and I rarely come up with
‘outside the box’ ideas.
So, if we were pitching a stock or making an M&A recommendation, we probably wouldn’t
come up with a crazy idea that stands out and gets a lot of attention.
But our presentation would be supported by a lot of facts and numbers, and it would be wellstructured.”
Return to Top.
“Flaws and Failures” Questions & Answers
After the Teamwork & Leadership questions and the Strengths & Weaknesses questions, the
“Flaws and Failures” questions represent the third-most important “fit” category.
We explained how to determine your flaws in the sections above, and we provided the
rationale to explain different weaknesses.
Here, we’ll cover the questions you might receive and what “good” answers might look like.
With these questions, less is more. The more you “explain” a flaw or failure, the more bankers
will wonder if you’re hiding something.
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1. Why did you not attend an Ivy League university or another elite school?
If you’re in the U.S., make it about money; if you’re in another country, make it about not
knowing what you wanted to do or wanting some other aspect of what the school offered.
Sample “Good” Answer for the U.S.: “I did well in high school and earned high grades and test
scores, and I had enough activities to get into the top schools, but my family couldn’t afford it
since we were in a low-income bracket. I won a scholarship at a state university, so I decided to
go there for free instead.”
Sample “Good” Answer for Other Countries: “I did well in secondary school, but I hadn’t yet
decided on my long-term career plans, so I hadn’t realized the importance of a top school. I
decided to stay close to home to take care of a few older family members and to play on my
local football team.
I figured my university was “good enough” since most students won job offers upon graduation;
if I had known that I would pursue investment banking, I would have attended the best school
possible.”
2. Why are your grades so low?
You’ll get this question if you have below a 3.5 GPA in the U.S. or below a 2:1 in the U.K. (or
equivalent in other countries). The only answer is an improvement story.
Sample “Good” Answer: “To be honest, I had trouble focusing in my first year of university, and
I jumped between many different majors and classes. I also spent too much time on athletics,
and my grades suffered as a result.
But ever since I decided on accounting and finance, I’ve greatly improved my grades, and I have
a 3.8 overall GPA in the major, with A’s in every class after my first year. And I did that while
taking a full course load, playing football, and working part-time 20 hours per week.”
3. Why are your A-Levels (or SATs in the U.S.) low?
Admit that you messed up or that you don’t take standardized tests well, and point to your high
grades in university or certifications like the CFA as evidence of your intelligence.
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Sample “Good” Answer: “I have to admit, I wasn’t as focused as I should have been in
secondary school. I spent too much time on activities and socializing and not enough time on
academics, and my A-Levels suffered as a result.
But since I entered university, I’ve become more driven and focused, which is how I completed
two finance internships during the school year and earned a 2:1 at the same time. I’ve also
worked to improve my test-taking skills and recently passed Level I of the CFA, so I’m confident
that my A-Level scores don’t reflect my abilities.”
4. Other candidates for our London office speak 3-4 European languages fluently. Why don’t
you?
Point to your other useful skills (such as native English ability or non-European languages) or
even expertise in an industry or programming language that might be useful for IB, such as VBA.
Sample “Good” Answer: “I was raised in a background and academic system where other
languages weren’t emphasized, so I don’t have the linguistic skills of other candidates.
That said, I am a native speaker of English with a lot of writing and editing experience, and my
understanding is that you do need native speakers to proofread and edit documents because of
all the cross-border deals you do here. So, I feel that my skill set could still be helpful.
Also, I have other skills that many candidates lack; for example, I have a computer science
minor and I know VBA, C++, and Python fairly well, and banks increasingly look for
programming knowledge to help automate tasks.”
5. Why haven’t you taken any accounting or finance classes before? Do you really know the
material?
Say that you decided on finance relatively late, so you didn’t have time for formal classes. Point
to your independent study, certifications, and classes, and offer to prove yourself.
Sample “Good” Answer: “I haven’t taken formal classes in school because I committed to my
Materials Engineering major in my second year, and by the time I became interested in banking,
it was too late to switch majors and take more relevant classes.
But I have learned a lot on my own via self-study, books, and several M&A case competitions I
participated in.
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I’m also studying for Level I of the CFA right now, which requires knowledge of accounting and
finance, and I knew enough about valuation to complete several stock pitches for the student
investment club.
I’m happy to complete a modeling test or other evaluation as well.”
6. I see that you’re a liberal-arts major. How comfortable are you with math? Can you use
Excel?
You can use a similar approach to the question above.
Sample “Good” Answer: “I am a liberal-arts major, but I’ve used math quite a bit outside of my
classes, and I’m comfortable with numbers and Excel.
For example, I served as the Budget Chair for the student film organization I was in, and I
helped collect fees from members, fundraise, plan events, and pay expenses; I used Excel for
planning and forecasting expenses associated with film projects.
Also, in my strategy internship last year, I had to do market analysis using Excel and ‘back into’
many numbers using rough estimates.
I’m happy to complete any Excel or math test as well.”
7. You’ve done mostly engineering internships in the past. How do I know that you can speak
with clients and senior executives?
Stretch the definition of “clients” to include any team activity or case where you had to speak
with other humans to get results.
Sample “Good” Answer: “I have done mostly engineering internships, but in each internship, I
worked in a team and often had to speak with the sales and marketing staff to explain our
products. Also, sometimes I spoke with clients directly to walk them through features.
For example, when I worked in the Google Adwords team, I had to explain a new ad bidding
feature in clear, concise terms to sales reps, and I also wrote the documentation for it.
When I worked at Facebook, the advertising team had me speak directly with a few Fortune
500 clients to walk them through ways to optimize their ad campaigns.
So, I’m confident I can speak with clients the same way in banking.”
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8. It seems like all your work experience has been quantitative. Can you write well enough to
work in investment banking?
It’s the same approach as above: Point to evidence of your writing skills and offer to send
writing samples.
Sample “Good” Answer: “It’s true that I’ve completed quantitative internships, but I have had a
lot of writing experience as well, so I’m confident I could do what’s required in banking.
For example, I wrote a weekly column for my student newspaper in university, and I often
edited other students’ submissions.
Also, in my corporate finance rotational internship, I had to write an instruction manual for
some VBA macros we created; they were intended to help the marketing team, so the
instructions had to be clear and concise.
I may not be the best creative fiction writer, but I can explain technical concepts clearly, and I’m
happy to submit samples if you want to see them.”
9. You’ve never worked in investment banking before. Why do you think you have skills that
are relevant to this industry?
Start by explaining, briefly, the skills that are required in investment banking (which you should
know from the rest of this guide), and then explain how your previous work experience has
given you similar skills.
Sample “Good” Answer: “I haven’t worked in banking before, but, from what I know, you need
the ability to work long, stressful hours, analytical and financial skills, attention to detail, and
teamwork and client management skills.
I’ve developed those skills in my time in corporate law at Wilson Sonsini, where I often worked
with technology clients completing M&A deals. I had to advise them on their best legal options
and read through hundreds of pages of documents on short notice to do that.
Also, I took several corporate finance classes in law school, and I’ve learned on my own from
online courses and books; I’m confident I can join and immediately add value to your team by
assisting with technical and deal process work.”
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10. It seems like you became interested in banking at a late stage – after you already had two
years of work experience.
Why didn’t you get into finance as an undergrad?
For this question, you cannot admit that you tried to get in and failed.
Instead, use one of these responses:
1) You became interested very late in the process when it was too late to get the required
sequence of internships (this one works better if you went to a non-target school); or
2) You knew about banking, but you thought you wanted to do consulting, corporate
finance, Big 4 advisory, or something else until you began working full-time and changed
your mind (not as convincing).
When you answer this one, you have to make it clear that you didn’t “just” get interested in IB
– you’ve been interested for years, and it was part of your plan to move closer over time.
Sample “Good” Answer: “Sure. Just to clarify, I became interested in investment banking in my
third year of university, after I had transferred in from a state school. But I didn’t have the
sequence of internships required to win an investment banking internship that year, so I
decided to gain relevant full-time experience and move in afterward.
I joined the Ernst & Young Transaction Advisory Services team to gain client and
accounting/finance experience, and then I joined an independent valuation firm so I could
spend more time on valuation and deal analysis.
Now, I want to move into investment banking and combine the skills I’ve gained in my previous
work experience to work on larger deals and contribute to the entire process from beginning to
end.”
11. Have you ever worked with clients in the past? It seems like all your work experience has
been in internal groups at companies.
Spin all your team/leadership experience and point out that you had to use similar skills when
working with other teams, even if they weren’t ‘external clients.’
Sample “Good” Answer: “Sure. It’s true that most of my experience has been in internal groups
like corporate finance, and, technically, we did not have clients.
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However, at a company like Oracle, the organization is so big that other groups are almost like
external clients because no one knows each other.
So, I still had to introduce myself, build rapport with other teams, and learn how to get the right
information from the key people there, which was critical when we filed our monthly reports
and created budgets for the entire company.
Also, when we presented these budgets to the top executives, we acted as if they were external
clients since we had to understand their top concerns and win their approval. And I’m confident
I could apply these skills in investment banking.”
12. How committed are you to investment banking?
You’ve already done a private equity internship, so how do I know you won’t just go back
there after a year or two?
You saw the private equity internship as a step in your path into investment banking, and you
prefer banking for specific reasons; the internship convinced you not to pursue PE.
You might prefer IB to PE because you spend a lot of time monitoring portfolio companies and
sourcing deals in PE, compensation is less correlated with short-term performance, and you
gain broader deal exposure and modeling experience in banking.
Sample “Good” Answer: “I saw my private equity internship as a way to get deal experience
and learn more about modeling and valuation. I found a local firm that needed interns, and I
thought it would be more relevant than other options like wealth management.
I learned a lot, but the internship convinced me not to enter the field: You spend a lot of time
monitoring portfolio companies and sourcing deals in PE, and you don’t get exposed to a wide
variety of deals – just buyouts and growth equity investments.
Also, your performance and compensation in PE aren’t necessarily linked to what you did in one
year. I prefer working on varied deals rather than monitoring companies, and I want to earn
money based on my performance in the year, so I prefer banking to private equity.”
Of course, the interviewer will know you’re probably lying… but you still have to say something
like this.
13. Can you work 80 hours per week? Your past jobs have had 40-50-hour workweeks.
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The only way to answer this question is to point to examples of when you’ve worked long hours
over extended periods in the past.
Sample “Good” Answer: “Yes, I’m confident I can work 80 hours per week for long periods
because I’ve done it in the past.
For example, in my audit role at PricewaterhouseCoopers, it always got busy during tax season,
and my work hours increased to 70 hours per week for 3-4 months at a time.
I was also studying for Level I of the CFA at the same time, and I was organizing university
alumni events in my area, so I was effectively working and studying for 80-90 hours per week
over several months. I know what’s required with the hours, and I’m confident I can do it
again.”
14. From your resume, it seems like you don’t have any hobbies or interests.
What do you do for fun?
You cannot say, “Nothing; I just work and study all the time” for this one – even if that’s true.
You have to spin a student group, an upcoming trip, a study-abroad experience, or movies, TV
shows, or sports into sounding significant.
Sample “Good” Answer: “You’re right, I must have run out of space to list my hobbies and
interests at the bottom!
For fun, I watch a lot of sports – I’m confident the Giants will win the Superbowl again one of
these decades – and I also play poker competitively.
I also studied abroad in South America and lived in Colombia for a few months last year.”
15. Why do you want this job? You would join at a more junior level, and you’d take a pay cut
in the process.
Point out that the fact that you’re taking a pay and seniority cut means you’re serious about
this move, and give an example of when you did something similar in the past.
Sample “Good” Answer: “I’m making the move because investment banking is my long-term
goal. I know I’ll earn less and come in at a more junior level, but that shows that I’m serious
about the transition – if I weren’t, it would be much easier to stay in my current role.
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Also, I’ve made these types of sacrifices before. For example, when I joined the corporate
development team, I started as an entry-level Analyst even though I already had several years
of work experience in the data science team at Procter & Gamble.
I was fine with that because I knew it was the right long-term plan for me, and I’m fine with
lower compensation and seniority here for the same reason.”
16. I see you’re from [China / Korea / India / Russia / Other Country] originally.
Are you planning to stay in the U.S. or U.K. for the long term?
Yes, you are planning to stay in your new country for the long term. Point to evidence of that
plan, such as friends, family, and other “roots” in this country.
There are many other variations of this question: Why are you applying to this office rather
than one in an emerging or frontier market? Do you fit in with the business culture here? Are
you sure you won’t go back home in a year or two?
But you can answer all of them with the same points: You plan to stay here for the long term,
you have roots here, you know the culture, and you’d rather be here than anywhere else.
Sample “Good” Answer: “My plan is to stay in the U.S. for the long term and, ideally, keep
working here in New York.
I did my first internship in China, but everything since then has been in the U.S., and I feel more
at home in the business culture here. Also, around half my family lives here now, and most of
my friends – even the ones originally from other countries – live here as well.
Countries like China have some advantages, such as higher growth potential, but I’d rather
work in the most developed capital markets so I can get the best deal and client exposure.
Also, I’m more interested in staying here and working on cross-border deals with Asian
companies than I am in going back home to do the same thing.”
17. It looks like you’ve had several work experience gaps where you weren’t working for 3-4
months at a time. What were you doing?
This question is almost a “Weakness” one, but it’s asking about specific experiences rather than
personality or skill set weaknesses.
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To answer it, pretend that you did something constructive in each work experience gap, even if
it’s a huge stretch.
Sample “Good” Answer: “Sure. I have a few gaps in my work experience because I sometimes
took time off between one job ending and another one beginning to do volunteer work,
complete certifications, or learn new skills.
I didn’t list all of that under ‘Work Experience’ on my resume to save space. But, for example,
when I quit my job at Deloitte three years ago, I went to Costa Rica to learn surfing and study
for the Level I of the CFA, which I later passed.
In another gap, I did volunteer work in the Dominican Republic and helped the country recover
from a natural disaster, and I did a short internship with a local investor there. So, I’ve always
learned new skills or done work during these gaps.”
18. You’ve changed jobs twice in the past two years, and now you’re trying to change jobs
again.
How do I know you won’t leave our firm in less than a year?
Emphasize that you changed jobs twice because it was in your original, long-term plan to do so.
You won’t change jobs yet again because investment banking was your plan all along.
Sample “Good” Answer: “Since I became interested in investment banking late in the game –
my last year of university – I knew I’d need to gain relevant full-time experience and then move
in from there. I also knew I’d need multiple jobs to do that.
I had a full-time return offer in KPMG’s audit team, and I accepted it to gain client experience
and improve my accounting and finance skills. But I knew I’d also need deal and valuation
experience, so I had always planned to move to TAS or an independent valuation firm.
I went to RSX Partners, a boutique valuation firm, and worked on purchase price allocations,
valuations, and other M&A-related assignments.
So, I didn’t move around randomly: It was part of a long-term plan where I’d gain the right skills
from multiple jobs and then use those skills in investment banking.”
19. Why didn’t you get a full-time return offer from your internship?
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We covered the possible answers to this question in the section above, but your main options
are to say that you don’t know your status, the bank didn’t hire anyone, the culture wasn’t a
good fit, or to admit you screwed up in the beginning.
Sample “Good” Answer 1: “I performed well, but, unfortunately, my group decided not to hire
anyone this year, and the interns in other groups had all already accepted offers. My VPs
offered to help with a few referrals to other banks, and I accepted their help.”
Sample “Good” Answer 2: “I enjoyed the work in my group, but I wasn’t a good fit for the
culture, which they pretty much told me halfway through. Everyone there was incredibly
competitive, and most people had played football at the same 2-3 universities; I came from a
very different background and didn’t ‘mesh’ well with the team.”
Note: This answer only works if you’re applying to non-IB groups or very different banks. Most
large banks have similar cultures, so the interviewer will be skeptical if you cite ‘cultural fit’ as
your reason for not getting a return offer.
Sample “Good” Answer 3: “Honestly, I made a lot of mistakes at the beginning of my
internship. I improved a lot by the end, but the senior bankers still remembered those early
mistakes.
I was a bit too loud in the beginning and socialized with the other interns too much; I quickly
realized I had to focus on work, which I did, including several 100-page pitch books and
presentations by the end.
But the Office Head was still skeptical, and they only gave an offer to 1/10 interns there, so I did
not receive it.”
20. You went to business school in Los Angeles, but you want to work in investment banking.
Why didn’t you go to school in or near New York City instead?
With this question, you need a specific reason for attending the MBA program you did.
That reason is usually that you were working full-time in the area and wanted to continue
working during a part-time or evening program.
You could also say you were interested in an industry in this area (e.g., tech for San Francisco or
energy for Houston).
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Then, emphasize that you do want to be in NY (or London, HK, etc.) because it’s the center of
deal activity in your region, and you have friends and family there.
Sample “Good” Answer: “My full-time software sales job before business school was in LA, and
I completed a part-time/evening program in the area so I could keep working and apply the
knowledge from my MBA program to the job itself.
Also, my school has a good track record of sending students into investment banking, and
there’s a good alumni network in the finance industry, so I thought it was a fine choice.
With that said, I want to be in New York when I start working in banking full-time because it’s
the place to be, and there’s far more activity than anywhere else in the U.S. I also have a lot of
friends and family in the area since I grew up on Long Island.”
21. The person in the other room has perfect grades from Harvard and Oxford.
Why should I hire you over him?
Point out that it’s the person who does the work, not the degree. Also, point out that you had
to put in far more effort to get into this room than the other person did.
You’re also more motivated to do banking for the long term; almost everyone from “elite
schools” wants to get into private equity ASAP.
Sample “Good” Answer: “You should hire me over him because I’m more motivated, I’ve
worked harder in the past, and I’m more committed to investment banking for the long term.
Coming from a non-core school, I had to send out over 1,000 cold emails just to win interviews,
and I made 5 separate weekend trips to New York – and that was just to win my first internship
at a middle-market bank last year.
I was rated the top intern in my class in that internship, and I outperformed students at higherranked schools because it’s the person who does the work – not the degree.
I’m willing to work more than anyone, I can immediately add value to your team, and, unlike
most students at elite schools, who want to leave for private equity right away, I want to stay in
banking for the long term.”
22. What’s your greatest fear about investment banking?
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Your “real” greatest fear might be gaining weight, losing all your friends, or dying of a cocaine
overdose, but you can’t say any of that.
Instead, say that you’re worried about not getting the experience you want or not getting
closed deals, which limits your development.
Sample “Good” Answer: “My greatest fear about investment banking is the volatility of the
markets and how you can put a lot of work into deals, only to see negotiations fall apart at the
last-minute.
Coming from a consulting background, I like how you get to see more concrete results in
finance, especially with M&A deals. But at the same time, many deals do fall apart, especially in
recessions and crises.
I know I’ll eventually get the right experience as I work in banking over the long term, but I am
worried that in my first few years, I may not learn as much if too many deals fall through.”
23. If you don’t get into investment banking, what’s your “Plan B”?
Ideally, you’ll be able to point to standing offers that you have from other, finance-related firms
(consulting, Big 4, corporate finance, etc.).
If you don’t have any offers, say that your long-term goal is still investment banking, but if you
don’t win an offer, you’ll work elsewhere first.
And make sure you state that you think you will win an offer in the beginning…
Sample “Good” Answer: “Sure. I think I am well-positioned to win an offer at your firm since I
have previous banking internships, good grades and test scores, and good recommendations
from my past bosses, but if I don’t win an offer, I will apply for valuation advisory roles at Big 4
firms or corporate finance roles at normal companies instead.
I haven’t done that yet because I’ve been 100% focused on investment banking. But if I don’t
win an offer, I’d go to one of those firms first, gain client, deal, and finance experience there,
and then move into investment banking after that.”
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Recruiting Process Questions & Answers
These questions are not particularly difficult, but sometimes it’s tough to strike the right tone in
your answers.
For example, if you get a question such as “Where else are you recruiting?” you have to answer
slightly differently depending on your level.
Also, sometimes it’s tricky to know how much you should tell the interviewer and how much
you should leave out.
1. Which industries are you recruiting for?
At the MBA level or above, you must say, “only investment banking” or you will be dinged
immediately.
As an undergraduate, you can get away with: “I’m focused on investment banking,” but admit
that you would consider other options if you don’t win an offer.
Sample “Good” Answer: “Only investment banking.”
2. I don’t believe you. Everyone has a backup plan. What’s yours?
Say that you are focused on investment banking first because it’s your #1 choice and it has the
earliest application deadlines.
You believe you’ll win an offer, but if you don’t, you’ll consider related options, such as
corporate finance/development, Big 4 advisory, or valuation roles at an independent firm.
Sample “Good” Answer: “I am focused on investment banking now because it’s my top choice,
and it has the earliest application deadlines. I’m confident I’ll win an offer, but if I do not, I’ll
consider related fields, like valuation or advisory work at Big 4 firms or corporate finance or
corporate development at large companies.”
3. OK, fair enough. Within banking, which other firms are you applying to?
You do want to name other banks that are about the same “level” (bulge bracket, elite
boutique, middle market, regional boutique, etc.).
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Name dropping helps your case because it gives you “social proof” and shows the bank that
other banks like you. This firm is still your top choice, but you do have other options.
Avoid mentioning firms at different levels if at all possible.
If you interview with a middle-market bank and you say that you’re also speaking with Goldman
Sachs and Morgan Stanley, the smaller bank may write you off, under the assumption that
you’ll accept an offer at a larger bank over them.
Sample “Good” Answer: “The investment banking division at JP Morgan is my first choice, and I
would love the opportunity to work here if I receive an offer.
However, I am also applying to a few other large banks, including Morgan Stanley, Bank of
America, Barclays, and Nomura.”
4. Have you received offers from any other firms? Where are you in the interview process?
If you have received an offer elsewhere, you need to mention it because it will instantly double
your desirability.
If not, say that you’re still going through interviews with other firms and haven’t yet finished
your final rounds.
If you already went through final rounds at another bank, you may want to leave out that detail
because you’ll lose some credibility if you say that you don’t know your status yet.
Sample “Good” Answer: “I’m going through the initial interviews at Morgan Stanley and Bank
of America, and I’m scheduled for final-round interviews at Nomura and Barclays next week.”
5. So, you’re saying you haven’t won any offers yet.
At this point, the interviewer is playing “bad cop” and trying to annoy you.
Instead of losing your cool and saying, “No, not yet,” flip it around and remind him/her that you
haven’t finished interviews yet.
Sample “Good” Answer: “Well, I haven’t finished interviews yet, and I’d need to complete finalround interviews to know my status.”
6. Which groups within investment banking are you most interested in?
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With this question, you want to show more ‘humility’ and say that you’d be very grateful for the
chance to work anywhere within IB at this firm, but that if you have the choice, you do have a
few preferences.
You don’t have to rank your preferences, but you should state that the interviewer’s group is
among your top choices.
If you’re at the MBA level, you need to tie your preferred group to your pre-MBA work
experience. You’re at a big disadvantage if you don’t do this since almost everyone has an
industry specialization at that level.
Sample Undergraduate-Level “Good” Answer: “If I win an offer at JP Morgan, I would be
grateful for the chance to work in any group within investment banking. But if I had the choice,
I would prefer Leveraged Finance, M&A, or Industrials, as I want broad exposure to M&A and
debt deals, and Industrials offers great variety.”
Sample MBA-Level “Good” Answer: “I worked in Cisco’s business development and corporate
finance team before my MBA, so I would prefer to work in the Technology or TMT team, if
possible, so I could use my knowledge of the industry. But I would be open to other groups as
well if I’m fortunate enough to win an offer here.”
7. I see that you’re also interviewing with the M&A team here today.
Do you prefer us – Healthcare – or M&A?
You’d gladly accept an offer from either group. If you get an offer from both, you’d have to
think about it more and get back to them.
This one might not be a great answer under normal circumstances, but if you’re interviewing
with multiple groups on the same day, you don’t want to rule one group out.
Sample “Good” Answer: “I like both groups and I’d gladly accept an offer from either one. If I’m
fortunate enough to receive offers from both, I’d have to think about it more and get back to
you – it’s also hard to say since I haven’t completed all my interviews yet.”
8. I see that you did a pre-MBA internship in private equity.
How do I know that you’re not going to work here for a year or two and then go back to
private equity?
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You did this internship because you wanted to gain deal experience and learn the key technical
skills, but you had always planned it as part of your pathway into investment banking.
You can also cite reasons why you prefer banking to PE, such as the ones discussed in the
sections above (broader deal exposure, more time spent doing deals, more of a link between
performance and compensation in a single year, etc.).
At the MBA level, you can point out that there isn’t a set path into private equity for Associates,
so this plan wouldn’t make much sense.
Sample “Good” Answer: “Sure. I did the private equity internship at O’Sullivan Capital to gain
deal experience and learn the key technical skills. I was coming in as a career changer, and I
knew I’d need more relevant experience to win banking roles.
But I always saw it as a steppingstone into investment banking; I’m more interested in banking
because I like advising clients, I want to spend my time working on deals rather than monitoring
portfolio companies, and I want to be judged based on my performance in a given year.
Also, there isn’t much of a path into PE at the Associate level, so it wouldn’t make sense for me
to move into banking first if my long-term plan is not banking.”
9. OK, but then why didn’t you do a pre-MBA investment banking internship?
It was an issue of availability: Far more buy-side firms offer these pre-MBA internships, and
large banks rarely want to hire candidates at that stage.
Sample “Good” Answer: “Very few banks, especially the large banks, offer pre-MBA
internships, and I found more private equity firms that wanted to hire incoming MBA students
for a few months.
Also, the role at O’Sullivan seemed more relevant to investment banking because I would work
on deals. Some of the boutique banking roles I found included a lot of sourcing and pitching but
not much deal work.”
10. I see that you applied to our investment banking rotational program when you were a
sophomore last year.
Why didn’t you win an offer, and how have you changed since then?
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Banks are rarely organized enough to track this information, but an individual interviewer might
remember you.
Say that you didn’t know as much about accounting or finance back then, or you didn’t have as
much work experience, or you didn’t have as high a GPA.
Then, point out how you’ve made improvements in that area over the past year.
Sample “Good” Answer: “Sure. I don’t know exactly why I didn’t win an offer, but I believe it’s
because I didn’t know as much about accounting and finance as other candidates. My
interviewers thought I was a good fit, but they mentioned that I had trouble with the more
difficult technical questions.
Since then, I’ve completed a boutique investment banking internship at a local firm and taken
additional accounting and finance classes, and I feel more confident in my technical
knowledge.”
11. If I gave you an offer right now, would you accept it?
“Yes, right away. Show me where to sign.”
12. Do you have any questions for me?
Many interviewees are obsessed with this question, even though it barely makes a difference.
You could ask about the interviewer’s background, what surprised him/her the most, the types
of deals the bank is working on, or the qualities made previous interns successful.
Do NOT ask about how much money they earn, what an average day is like, or how many hours
they work; you can find all that online in a second.
If you’ve already been through multiple interviews, you don’t “need” to ask yet another
question at the end of your 10th interview.
You could say, “Actually, this is my 10th interview of the day, and I think I’ve already gotten
answers to all my questions,” and the other person will understand.
Sample “Good” Answer: “Sure, can you tell me what the most surprising part of the job was
when you first started working in this team?”
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Resume/CV and Academic Experience Questions & Answers
The single most important question about your resume/CV is the one in the previous module of
this Interview Guide: “Walk me through your resume/CV.”
We are not going to cover that question or related questions (“Tell me about yourself,” “Why
are you here today?” etc.) here because it would be repetitive.
If you have transaction experience in investment banking, private equity, corporate
development, corporate law, Big 4 advisory, corporate banking, or related fields, you’ll have to
spend time preparing for deal discussions as well; see the next few lessons.
After those topics, everything else is far less important, especially if you’ve taken the time to
prepare your 3 short stories.
Questions about your resume are similar to “Weakness” questions because they’re designed
to find exaggerations, entries you can’t explain, and other flaws.
For example:
•
You listed proficiency in a foreign language on your resume. Can you answer questions
in that language?
•
You went to business school after working at a Big 4 firm for 2-3 years. Why did you do
an MBA instead of networking your way into banking directly?
•
Why did you quit a job or turn down a return offer from an internship? Do you have
sound reasoning, or did you do it randomly?
So, if you have not explicitly thought through every item on your resume, you should do so
now!
If you don’t know VBA that well, delete it. If you last spoke French in high school, don’t even list
it. If you can’t remember what you did on one M&A deal, remove it.
1. What are the 3 most impressive entries on your resume?
This question should be easy because you can answer it with your 3 short stories: The “Success”
one, the “Failure” one, and the “Leadership” one.
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You could spin your “Failure” story as a non-failure or make it sound less serious, which works if
you had an extremely challenging goal (e.g., starting a multi-million-dollar business while in
university).
You could also use a different experience and give 1-2 sentences of description for that instead.
Sample “Good” Answer: “My most impressive experiences are my strategy and finance
internship at IBM, my math tutoring business in university, and my Treasury internship at a
local tech startup.
At IBM, I helped analyze thousands of financial transactions, found the most time-consuming
processes, and suggested ways to automate them, which saved thousands of hours per year –
the same as several full-time jobs.
In my second year of university, I started a math tutoring business and won dozens of clients,
hired sales reps, and expanded into new regions; I shut it down because I wanted to focus on
school and gain more finance experience.
Finally, in my Treasury internship, I helped the firm comply with its Debt covenants by working
with different departments to move around Cash right before the reporting deadline, which
saved the company thousands in fees and interest.”
2. What’s your single most impressive work experience?
For this one, tell your “Success” or “Leadership” story in a bit more detail.
Sample “Good” Answer: “My single most impressive experience was my recent corporate
finance and Treasury internship at the local technology firm. At first, I mostly did weekly and
monthly reporting tasks and helped my Manager determine the firm’s Cash, Working Capital,
and liquidity.
But they began to trust me with more and more work, and by the end, I was doing a lot of my
Manager’s tasks as well.
The firm had raised debt from a venture lender, and it was in danger of not complying with a
minimum Cash covenant one quarter.
I spoke with the different departments and found a few that had excess Cash, and then I
worked with them to make the transfers back to the parent.
As a result, the company complied with its covenants, which prevented the interest rate from
increasing by 2%. The company also avoided thousands in fees.”
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3. What did you do in [Internship/Full-Time Work Experience Entry Name]? Tell me about it.
Hopefully, the interviewer is asking about an entry for which you’ve already prepared one of
your short stories.
If not, you’ll have to come up with something on the spot, but this shouldn’t be too difficult if
you’ve already reviewed each entry on your resume before going in.
Make sure you mention 1-2 specific tasks or accomplishments, just as you would in your other
stories, and that you explain how this work experience led you in the direction of IB.
If this experience was an IB internship, explain why you’re now applying to a different bank or
group.
Sample “Good” Answer: “Sure. In my wealth management internship at Merrill Lynch, I worked
with 4-5 relationship managers and investment professionals to advise clients, respond to
requests, and create new portfolios.
My biggest contribution was reviewing one client’s holdings, realizing that they were taxinefficient because of constant purchases and sales, and coming up with an alternate structure
that mirrored the client’s strategy but with ETFs instead. The client saved over $10,000 each
year as a result.
I also used VBA to automate the portfolio review process, which saved the investment
professionals several hours of time each week.
Overall, I liked the internship, did well, and received good reviews, but also decided that I
wanted to work in investment banking to advise larger clients and work on deals rather than
monitoring portfolios.”
4. I see you’ve listed [the CFA / a financial modeling course / another training program] on
your resume. Can you explain what you’ve been doing for that?
Make sure you tie the course, test, or certification to the skills you use in investment banking.
The connection is obvious for a financial modeling course or M&A case study, but it’s less
obvious for certifications like the CFA, CPA, or CAIA.
Sample “Good” Answer: “Sure. I’ve been spending about 5-10 hours per week studying for the
Level I exam of the CFA, which is in December this year.
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I’ve been preparing by reading, completing Excel-based exercises, taking practice exams, and
joining a study group that covers key topics each weekend.
I know the CFA is not 100% relevant to investment banking because it tests broader topics and
is theoretical rather than practical, but I’m coming in as a career changer with engineering
experience, so I wanted to pass Level I to prove that I’m serious and that I have the required
knowledge.
Also, the topics on financial reporting and quantitative analysis are relevant to banking since
you spend so much time on accounting and valuation.”
5. I see you’ve listed [Hobby / Sport / Activity] on your resume. Can you tell me about it?
This question is in the “common sense” category, and we shouldn’t need to explain it too much.
It’s good to pick a team sport so you signal your teamwork and leadership skills to the
interviewer, but it’s not critical to do so.
Don’t “over-sell” the skills you gained from this hobby, sport, or activity; they understand
what’s required. You don’t need to go into contortions to explain how scuba diving is relevant
to corporate valuation.
Sample “Good” Answer: “Sure. I recently got my black belt in Judo after almost 9 years of
training. It took a lot of work to reach this level – 3 days per week for 9 years, with almost no
weeks off the whole time.
In each training session, I spent ~2 hours at the dojo sparring with others and learning new
techniques, and I had to balance that with schoolwork, activities, and part-time jobs in several
years.
I also got quite a few muscle injuries when I was training, but I’m glad I did it because of the
discipline, strength, and skills I gained in the process.”
6. You wrote here that you’re fluent in [Language Name].
Can you tell me about your most recent internship or job in [Language Name]?
You’re setting yourself up for disaster if you list a language on your resume but can’t back it up
– you can’t “fake” your way through it if the interviewer also happens to know the language.
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Remove the entry if you don’t know the business vocabulary; being able to order food at a
restaurant isn’t good enough for investment banking.
You could also indicate that you have “Basic” or “Conversational” knowledge of a language and
then explain that you can’t use it well enough for business.
But you’ll look very silly if you’ve called yourself “proficient” or “fluent” in a language but you
can’t explain an M&A deal in that language.
There is no sample answer for this one because it’s the same as any other work experiencerelated answer but in a different language.
7. Why did you quit your job in the [Company Name] [Group Name] team after you were
promoted twice?
This answer should come directly from your main “story” – the 1-2-minute version where you
explain your career transitions and why you want to move into investment banking.
Say that you did well in the role, you liked your team, and things were going well, but your
career goals changed and you decided to move elsewhere.
Sample “Good” Answer: “Sure. I enjoyed my time at IBM, I liked my team, and I did well there,
as I went through rotations and worked all over the U.S. and Europe in corporate finance.
I left the job because I decided that I wanted to work on M&A deals instead of doing the
monthly and quarterly reporting common in corporate finance roles.
I became very interested when IBM acquired a smaller startup, Cleversafe, to expand its
presence in the storage market. I liked the due diligence and financial analysis I assisted with in
that deal, and I became more and more interested in M&A over time.
Moving to corporate development at IBM wasn’t an option, so I decided to join KPMG, work in
Transaction Advisory Services there, and then move into investment banking.”
8. OK, but why did you quit before you started working at [Other Company Name]?
Isn’t it better to stay in one role while you look for another one?
It’s best to point to a logistical reason for this one, such as your geography making it very tough
to interview.
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It’s risky to say, “I didn’t have enough time to interview” because the interviewer may think,
“OK… if he/she doesn’t have enough time in a 60-hour-per-week role, how will he/she ever
handle banking?”
You might be able to use this response if you were working banking-like hours, but most jobs
are not that intense.
Sample “Good” Answer: “You’re right; normally, it’s better to find something else when you’re
still working full-time.
However, the rotations at IBM made it extremely difficult to interview for other roles because I
went to a new place each month, and these towns were often in the middle of nowhere, very
far from major financial centers.
Whenever I reached second-round interviews, firms wanted me to interview in-person, and it
was almost impossible to go back and forth to New York each month and miss days of work.
Also, I felt I’d get faster results if I dedicated myself to recruiting instead of spending only a few
hours per week on it. And I had other corporate finance offers if I had wanted to return.”
9. Why did you attend your university?
The answer to this question should come directly from your main “story,” so you should not
need to prepare too much here.
You probably won’t get this question if you went to an Ivy League school, but you may get it if
you’re at a non-target or other non-elite school.
As long as you have a rationale beyond “The parties were great!” – a scholarship, the
academics, the location, the study-abroad options, etc. – this one should be easy.
Sample “Good” Answer: “Sure. I went to Purdue because I’m from Indiana originally, the
university had a great academic reputation, and I received a generous scholarship there that
covered 90% of my tuition and living expenses.
It has well-known engineering and business programs, and I was interested in both. I also liked
all the sports teams since I follow a lot of college football and basketball.
I did win admission to a few out-of-state universities that were higher in the rankings, but they
would have been much more expensive, and I wanted to graduate with as little debt as
possible.”
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10. Why did you attend an MBA program after you already had 2-3 years of work experience?
Couldn’t you network your way into banking directly?
Point out that if your career is “different” enough (e.g., marketing), it is extremely difficult to
network your way into investment banking after you’ve worked for a few years.
Even if you’ve done something closely related, such as Big 4 advisory, it gets more difficult the
longer you wait.
You can also say that you received feedback from bankers at all levels that indicated you’d need
an MBA to make the switch.
Sample “Good” Answer: “In some cases, you can network your way into banking directly, and I
tried doing that for about 6 months. I figured that my advisory experience at Ernst & Young and
the finance and business development work I did at my own startup would help me.
But 90% of the bankers I spoke with said that I would be perceived as a ‘career changer’
candidate since I had started my own company – even though I left and worked in a finance
role afterward.
These bankers all recommended that I complete a top MBA program to make the transition
into investment banking, so I took their advice.”
11. What were your favorite and least favorite classes in university or business school?
Again, “common sense” applies to this one: Don’t say that your accounting or finance class was
your least favorite one, and don’t blame the professor for making the class bad.
And don’t say that your basket-weaving class was your favorite one because it had a lot of
attractive students or had no homework.
You don’t have to say that a finance or accounting class was your favorite, but try to use a more
serious example.
Sample “Good” Answer: “My favorite class was an English course that focused on
Shakespeare’s comedies, like A Midsummer Night’s Dream and The Tempest.
The professor was incredible and sometimes spent an entire class analyzing a few lines of one
scene, but she still managed to engage the entire class with group activities and discussions.
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My least favorite was a behavioral psychology class where the goal was to micro-analyze the
simplest of human behaviors, such as eating. I thought it went into too much theory, even
though the professor did his best to make it fun.
Also, there weren’t any group projects or discussions in the class, and I tend to work best in
teams.”
12. Why did you study abroad in [Location Name], and what did you do there?
Mention some of the fun trips you took and the activities you participated in, but also make it
clear that you did learn something when you were there.
The stereotypical culture of investment banking is “Work hard, play hard,” and you should play
up that angle when you answer this question.
Sample “Good” Answer: “I went to Beijing for a semester to learn Mandarin and to attend the
Chinese Business Studies program at Peking University.
It was a great program since we got to meet industry leaders, tour the headquarters of Fortune
500 companies, and learn about the entire economy.
I also got to visit the Great Wall, the Yangtze River, and Xi’an, the city with the Terracotta Army.
One time, I even appeared on a Chinese TV show about foreigners living in the country and
learning the language and culture.”
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Understanding Banking and Finance Questions & Answers
If you’re reading this guide, these questions should be straightforward.
“Understanding Banking and Finance” questions include:
•
What bankers do and how they advise on M&A and capital markets deals.
•
What different groups at a bank, such as Leveraged Finance and M&A, do.
•
How the process for an initial public offering (IPO) or acquisition works.
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•
How you would summarize recent stock market and M&A activity.
If you’ve done enough research to win interviews in the first place, you should know these
topics like the back of your hand.
A few notes:
1) If you’ve completed an investment banking internship, you are unlikely to get these
questions. Instead, they’ll focus on your work experience and technical questions.
2) You could also get questions on specific companies, markets, and deals, but we explain
those in separate lessons in this module (see the next two).
3) We’re not going to give detailed explanations for most of these questions because most
topics already have in-depth articles on Mergers & Inquisitions (see the Investment
Banking page). We’ll focus on concise answers instead.
1. You’ve never worked in finance before. How much do you know about what investment
bankers do?
“You get it.” You’ve done a lot of research, you’ve spoken with alumni and friends in the
industry, and you can explain the deal process.
Sample “Good” Answer: “It’s true that I haven’t had finance experience, but I’ve done a lot of
research and have spoken with many friends in the industry.
I know that investment bankers act as agents and help companies sell to other companies, raise
debt and equity, and sometimes buy other companies – and they earn fees from closing deals.
On a day-to-day basis, as a junior banker, you help support senior bankers by creating
presentations, financial analyses, and marketing materials such as pitch books and Information
Memoranda for clients. You also help with logistical details, such as scheduling meetings and
calls.
Your goal as a banker is to help clients achieve their goals – whether it’s selling the business or
expanding by raising capital or acquiring other companies.”
2. How much do you know about the lifestyle in this industry? Do you know how many hours
you’re going to work each week?
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“You get it.” You understand the brutal 80-100-hour workweeks, you understand why bankers
work so much, and you’re sure that you can work that much because you’ve worked long hours
over extended periods before.
Sample “Good” Answer: “I’ve done my homework and spoken with a lot of alumni in the
industry, and I know that 80-100-hour workweeks are common for junior bankers, so that’s
what I’m expecting.
You work that much because clients’ demands are unpredictable, and deals can heat up at any
moment, so you always have to be “on call.” And pitches often come up at the last minute,
which means a high-volume of urgent work right before deadlines.
I’m confident I can handle it because I’ve worked long hours over extended periods before – in
university, I woke up at 5 AM each day during football season to train, took classes during the
day, worked part-time after that, and then went to team practices at night, often finishing
around 10 or 11 PM. And I did that for months at a time.”
3. How do companies select the investment banks and bankers they work with?
Companies usually select banks based on relationships developed over the long term, but
sometimes it’s more random and happens as a result of a pitch or “bake-off” right before the
deal process begins (banks compete to win the business).
The selection depends on the team’s comfort with each bank, the banks’ track records, and the
banks’ key recommendations.
Sample “Good” Answer: “Companies select banks based on a combination of factors, including
the long-term relationships they’ve developed, the banks’ track records, and the pitches that
banks make.
Often, bankers start speaking with companies long before a deal ever takes place and advise
them informally over the years, which leads to transactions in the future.
If the bank is known for something specific, such as selling tech companies for high multiples,
the company might factor that into its decision as well.
Finally, each bank’s pitch in a ‘bake-off’ meeting also factors in: Companies pick the bankers
they’re most comfortable with and the ones that give the best recommendations.”
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4. Let’s say that I’m working on an Initial Public Offering (IPO) for a client. Can you briefly
describe what I would do?
Please see our IPO-related articles and videos on M&I and the YouTube channel for
explanations. Here’s a concise answer:
Sample “Good” Answer: “In an IPO, you aim to get the client a good valuation, recruit solid
institutional investors, and support the client’s share price once it goes public.
First, you meet the client and gather financial, industry, and customer information.
Then, you meet with other bankers and the lawyers to draft the IPO registration statement,
called the ‘S-1’ in the U.S., which markets the company to investors.
You receive comments from the SEC and revise the document until it’s acceptable.
Then, you spend a few weeks on a ‘roadshow’ where you pitch the company to institutional
investors. You get a pricing indication at the end, you sell shares to the investors at that ‘IPO
price,’ and then the company begins trading on a stock exchange.
You try to maximize the client’s share price and cash proceeds, win solid investors, and ensure
that the company’s stock price rises after it starts trading.”
5. Walk me through the process of a typical sell-side M&A deal.
Similar to the walkthrough above, you should state the banker’s goals, summarize the steps in
the process, and explain how bankers add value.
Sample “Good” Answer: “In a sell-side M&A deal, the bank markets the company to potential
buyers and helps negotiate a deal for the best price and terms possible.
The bankers start by meeting the company, creating initial marketing materials like the
Executive Summary and Offering Memorandum (OM), and deciding on potential buyers.
Then, they send the Executive Summary to potential buyers to gauge interest, and they respond
to follow-up requests for more information.
Next, they narrow the list of potential buyers by setting a bid deadline and requiring written
Indications of Interest (IOIs) from buyers. Bankers select certain bidders to advance, continue to
send them information, and narrow the list.
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Eventually, they pick the winner, negotiate the Purchase Agreement, and announce the deal.
Bankers try to maximize the price the client receives, but they also add value by negotiating the
other terms and winning competing offers.”
6. Walk me through the process of a typical buy-side M&A deal.
This one is similar to the process above, but now you minimize the price so that your client pays
less. The steps above are now reversed because you approach potential sellers rather than
potential buyers.
Sample “Good” Answer: “In a buy-side M&A deal, the bank helps the client to select the best
acquisition target, minimizes the price it pays, and gets it the best deal terms possible.
First, the bankers spend time doing upfront research on dozens or hundreds of potential
acquisition targets based on what the client wants to buy.
Next, they narrow the list and decide which companies to approach; they conduct meetings
with interested parties and gauge how receptive each one is.
Then, they narrow this list further and conduct more in-depth due diligence on the most likely
sellers. They use the companies’ financial information to come up with offer prices.
Finally, the bankers negotiate the price and key terms of the Purchase Agreement and
announce the transaction.
Bankers add value in this process by minimizing the price, finding potential targets, and getting
the best terms possible.”
7. Walk me through a debt issuance deal.
This one depends on whether you’re selling the debt to external investors – i.e., it’s a Senior,
Subordinated, or Mezzanine issuance – or your bank is keeping the debt on its Balance Sheet.
In the walkthrough below, we’ll assume a “generic” process and note the possible differences:
Sample “Good” Answer: “The process of raising debt is similar to the process of raising equity,
but your goals are different because you want to get the lowest interest rates, covenants, and
best other terms for the client.
First, you meet with the client and gather basic financial and market information.
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Next, you work closely with DCM or Leveraged Finance to develop a credit model for the
company; you analyze the company’s credit stats and ratios in different cases, focusing on the
more pessimistic ones, to assess the most appropriate terms.
Then, you create an investor memo describing the issuance and “selling” the company to
potential investors.
If you’re not syndicating the debt, this memo would be for the bank’s internal credit committee
to win approval for the deal.
If you are syndicating the debt, you would contact potential investors and win commitments to
purchase the entire issuance.”
8. Can you describe what a Leveraged Buyout (LBO) is and how the process works?
You should look at the LBO section within the technical guides since we go into this topic in far
more detail there.
Process-wise, a leveraged buyout is very similar to a sell-side M&A deal since the bank helps a
company sell itself.
The key differences are that the bank pitches the company to private equity firms instead of
normal companies and it may offer Debt financing as part of the deal.
Sample “Good” Answer: “In an LBO, a private equity firm uses a combination of debt and
equity to acquire a company, operate it for several years, and then sell it to realize a return.
The process is similar to the one in an M&A deal: The bank advising the company still sells it
and aims for the best price and deal terms possible.
First, the bank meets with the company, creates marketing materials like the Confidential
Information Memorandum (CIM) and Executive Summary, and makes a list of PE firms to
approach.
Then, the bankers send out the materials to gauge interest, respond to follow-up requests, and
send more information.
The bank narrows the list of potential buyers by setting a bid deadline and requiring Indications
of Interest, and sometimes there are multiple rounds of bids.
After the bank and company pick the winner, they negotiate the terms of the deal. The bank
often offers debt financing from its Leveraged Finance team to support the deal.”
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9. What is a divestiture? How is it different from a normal M&A deal?
A divestiture is the sale of a division of a company rather than the entire business.
The process is the same, but it’s very important to analyze the division on a “standalone” basis
and market it appropriately (e.g., estimate the additional costs when the company no longer
has its parent’s support).
Sample “Good” Answer: “In a divestiture, a company sells a division or business segment
rather than the entire company.
The process is similar to the one in a normal sell-side M&A deal if you’re advising the seller: You
still gather information, create marketing materials, send information to potential buyers,
narrow the list, and negotiate a purchase agreement with the winning bidders.
The differences are that the process can be messier since it’s sometimes harder to sell a single
division, the transaction structures can be more complex, and you have to evaluate the division
as an independent entity and assess the extra employees and infrastructure that it needs.”
10. What’s in a pitch book?
This question is tricky because different types of pitch books vary quite a bit. A pitch book for a
sell-side M&A deal is very different from one for an IPO, debt issuance, or Restructuring deal.
However, there are some common elements; you can focus on those and outline what a
generic M&A pitch book would look like.
If the interviewer wants to know how it differs for equity, debt, or other deals, let him/her ask
about it.
Sample “Good” Answer: “The point of a pitch book is to convince a company to hire your bank
as an adviser on an M&A deal, equity or debt issuance, or another transaction.
First, the bank presents its “credentials” – its recent track record and similar deals it has worked
on – to prove its expertise.
Second, the bank summarizes the company’s options and their key recommendations.
Third, the bank presents a valuation of the company and related financial models; in equity or
debt deals, the bank might show the company’s capital structure and credit stats and ratios
before and after the deal.
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Next, the bank shows potential acquisition targets (for buy-side M&A deals) or potential buyers
(for sell-side M&A deals)
The bank concludes by summarizing everything, giving its top recommendations, and outlining
the timing of the deal.”
11. Imagine that you wanted to create a 1-page “company profile” slide in PowerPoint to
pitch a company to a potential investor. What would you include on that slide?
This question tests whether or not you understand what a “company profile” is, which you
should already know about from M&I, our PowerPoint course, and other sources.
Sample “Good” Answer: “In a profile, you focus on the key qualities that investors care about –
the company’s overall business, its financial performance and valuation, its products and
services, and its customers and geographies.
You could put the name of the company in the header and then divide the slide into four equal
parts.
The top-left quadrant is for the business description, headquarters, and key executives. Put a
stock price chart and the key historical and projected financial metrics and valuation multiples
in the top right.
The bottom left can have descriptions of the products and services, and the bottom right can
show key customers and the geographies the company operates in.”
12. Can you tell me about the different groups at an investment bank?
Most banks are divided into “industry groups” (Healthcare, Retail, Technology, etc.) and
“product groups” (Mergers & Acquisitions, Leveraged Finance, Equity Capital Markets, etc.).
Industry groups work only with companies in one industry, but they work on multiple deal
types – M&A, debt, equity, and so on – while product groups advise on only one deal type but
do so in all industries.
Some groups tend to be more or less technical; the capital markets teams require less modeling
work than M&A or Leveraged Finance, for example.
But it varies greatly by bank and location, and not all banks are set up this way (For example,
Goldman Sachs doesn’t have a dedicated M&A team).
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Sample “Good” Answer: “There are industry groups and product groups at most investment
banks. Industry groups only work within one industry, such as Healthcare, Retail, or Energy, but
they work on all deal types within that industry; they focus on relationship development with
clients and using their industry knowledge to advance deals.
Product groups include ones such as M&A, Equity and Debt Capital Markets, and Leveraged
Finance. Each group executes only one deal type, such as acquisitions or debt financings, but
they do so across all industries.
They become experts in the technical details behind deal execution.”
13. How are Equity Capital Markets (ECM) and Debt Capital Markets (DCM) different from
other product groups like M&A?
ECM and DCM are like “investment banking meets sales & trading” – you still execute deals, but
you need to follow the public markets closely and keep the industry groups in the loop,
assisting with pitch books and client materials.
You advise companies that are issuing debt or equity, but you also spend a lot of time creating
market update presentations and responding to requests from other groups.
Both groups tend to be less technical than M&A and many industry groups, so the exit
opportunities into private equity are often worse (obviously, don’t say this in an interview –
this is just for your own information).
Sample “Good” Answer: “In ECM and DCM, you advise companies on equity or debt issuances
rather than M&A deals, and you spend more time following the markets, spotting trends, and
keeping other groups in the loop on market activity.
Capital markets are groups like a cross between sales & trading and investment banking, and
they’re good if you enjoy following the markets but also doing deals and working with clients.
Your tasks vary based on the deal you’re working on; in a debt issuance, you might analyze a
company’s financial profile and its credit stats and ratios in different cases to determine the
appropriate terms. In an IPO, you would focus on telling the company’s story, valuing it, and
completing the steps required to go public.”
14. What’s the difference between DCM and Leveraged Finance?
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Both groups work with debt and advise companies on debt issuances, but Leveraged Finance is
more modeling-intensive and focuses on debt that’s being used for deals such as acquisitions
and leveraged buyouts.
Leveraged Finance deals mostly with non-investment-grade (i.e., riskier) debt, while DCM deals
with investment-grade debt that companies intend to use for “everyday purposes.”
DCM is also closer to sales & trading, and the group is sometimes considered an extension of
S&T; LevFin is more like a traditional investment banking group.
Sample “Good” Answer: “Both groups advise on debt deals, but DCM focuses on investmentgrade debt, which companies tend to use for “everyday purposes.” DCM is also closer to sales &
trading and is sometimes closely related to fixed-income desks.
Leveraged Finance focuses on non-investment-grade debt, which attracts different investors.
Companies also tend to use this debt for transactions such as leveraged buyouts and M&A
deals.
In Leveraged Finance, you spend more time analyzing deals, while in DCM, you spend more
time following the market and giving information to other groups that need it.”
15. Let’s say you become an investment banker, and you’re hired as the financial advisor for a
company to help it expand its business.
How would you approach this task, and how would you add value as an advisor?
First, you’d assess the company’s expansion goals (e.g., does it want to double sales over 5
years? Go into a new geography or product line? Acquire smaller competitors?).
Then, you’d assess the company’s industry and its financial profile and recommend the best
way to achieve those goals, whether it’s with M&A deals, partnerships, or raising capital.
You would add value by making introductions to potential M&A targets and partners, helping
the company negotiate deals and get better prices, and managing the entire process.
Sample “Good” Answer: “First, I would ask the company for its specific expansion goals – a
certain revenue or profit target, a new geography, or a new product, for example.
Then, I would assess the company’s financial and market profile and determine if it makes the
most sense to acquire other companies, raise capital, set up partnerships, or pursue another
strategy.
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For example, if the company’s leverage ratio is very high and it has almost no cash, acquisitions
make less than partnerships or raising equity to fund organic expansion.
As a banker, I would add value by introducing the management to potential partners and
sellers, negotiating deals, and managing the process to get the best outcome.”
16. A client approaches you and asks whether it should go public or sell to another company.
How would you help the management team think through this decision?
For this one, you have to present the trade-offs of both strategies to the company.
In an M&A deal, there’s a “clean break” for the seller, and sometimes the process is faster, but
the current owners also give up control of the company. They benefit less, and maybe not at all,
from future upside. M&A deals can also be time-consuming and expensive, and many deals fail.
In an IPO, the company sells only a minority stake, so the existing shareholders retain control,
and the company gets additional cash it can use for expansion or other purposes.
But an IPO is sometimes a slower path to growth because the company still has to do
everything itself rather than leveraging the resources of a larger company.
Also, the IPO process demands significant time from management and makes it more expensive
for the company to operate.
Sample “Good” Answer: “I would present the trade-offs of both options to the client and
explain that an M&A deal offers a ‘clean break’ and sometimes a faster process, but the client
will give up most, or all, of its control and won’t participate much in future upside. Many deals
also fail.
In an IPO, the client sells only a minority stake, so shareholders and employees get some
liquidity, but the company keeps operating as a standalone entity and retains control.
But IPOs are time-consuming and don’t necessarily led to higher prices or faster growth.
It comes down to whether or not the team wants to stay with the company for the long term –
if it does, an IPO often makes more sense because the company can continue growing
independently.
If the team does not want to stay, then an M&A deal makes more sense.”
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17. Your Managing Director is meeting with a client, and you have been invited. As he’s
presenting, you notice a mistake in the materials – do you point it out?
NO! This idea is horrible. Never point out or talk about a mistake until someone else notices it
first.
If you mention it, you’ll only hurt yourself: Both you and your MD will look stupid in front of a
client, and the client may not have even noticed it. It’s an “unforced error.”
Sample “Good” Answer: “I would correct the mistake later on when I can do so discreetly, but I
would not point it out in front of the client. Doing so would embarrass both the Managing
Director and me, and there’s no reason to point out a mistake, especially if it’s small.
If the client notices and asks about it, I would quickly address it, but otherwise, I wouldn’t say
anything.”
18. Tell me about a news story you found interesting lately.
You can tie this question to one of your deal or market discussions and use one of those as a
“news story.”
If you don’t want to do that, you could just discuss a recent story you followed – but make sure
it’s related to economics, business, or finance.
If you discuss the opening of a new art gallery, interviewers might think you’re applying for the
wrong job.
Also, stay away from politics, religion, geopolitics, and anything else where people have strong
opinions without knowing anything.
Sample “Good” Answer: “Sure. One story I’ve followed lately is the Federal Reserve’s recent
interest rate increases and plans to increase rates further this year.
They’re doing it because the economy has improved, unemployment has fallen, and there are
signs of rising inflation.
Rates have been extremely low for many years, which distorted financial markets, but the Fed
felt it had to keep interest rates low to boost the U.S. economy.
My opinion is that they should have done this a long time ago – there was no reason to keep
rates near zero for so long. It’s not even clear that low rates boosted economic growth.
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They waited too long, and now is not a great time to raise rates because doing so will increase
the U.S. Dollar’s value when the country wants to reduce its trade deficit.”
19. Tell me about the stock market.
Start by describing the overall market, including how major indices have changed (the Dow
Jones and S&P 500 in the U.S. or the FTSE 100, CAC 40, and DAX in Europe). Then, summarize
deal activity and broader economic trends.
You don’t need to know the exact prices of oil and gold and the exchange rates for major
currency pairs, but you should have an idea of how these figures have changed in the past year.
For example, it’s good to know that oil is currently “around $60.00” and it has increased by 10%
in the past year, but you don’t need to know that it’s exactly $60.87 right now.
Sample “Good” Answer: “Sure. Overall, the stock market and deal activity have both increased
quite a lot this year. The Dow Jones is up 15%, the S&P 500 is up 18%, and major indices in
Europe are also up by 10-15%.
M&A activity is up about 15% over last year’s levels due to deregulation and tax cuts. Debt
issuances have stayed about the same, partially because interest rates are rising, and IPO
activity is up about 10% because recent issuances have performed well.
Unemployment is down to below 5%, but real wages haven’t increased in a long time, and
home prices are falling in many areas because people are renting rather than buying.
Despite that, many people and businesses are optimistic because of upcoming tax and
regulatory changes, and small-to-mid-sized businesses are expected to start hiring more.”
20. Can you pitch me a stock or tell me about a company you admire?
This question is far more common in sales & trading interviews, but you’ll occasionally get it in
investment banking interviews as well.
Doing the comprehensive research for an in-depth stock pitch is time-consuming, and we don’t
recommend it unless you’re also interviewing for public-markets roles such as equity research.
If you don’t have time to research a company in-depth, you could use one of the companies
from your “deal discussions” and repurpose it for this question.
If you do have the time to prepare a dedicated stock pitch, follow these guidelines:
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•
Avoid well-known companies (Google, Facebook, Apple, etc.).
•
Include key financial metrics and multiples and explain why the company is overvalued
or undervalued vs. its peers.
•
Explain the time frame and potential upside in your recommendation.
•
Explain how you might mitigate the downside risk.
•
Aim for 60-90 seconds (150 – 225 words) – your answer can be a bit longer than usual,
but it should still be shorter than your “story.”
Sample “Good” Answer: “I like Aero Dynamix, an aircraft engine manufacturer. It has $500
million revenue and $100 million in EBITDA and trades at around $20.00 per share, at a P/E of
10x, vs. its competitors at 12x. I think its stock price could rise to $24.00 per share, for a P/E of
12x, in the next 12 months.
The company is undervalued by 20% right now because demand has declined in key markets in
Europe, but over 10% of its revenue will come from higher-growth countries in Asia by the end
of the year.
Also, oil prices are down by 15%, and those lower prices will increase traffic and lead to more
aircraft purchases – but the market hasn’t yet factored that into the company’s stock price.
Finally, its margins are about 20% higher than those of peer companies, but the market
overreacted to missed earnings and hasn’t given the company full credit for its efficiency.
The main downside risks are rising oil prices, which you could hedge with call options on energy
companies, and stagnation in emerging markets, which you could hedge by longing blue-chip
companies in developed markets.
Overall, I think Aero Dynamix could rise to $24.00 in the next 12 months for a 20% gain. I would
set a stop loss at $18.00 to limit my losses to 10%.”
21. Let’s pretend that you own a small business, and a larger company approaches you about
an acquisition.
How would you evaluate the larger company’s offer, and how would you make a decision?
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You would focus on price, form of payment (cash or stock), plans for your company, and
cultural/strategic fit with the buyer.
You might turn down the offer if one of those is dramatically off (e.g., the cultures are
completely incompatible), or you might accept it if everything is reasonably good.
You could also negotiate for better terms if you think the buyer might be willing to improve its
offer.
There’s no magical formula you can use to make a decision, but you can give those criteria and
explain how you might weigh them in your process.
Sample “Good” Answer: “To evaluate the offer, I’d consider the price, form of payment, the
larger company’s plans, and the cultural and strategic fit.
Obviously, a higher price is better, but past a certain range, I would pay more attention to the
other terms. I would also prefer to get most of the payment in cash if I plan to leave the
company. Stock might be better if I wanted to stay for the long term.
I would be hesitant if they made me stay for years and years because market conditions can
change very quickly.
Finally, it’s important to fit in with the bigger company’s culture and strategy; if it seems like my
employees wouldn’t be happy there, I would be hesitant to accept the offer.”
22. A client comes to you and says that he/she has $10 million that he/she can invest in
anything. What would you advise the client to do?
Always ask for the investor’s goals first. Are they looking to earn big capital gains over 30-40
years? Are they looking for tax-free retirement income?
What assets interest them, and what is their risk tolerance?
There’s no universal formula for this question, but here are a few guidelines:
•
If the investor is relatively young (20s, 30s), has a longer time horizon, and can tolerate
volatility, a well-diversified portfolio with a significant weighting in equities is best.
•
As the investor gets older and approaches retirement, the portfolio should shift to fixed
income (bonds) rather than equities, and he/she should focus on capital preservation
and income rather than capital gains.
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•
And for someone at retirement age, tax efficiency, capital preservation, and income
generation are the biggest concerns.
Sample “Good” Answer: “First, I’d ask for the investor’s goals and then assess the best strategy
based on his/her goals, risk tolerance, and time frame.
Regardless of the strategy, diversification is critical because $10 million is a substantial amount
for almost anyone. It would be far better to preserve it than to use an aggressive strategy that
might result in a big loss.
If the investor is relatively young – in the 25-35 age range – a higher weighting toward equities
(maybe 60%) might be appropriate, with the remainder in fixed income. Both portions would
be spread across different market segments and geographies.
But if the investor is closer to retirement and cares more about income generation and capital
preservation, then I would recommend a heavier weighting toward fixed income (maybe 80%).
And at some point, it might make sense to shift exclusively to assets like municipal bonds for
tax-free income.”
23. A friend wants to start a laundry machine business and has asked you to invest $500,000
in his new venture. How would you analyze this opportunity and make a decision?
This one is more of a technical question, or “technical question lite,” but there are some
qualitative aspects to it as well.
At a basic level, you would invest if the expected annual return from this venture exceeds the
annual return you could earn from other, similar assets with similar risk profiles (i.e., the IRR
exceeds the Discount Rate).
Alternatively, you would also invest if the Present Value of future cash flows from the business
exceeds your upfront investment (this condition also means the IRR exceeds the Discount Rate).
To test these conditions, you need to project the cash flows from the laundry business by
forecasting its revenue and expenses.
In your answer, you can do that by explaining your thought process behind the estimates.
Sample “Good” Answer: “I would invest if the Present Value of future cash flows from this
venture exceeds the upfront ‘asking price,’ which is $500K in this case.
To estimate those cash flows, I would need to forecast the revenue and expenses. I don’t know
the numbers here, but if we assume, for example, that there are 50 washers and dryers in this
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facility, and that each one is used 5 times per day, that’s 250 “turns” per day. If we say each
wash or dry cycle is $2.00, that’s $500 per day in revenue.
$500 per day in revenue means the annual revenue is 365 * $500 = $182,500. We’ll round that
to $180,000.
We might need one part-time employee to manage the machines, respond to customer
questions, and coordinate maintenance; we can assume $50,000 for all of that.
We don’t have a good sense for utilities and real estate taxes, but they might be around $3,000
per month depending on the square footage.
So, the annual revenue is $180,000, annual expenses are $50,000 + $3,000 * 12 = $86,000, and
the facility generates $94,000 in cash flow, before taxes, each year.
Without even factoring in the Discount Rate, this seems like an exceptional deal because the
business yields almost 20% in the first year.
But we’d need better estimates to say for sure. And we’d have to discount all these cash flows
to their Present Values, add up everything, and compare it to the $500K initial investment.”
Return to Top.
“Why Banking and Why Us?” Questions & Answers
These questions are not that important because you should have already answered them in
your “story.”
If you tell your entire story, and the interviewer still does not understand why you want to work
at this bank and in this team, you have done something wrong.
However, even if you do answer these questions in your story – as you should – interviewers
could still ask you slight variations to confirm your motivations.
So, we’ll present a few examples below of the types of questions you might receive and how
you should answer them.
1. Why are you interested in investment banking despite a lack of prior IB work experience?
There’s only one answer to this question: You developed an interest in investment banking
years ago, and you’ve been moving closer in your work experience ever since.
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While you haven’t worked in banking before, you have moved closer by winning related
internships, such as ones at Big 4 firms.
In most cases, you can restate portions of your story to answer this question.
Sample “Good” Answer: “When I first entered university, I had planned to attend medical
school because most people in my family were doctors. But I changed my mind after working at
a hospital and getting exposed to an M&A deal when a larger medical firm acquired us.
I had already finished half my major and two years of university, so I couldn’t win a banking
internship right away, but I moved closer by completing a wealth management internship and
then a corporate finance internship.
I’ve also spoken with alumni in the industry, learned valuation and financial modeling on my
own, and am confident that I can do the work required in an investment banking role.”
2. What are your long-term plans? Where do you see yourself in 5-10 years, and are you
committed to investment banking?
At the Associate level and above (i.e., MBA recruiting and beyond), the only acceptable answer
is: “Yes, I am 100% committed, and I plan for a long-term career in banking.”
At the Analyst level (i.e., undergrads and recent grads with only a few years of work
experience), you can be a bit more open-ended.
But remember: If you told your story properly, you should have already stated that you want to
work on certain deal types or deals in a certain industry.
Sample “Good” Answer for an Analyst Interview: “As I mentioned in the beginning, I want to
work on healthcare M&A deals because of my background in biology and my valuation
experience, and your group is the ideal place for that.
I am committed to investment banking, and I want to work on deals over the next 5-10 years.
Of course, I’m also in my last year of university, so I can’t realistically tell you that I’ll stay in
investment banking for the next 30 years of my life. I do think that I will be doing something
related to finance and healthcare in the distant future, though.”
Sample “Good” Answer for an Associate Interview: “As I mentioned in the beginning, I want to
become a trusted adviser to industrial companies because of my background at GM, the
interest in M&A I developed there, and the work I’ve done on my own to learn the industry.
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I’m committed to investment banking, and I’m going to make a long-term career out of it.”
3. Why are you moving from a larger bank to a smaller bank? Did you not receive a return
offer at the larger bank?
Let’s be honest: The only reason to move from a bulge-bracket bank to a regional boutique or
middle-market bank is if you didn’t receive a return offer from the BB bank.
If that’s the case, own up to it and refer to all the questions related to this topic in the “Flaws &
Failures” section above.
Say that the bank wasn’t hiring or that you made mistakes in the beginning that hurt your
chances, but that you’re still committed to banking, and you want the hands-on experience
you’d get here.
If you’re moving from a BB bank to an elite boutique (EB), you could say that you’re making the
move willingly because EBs offer some distinct advantages over BBs.
Sample “Good” Answer: “I did receive a return offer at Morgan Stanley, but I’m more
interested in Lazard because I’d be able to focus on M&A and Restructuring deals, and I would
get more client exposure because of the smaller team sizes.
Also, I think I’m a better fit for your culture based on the bankers I’ve met so far.
Finally, I’m interested in a long-term career in banking, and your firm is much better for that
since you offer more independence and more interesting work.
Most Analysts at the bulge brackets are looking to move into private equity as soon as possible,
but I want to stay in banking.”
4. Why are you moving from a small bank to a larger bank? It sounds like your internship
there went well.
It’s easier to explain this move because it’s very common, and larger banks offer distinct
advantages over smaller ones: Bigger and more complex deals, a more structured learning
environment, and more varied deal types.
Plus, better exit opportunities, but you should never mention that.
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Sample “Good” Answer: “Sure. As I said in the beginning, I’m interested in moving to JP
Morgan because of the chance to work on bigger and more complex deals, the more structured
learning environment, and your strong TMT team, which matches my personal interests.
At the regional boutique I interned at, I mostly worked on private placements for healthcare
companies.
I learned a lot about the industry and telling companies’ stories, but I didn’t gain as much
technical exposure as I wanted. Since JPM does more complex and varied deals, I’d gain those
skills here, and I could learn in a more structured way.
Also, your TMT team has a great reputation, including advising on recent deals such as
Symantec’s acquisition of LifeLock, and it fits my interests perfectly since I have a minor in
computer science and previous tech experience.”
5. Why are you interested in us, specifically? You could probably work at many large banks,
given your experience.
This question is tricky to answer because most large banks are quite similar. Large banks differ
because of the people and recent deals they have worked on.
Also, some banks are stronger in certain industries or regions than others; one bank might be
stronger in the Middle East or the Nordic countries than its competitors, even if it has a similar
market share in the U.S.
Sample “Good” Answer: “Most banks’ business models and cultures are similar, so I decide
based on the people and strengths in different industries and regions.
I’ve met a lot of bankers from your firm that I’ve gotten along with really well – including
Associates and VPs such as Mary James, Brad White, and Kate Allcroft, at the information
sessions you held at LSE last month.
Also, your firm has advised on a lot of privatizations in the Former Soviet Union states, like
Georgia and Azerbaijan, and I’m from the region and am very interested in working on those
types of deals.”
6. You said that you want to work at our firm to gain exposure to bigger, more complex deals.
But what if an even bigger bank comes calling next year – would you move again?
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This one will come up if you’re working at a regional boutique and you’re interviewing with a
middle-market bank, elite boutique, or a slightly larger bank.
And it’s a good question: The bulge-bracket banks do work on the biggest deals, so if you cite
that as a reason for moving to a bigger bank, would move to an even bigger bank?
To answer this one, you should say that this bank offers the ideal mix between deal
size/complexity and client interaction, and you don’t want to move to an even bigger firm
because you wouldn’t get as much client interaction.
Sample “Good” Answer: “No, I would not move again. It’s true that I’ve wanted to work on
more complex deals, but I also want client interaction and the ability to work in smaller teams
where Analysts and Associates all contribute.
Your firm offers exactly that – it’s the perfect mix between doing substantial technical work on
deals and being more than just a number.
If I went to an even bigger bank, I might work on larger deals, but I’d also lose a lot of the client
interaction. Teams would be much bigger, so it would be difficult to contribute in the same
way.”
7. Why do you want to work in M&A rather than an industry group, like Technology or
Healthcare?
Link this one back to your interest in a specific M&A deal, an M&A case competition, or
something else like that, and say that you want to specialize in M&A rather than a specific
industry.
Do NOT cite exit opportunities or the ease of moving into private equity for your reasons.
Sample “Good” Answer: “Sure. Just to clarify, I’d be open to working in any investment banking
team if I’m fortunate enough to win an offer at your firm.
But if I could pick, I would choose M&A because of my personal interest in mergers and
acquisitions and the bank-sponsored M&A case competitions I’ve entered in the past.
I also enjoy the technical analysis of deals and the in’s and out’s of regulatory issues and deal
mechanics more than learning a single industry in-depth.
The Technology and Healthcare teams would be great as well, but I would prefer M&A if I had
the choice.”
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8. Why do you want to work in Equity Capital Markets rather than M&A or an industry team?
You like working on deals and following the markets, but you don’t like the markets enough to
be in sales & trading.
You wouldn’t be able to follow different public markets and industries if you were in a single
industry group. And if you were in M&A, you wouldn’t follow the public markets much at all.
Sample “Good” Answer: “Sure. I wanted to say that I’m open to any group at your firm if I’m
fortunate enough to win an offer, but Equity Capital Markets is my first choice.
I prefer it because I enjoy following the public markets in addition to working on deals, and I’m
very interested, personally, in IPOs and the IPO process.
I mentioned earlier how I had followed the $200 million IPO of Aero Dynamix, and I want to
contribute to deals like that in the future.
If I went to the M&A team, I would not get the chance to follow the public markets at all.
And if I joined an industry group, I would focus on that one specific industry, and I wouldn’t
learn about other industries or the public markets for those industries.”
9. Why do you prefer the [Industry Name] group to other industry groups at our firm?
You should have already answered this one in your “story.” If you haven’t, you could use
several factors to explain your interest:
•
Family background (e.g., your uncle does business in this industry).
•
Trends, deals, or companies you’ve followed.
•
Your major or academic background.
•
Student activities or bank-sponsored competitions you’ve been in.
•
Previous internship experience in the industry.
Sample “Good” Answer: “I would gladly take the opportunity to join any group at your firm if it
were offered to me, but Energy is my top choice because of my academic background and
previous work experience.
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My uncle used to own a few oil & gas interests, so I first became interested like that – and then
in university, I majored in industrial engineering, which is widely used in all sectors of oil & gas.
I’ve also done finance internships at Exxon-Mobil and Anadarko, and I want to leverage that
experience to advise companies in the industry on major deals.”
Note: No, you probably won’t have a ‘perfect’ answer as this candidate did. This one is just an
example to give you ideas for explaining your interest in an industry. You will probably have to
rely on deals you’ve followed or your personal interests to do the same.
10. Why do you want to work in Leveraged Finance rather than Debt Capital Markets, M&A,
or an industry group?
Leveraged Finance is “in between” Debt Capital Markets and M&A because you work on debt
issuances, but those issuances are mostly used to fund transactions, such as mergers,
acquisitions, and leveraged buyouts.
You should point to those qualities and say that you want to work on deals, but you want to do
more technical, debt-related analysis.
In a pure M&A group, you don’t necessarily spend much time on technical analysis; there’s a lot
of administrative work as well.
As with the “Why M&A?” question, avoid mentioning the exit opportunities.
Sample “Good” Answer: “I’d be interested in any of those groups if I’m fortunate enough to
win an offer at your firm, but Leveraged Finance is my top choice because I want to work on the
more technical and analytical aspects of deals, and I enjoy debt-related analysis.
While you also work on deals in M&A, you spend a lot of time on administrative tasks as well; in
DCM, you don’t work on deals quite as much since most companies there raise debt outside the
context of transactions.
Leveraged Finance gives me the chance to work on deals, but to focus on the technical aspects
of new debt issuances, such as modeling leveraged buyouts and assessing the credit stats and
ratios in different cases.”
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“Outside the Box” Questions & Answers
These questions are tricky because you can’t necessarily “prepare” for them. Examples of
“Outside the Box” questions include:
•
“If money were no object, would you be interviewing for this job right now?”
•
“If you were an animal, which one would you be?”
•
“What’s your favorite TV show?”
•
“What’s your personal ‘Beta’?”
Interviewers could throw many random questions at you, and all you can do is be aware of the
topics they might ask about.
Many of these questions are also forms of “the airport test” – If a banker gets stuck with you in
an airport for the day, could he/she get along with you and stay entertained? Or would he/she
want to jump off a cliff?
1. If you were a billionaire, would you be interviewing for this job right now?
The truth is that no one in their right mind would go into investment banking if they were
already wealthy – why work 80-100 hours per week doing grunt work if you’re worth $5 billion?
But you don’t want to admit this, exactly, because the interviewer will think, “OK, this person is
only motivated by money. Not good enough.”
Give a “middle of the road” answer where you admit that you probably wouldn’t stay in the
field for life if you were a billionaire, but that you are still interested in the work itself.
Sample “Good” Answer: “Honestly, if I were a billionaire, I wouldn’t stay in a field like
investment banking for my entire life because the sacrifices aren’t worth it if you’ve already
achieved that level of success.
However, I would still work in the field for a few years because I am very interested in the work
itself, I want the skill set, and deal analysis would be useful for managing my own money.
So, yes, I’d still be here interviewing for the job, but I have to admit that I would be less likely to
stay in the industry for the long term.”
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2. Tell me something interesting about you that is NOT listed on your resume.
One strategy here is to pick an experience from when you were a young child.
You probably have a lot of university-level experience (and beyond) on your resume, but you’re
less likely to include items from high school/secondary school, middle school, or elementary
school.
You can use almost anything, from travel to family to sports or activities. Just use common
sense and don’t say anything illegal or questionable (e.g., your former career as a porn star).
Sample “Good” Answer: “Sure. When I was in elementary school, I participated in a program
where we traveled around the U.S. and lived in all 50 states over the course of 5 years.
We spent a few months in each state and took classes there, played sports, did volunteer
activities, and met people from all over the country and the world.
Our teachers also changed as we moved to new areas.
That experience motivated me to study abroad later on and to complete so many internships – I
don’t think I’ve ever learned at a faster pace.”
3. What’s your favorite book, movie, or TV show?
Pick a good book, not a “great book.”
In other words, pick something that’s popular, decently well-written or well-produced, but not
something that’s a “literary classic.”
No one will believe you if you claim that War and Peace and The Canterbury Tales are your
favorite books.
On the other hand, you also don’t want to cite Twilight, 50 Shades of Grey, Harry Potter, etc.
You want to show that you have interests outside of work/business/finance, so avoid financerelated media (Wall Street, American Psycho, Billions, Liar’s Poker, etc.) if possible.
Sample “Good” Answer: “My favorite movie is Pulp Fiction, directed by Quentin Tarantino.
I love everything about it: The dialogue, the characters, the cinematography, the music, and the
unexpected endings to all the stories.
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I think it’s also a misunderstood movie because people tend to focus on the violence or certain
quotes, but they miss the theme of the movie: redemption.
Each separate story shows how even evil or morally gray characters can redeem themselves,
given the right circumstances and the desire to change.”
4. You have $1 million, but you are NOT allowed to invest it or use it to make more money.
How would you spend the money?
Answer this question by admitting that you’d spend some portion of this money on a high-end
vacation, nice car, or some other luxury good you’ve always wanted.
You’d spend the rest on something related to your hobbies and interests – ideally something
that benefits others as well.
Sample “Good” Answer: “First, I’d use a small portion of it on a vacation to the Galapagos
Islands, the Maldives, or Mauritius. I might also use a portion of the money on a nicer
apartment or home.
Then, I’d use the remaining amount to open a community gym in my area. I’ve practiced
weight-lifting for years, and I think all kids should learn about physical fitness and exercise from
an early age.
But where I grew up, they don’t have the chance to do that because it’s a rural area without
any nearby gyms.
I would try to make membership free to students in the area and cover maintenance and
operational expenses with corporate sponsorships.”
5. What’s the riskiest thing you’ve ever done?
Obviously, don’t say anything illegal or unethical (drugs, porn, gambling, cheating on exams,
etc.).
But you also have to cite something that is risky – i.e., not sitting next to the unpopular kid at
lunch, but something with consequences.
Talk about how it was a calculated risk and how you felt the upside outweighed the downside.
This one doesn’t necessarily need to be a “success story” – it could also be a “failure, but
learned something” example.
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Sample “Good” Answer: “The riskiest thing I’ve ever done was choosing to study abroad in
Japan in my second year of university. I lived with a host family, took classes, and completed a
summer internship there.
It was risky because I had no way to ‘escape’ if it didn’t go well, and a poor result might mean a
delayed graduation date due to scheduling problems.
Also, my internship experience might not be taken seriously, making it harder to get future
internships. But I felt the upside outweighed the downside.
Overall, it went well – studying the language and living with the host family were great, but my
internship was a bit too disorganized. But I never wanted to ‘escape,’ and there were no major
problems.”
6. What’s your personal “Beta”?
“Beta” in the Capital Asset Pricing Model (CAPM) measures a stock’s returns relative to the
returns of the market as a whole.
If the stock’s Beta is 1.0, the stock increases by 10% when the market increases by 10%.
If it’s 2.0, the stock falls by 20% when the market falls by 10% but rises by 20% when the market
rises by 10%.
You should say that your “Beta” is above 1.0, but not too much above it. You’re ambitious and
you try more things than the average person, which creates risk, but you’re not crazy.
Sample “Good” Answer: “My ‘personal Beta’ would be around 1.5. I do take more risks than
the average person so I can achieve more, but I’m not enough of a risk-taker to quit everything
and do something completely random, like starting an adventure tourism company in Africa.
I’m happy to accept the risk if an internship or job doesn’t go as planned, and I don’t like to
‘play it safe’ with those. But I’ve balanced that by working at larger, well-established
companies.”
7. Tell me a joke.
Avoid any jokes that involve politics, religion, sexism, racism, etc. In today’s culture, everyone
gets offended over everything.
You could try this corny, but impossible-to-offend joke if you can’t come up with anything else:
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“A dog goes into an investment banking job interview, and the banker says to him, ‘You've got
the job, but only if you can do 3 things. First, you have to complete an LBO model in 30 minutes.’
So, the dog runs to a computer and builds a full model in 30 minutes.
‘Next, you have to spread 10 comps manually in under an hour.’ Immediately, the dog sits down
at the computer and completes everything in only 30 minutes.
‘That's perfect! Lastly, you must be bilingual.’ So, then the dog says, ‘Meow!’”
8. In 30 years, your name turns up on the front page of a major newspaper.
What would the headline be, and what would the story be about?
With this type of question, you can show more “banker-like” traits such as work ethic and
analytical skills – but you shouldn’t take it too seriously.
So, your headline might be about starting a company, becoming a best-selling author, or
achieving something spectacular, such as curing a serious disease or funding a manned mission
to outer space.
You want to combine “ambition/drive” and “coolness/novelty” for this one.
Sample “Good” Answer: “The headline would probably be: ‘First Manned Mission to Jupiter
Returns Intact.’ And the story would be about how I funded a manned mission to go beyond the
asteroid belt in our solar system and study the gas giants.
I’ve always been interested in space exploration and the possibility of mining asteroids, moons,
and other planets, so if I do well over the next 15-20 years, I might fund this type of mission.
It takes several years to reach Jupiter at maximum rocket speeds, so this entire mission would
probably take at least a decade, if not longer.”
9. If you were an animal, which one would you be?
Don’t take this question too seriously; use it as a chance to show your personality and make a
light-hearted comment.
If you can tie in the qualities that bankers are looking for, that’s fine, but don’t try too hard.
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Sample “Good” Answer: “I love to swim, and I also like group activities, so I would probably be
a dolphin. Also, dolphins never really sleep – at least one side of their brain is awake at all times
– and that might be a useful skill for this job!”
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