Investment Banking Interview Prep (2026 Guide)

Breaking into investment banking is brutal. The interview process rewards obsessive preparation, and most candidates underestimate what "prepared" actually means.

Investment Banking Interview Process

Investment banking interviews follow a structured, multi-stage process. The specifics vary by firm, but the overall arc is predictable.

What Interviewers Are Looking For

Investment banking interviews assess three things: technical competence, cultural fit, and genuine motivation.

The weighting shifts by firm and interviewer, but all three matter.

The Unwritten Rules

• Presentation matters. Banking remains formal. Suit and tie for Superdays, business professional for virtual. This isn't tech.
• Genuine interest signals commitment. Reference specific deals the firm worked on. Discuss what's happening in the M&A market. Show you understand that this job means 80-hour weeks for years, and you actually want that.
• Technical accuracy is table stakes. One botched accounting question can tank your candidacy. A VP once told me: "If someone can't walk me through the statements, the interview is over in my head even if we keep talking."
• Fit trumps technicals at the margin. Bankers work brutal hours together. They hire people they want in the room at 2am on a Saturday. Be someone they'd want to grab a beer with.
• Humility beats arrogance. If you don't know an answer, say so. Then walk through how you'd think about it. Bluffing is obvious and fatal.

Technical Skills

Technical questions test two things: foundational knowledge (accounting, finance, valuation) and applied intuition (how you'd actually use this stuff on a deal).

Interviewers can tell immediately who memorized answers versus who actually understands the material.

Accounting & Financial Statements

This is the foundation. If you can't explain how the three statements connect, nothing else matters.

Key Concepts

• The three financial statements: income statement, balance sheet, cash flow statement
• How they link: net income flows to retained earnings and starts the cash flow statement
• Impact of changes: how depreciation, working capital shifts, and debt transactions ripple through all three
• Accrual vs. cash accounting: why timing of revenue recognition matters

Example Questions

• "Walk me through the three financial statements."
• "How does $10 of depreciation affect all three statements?" (This one comes up constantly)
• "A company buys $100 of inventory on credit. Walk me through the impact."
• "Why is the cash flow statement the most important?"

Valuation

You need to understand the three primary methodologies and when each applies: Discounted Cash Flow (DCF), Comparable Company Analysis (Trading Comps), and Precedent Transactions.

Key Concepts

• DCF: projecting free cash flows, calculating terminal value (Gordon Growth vs. Exit Multiple), determining WACC
• Trading Comps: selecting comparable companies, calculating and applying multiples (EV/EBITDA, P/E, EV/Revenue)
• Precedent Transactions: control premiums, why transaction multiples typically exceed trading multiples
• Enterprise Value vs. Equity Value: the bridge between them, when to use each, what goes into each

Example Questions

• "Walk me through a DCF." (The single most common technical question—know this cold)
• "What's the difference between Enterprise Value and Equity Value?"
• "Which valuation methodology typically gives the highest value?"
• "When would you not use a DCF?"
• "A company issues $50 million in debt to buy back stock. What happens to Equity Value? Enterprise Value?"

Mergers & Acquisitions

M&A advisory is a core IB function. You need to understand merger mechanics, accretion/dilution analysis, and the strategic logic behind deals.

Key Concepts

• Accretion/dilution: how to determine if a deal increases or decreases the acquirer's EPS
• Deal structure: cash vs. stock vs. debt financing, and how each affects the math
• Synergies: cost synergies vs. revenue synergies, why cost synergies are more credible (revenue synergies are basically never taken seriously)
• Strategic rationale: horizontal vs. vertical integration, geographic expansion, acquiring capabilities vs. market share

Example Questions

• "Walk me through a basic merger model."
• "Company A has a P/E of 15x and acquires Company B at a P/E of 10x in an all-stock deal. Is this accretive or dilutive?"
• "Why might a company prefer to pay with stock instead of cash?"
• "What makes a good acquisition target?"

Leveraged Buyouts (LBO)

LBO questions show up more frequently at firms with strong financial sponsor coverage. Even if you're not targeting those groups, know the basics.

Key Concepts

• LBO mechanics: how debt amplifies equity returns (and risk)
• Return drivers: debt paydown, EBITDA growth, multiple expansion
• IRR and MOIC: how PE firms measure success
• Good LBO candidates: stable cash flows, low capex requirements, asset-heavy balance sheets for collateral

Example Questions

• "Walk me through an LBO model."
• "What makes a good LBO candidate?"
• "How does using leverage increase returns?"
• "What variables have the biggest impact on LBO returns?"

How You're Evaluated

Interviewers aren't just checking if you know definitions. They're assessing:

Behavioral Interviews

Here's what most candidates get wrong: they assume technical mastery wins offers. It doesn't—at least not alone. Banks hire people they want to work alongside during 100-hour weeks.

When technical skills are comparable (and among Superday candidates, they usually are), behavioral performance determines who gets the offer.

What to Expect

Behavioral rounds run 30-45 minutes and cover predictable ground:

The STAR Method

STAR gives you a reliable structure for behavioral answers: Situation, Task, Action, Result.

Pro tip: Keep answers under two minutes. It's much easier to expand on follow-ups than to recover from rambling. Practice with a timer.

Build a Story Bank

The best prep tool is a bank of 4-6 versatile STAR stories you can adapt to different questions. Each story should clearly demonstrate one of these:

Pro tip: One strong story can answer multiple question types depending on framing. Practice pivoting the same story to emphasize leadership, teamwork, or problem-solving depending on what's asked.

The "Why" Questions

Two questions appear in virtually every IB interview. Both require specific, genuine answers.

Why Investment Banking?

Your answer needs to show you understand what IB actually involves, connect to something real in your background, and demonstrate genuine commitment. Avoid generic garbage like "I want to learn a lot" or "It's a great launchpad."

Strong framework: Personal catalyst (what sparked your interest) → Validation (experiences that confirmed it) → Why IB specifically (not PE, not consulting, not corp dev—IB).

Why This Firm?

Reference specific things: recent deals they advised on, the strength of particular industry groups, culture points that came up in conversations with current bankers. Generic answers that could apply to any bank signal you haven't done your homework.

Common Behavioral Pitfalls

• Weak storytelling. Rambling answers without structure. Use STAR and practice out loud until it's natural.
• Generic "Why IB" answers. "I want to work on important transactions" applies to literally everyone. Make it personal or it's worthless.
• Negative framing. Don't badmouth previous employers, even subtly. Even if they deserve it.
• Over-rehearsed delivery. Sound like a human having a conversation, not a robot reciting a script. Know your stories well enough to vary the phrasing.
• No questions prepared. "I don't have any questions" tells the interviewer you don't care. Prepare thoughtful questions for every single interviewer.

The Superday

The Superday is the final round—a full day of back-to-back interviews at the firm's office.

If you've made it here, you're in the top tier. But Superdays are designed to be exhausting, and plenty of strong candidates still walk away without offers.

What to Expect

• Format: 5-10 interviews, each 30-45 minutes, back-to-back with short breaks
• Interviewers: Analysts, associates, VPs, and sometimes MDs. Junior bankers often ask the hardest technical questions because they want to see if you can do the work they'll assign you.
• Question types: Technical, behavioral, deal discussions, market questions, and at some firms, mini case studies
• Timeline: Most candidates hear back within 24 hours to 2 weeks. Some firms call with offers that same evening.
• Conversion rate: Roughly 35-50% of Superday candidates get offers, depending on the firm and year.

Superday Strategy

1. Maintain energy throughout. The last interviewer should see the same sharp candidate the first one did. Fatigue is visible and it hurts you.
2. Don't dwell on mistakes. If you bomb one interview, mentally reset. Each interviewer forms an independent opinion. One bad conversation doesn't necessarily sink you.
3. Find connection points. Personal rapport matters more than people admit. Look for common ground—same school, shared hobbies, similar career paths.
4. Have fresh questions. Prepare 8-10 questions so you're not repeating yourself across interviews. Asking the same question to everyone looks lazy.
5. Send thank-you notes. Same-day emails to each interviewer. Keep them brief, personalized, and error-free.

Interview Prep Plan

How much time you need depends on your starting point. Here's a realistic framework:

If You Have 2+ Months

• Master accounting fundamentals (3-statement linkages, transaction flow-throughs)
• Work through a full DCF model in Excel—actually build one, don't just read about it
• Build your story bank (4-6 STAR stories covering different competencies)
• Study Enterprise Value / Equity Value concepts until they're automatic
• Learn merger model mechanics and accretion/dilution math
• Understand LBO basics if you're targeting groups with heavy PE coverage
• Research target firms deeply and prepare specific "Why this firm?" answers
• Do 3-5 mock interviews with peers or coaches

If You Have 2-4 Weeks

• Prioritize accounting—it's the most common technical topic and the easiest place to look unprepared
• Know how to walk through a DCF conceptually (even if your Excel skills are rough)
• Prepare 3-4 strong STAR stories that you can adapt to different questions
• Research the specific firms you're interviewing with
• Practice "Walk me through your resume" until it flows naturally
• Do at least 2 mock interviews

If You Have Days

• Focus on behavioral. This is where underprepared candidates crash fastest.
• Review the most common technical questions and make sure you can answer them
• Know 3-statement linkages cold—this is the minimum viable technical knowledge
• Prepare 2-3 thoughtful questions to ask interviewers
• Sleep. Seriously. A well-rested candidate with okay prep beats an exhausted candidate with great prep.

Quick Reference: Key Frameworks