What do you do if you want to ace a technical interview in investment banking?

Technical interviews are a crucial part of the hiring process for investment banking roles. They test your knowledge of finance, accounting, valuation, and deal analysis, as well as your ability to think on your feet and communicate clearly. If you want to ace a technical interview in investment banking, here are some tips to help you prepare and perform.

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1 Review the basics

Before you dive into the advanced topics, make sure you have a solid grasp of the fundamental concepts and skills that underpin investment banking. These include financial statement analysis, ratio analysis, financial modeling, discounted cash flow (DCF) valuation, comparable company analysis (CCA), and merger and acquisition (M&A) analysis. You should be able to explain how these methods work, how they are used in practice, and how they relate to each other. You should also be familiar with the common terms and jargon used in the industry, such as EBITDA, WACC, LBO, and synergies.

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Sarah Cardwell LLB TEFL/TESOL

Coaching ambitious banking professionals to enhance their job performance, boost earning potential & secure future career opportunities by optimising their communication & pronunciation skills - DM me to find out more!
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Always be aware of any banking/industry jargon that may be used. A quick GPT search will find out the terms that you may need to know.

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2 Practice with mock questions

One of the best ways to prepare for a technical interview is to practice with mock questions that simulate the real scenarios and challenges you might face. You can find many online resources that offer sample questions and answers, or you can ask a friend or mentor who has experience in investment banking to quiz you. The key is to practice answering questions out loud, using clear and concise language, and showing your calculations and assumptions. You should also be ready to explain your reasoning and justify your choices, as well as handle follow-up questions and feedback.

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Sarah Cardwell LLB TEFL/TESOL

Coaching ambitious banking professionals to enhance their job performance, boost earning potential & secure future career opportunities by optimising their communication & pronunciation skills - DM me to find out more!
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Practicing with mock questions is a great way to prepare. If you're a second language speaker I would approach this in 3 steps. 1. Find a question and write out your answer in your native language 2. Figure out how it should be said in English. The third step is to practice with a friend, mentor, colleague or co-worker.

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3 Brush up on current events

Technical interviews are not only about your theoretical knowledge, but also about your awareness of the market and industry trends. You should be able to discuss the latest news and developments that affect the investment banking sector, such as major deals, regulatory changes, economic indicators, and competitive dynamics. You should also have an opinion on the valuation and prospects of some of the leading companies and sectors that interest you or the interviewer. You can use reliable sources such as financial publications, podcasts, newsletters, and blogs to stay updated and informed.

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4 Research the firm and role

Another way to impress the interviewer is to show that you have done your homework on the specific firm and role you are applying for. You should know the firm's history, culture, values, strengths, and goals, as well as the role's responsibilities, expectations, and challenges. You should also be able to explain why you are interested in working for the firm and how you can add value to its business and clients. You can use the firm's website, social media, annual reports, press releases, and testimonials to gather relevant information and insights.

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5 Be confident and professional

Finally, you should approach the technical interview with confidence and professionalism. You should dress appropriately, arrive on time, greet the interviewer politely, and thank them for their time. You should also maintain eye contact, speak clearly, listen attentively, and avoid filler words and slang. You should also be honest, humble, and respectful, and avoid making excuses or blaming others for your mistakes. You should also show enthusiasm, curiosity, and passion for investment banking, and ask relevant and thoughtful questions at the end of the interview.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Sarah Cardwell LLB TEFL/TESOL

Coaching ambitious banking professionals to enhance their job performance, boost earning potential & secure future career opportunities by optimising their communication & pronunciation skills - DM me to find out more!
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A good way to do well in job interviews is have a couple of case studies/previous scenarios to hand and write down points that could help you should you need to recall them in the interview. Try to predict what the interviewer might ask you and be prepared with your own examples.

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Jorge Vinuesa

Graduado en Administración y dirección de empresas. MiFID II.
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Aparte de ser proactivo y tener un track record (mejor auditado) de un broker fiable, creo que uno de las cualidades esenciales es el dominio del inglés, tanto escrito como hablando. La gran cantidad de información que debe ser procesada en este idioma hace indispensable mínimo un B2/C1, y conocer vocabulario específico financiero.

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What do you do if you want to ace a technical interview in investment banking?

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1 Review the basics

2 Practice with mock questions

3 Brush up on current events

4 Research the firm and role

5 Be confident and professional

6 Here’s what else to consider

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