Introduction
Case studies and technical interviews are a key part of the investment banking interview process. Case studies are used to assess your analytical and problem-solving skills, while technical interviews are used to assess your knowledge of investment banking principles and practices.
To prepare for case studies and technical interviews, you should:
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Understand the different types of case studies and technical questions that you may be asked. There are a variety of different case studies and technical questions that you could be asked in an investment banking interview. Some common case studies include DCF modelling, LBO modelling, and train teasers.
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Practice answering case studies and technical questions. The best way to prepare for case studies and technical interviews is to practice answering case studies and technical questions. You can find practice questions online and in investment banking interview preparation books.
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Get feedback from others. Once you have practiced answering case studies and technical questions, it is a good idea to get feedback from others. This will help you to identify areas where you need to improve.
Here are some specific examples of how to prepare for case studies and technical interviews:
DCF Modelling
DCF modelling is a common type of case study in investment banking interviews. DCF modelling is used to value companies and projects. To prepare for a DCF modelling case study, you should:
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Understand the basics of DCF modelling. DCF modelling is based on the principle that the value of a company or project is equal to the present value of its future cash flows.
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Be able to build and use a DCF model. There are a variety of different DCF models that you can use. However, most DCF models follow the same basic structure.
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Be able to explain the assumptions that are used in a DCF model. DCF models are based on a number of assumptions. It is important to be able to explain these assumptions and how they can impact the value of a company or project.
LBO Modelling
LBO modelling is another common type of case study in investment banking interviews. LBO modelling is used to structure and finance leveraged buyouts. To prepare for an LBO modelling case study, you should:
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Understand the basics of LBO modelling. LBO modelling is based on the principle of using debt to finance the acquisition of a company.
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Be able to build and use an LBO model. There are a variety of different LBO models that you can use. However, most LBO models follow the same basic structure.
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Be able to explain the assumptions that are used in an LBO model. LBO models are based on a number of assumptions. It is important to be able to explain these assumptions and how they can impact the feasibility of an LBO.
Train Teasers
Train teasers are a type of technical question that is often asked in investment banking interviews. Train teasers are designed to test your problem-solving skills and your ability to think critically. To prepare for train teasers, you should:
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Practice answering train teasers. There are many different train teasers available online and in investment banking interview preparation books.
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Be able to explain your thought process. When answering a train teaser, it is important to be able to explain your thought process to the interviewer. This will help them to understand how you problem solve and think critically.
Conclusion
By following these tips, you can increase your chances of success in investment banking case studies and technical interviews. To find out other helpful tips that Circle Square can provide to help you land your dream IB, PE, VC and Corporate Development role please contact us on 020749 20700.
