Getting hired by top investment banks like Goldman Sachs requires going through multiple demanding interview rounds. Candidates need to demonstrate excellent financial modeling capabilities, business valuation skills, market awareness and quick analytical thinking. This article summarizes some of the most common technical and fit interview questions asked, to help candidates better prepare.
Valuation methods and analysis questions test core banking skills
Investment bankers need to build complex financial models to value companies and transactions. Typical technical questions will assess the candidate’s understanding of valuation methodologies like DCF, LBO models and M&A analysis. For example – walk through a DCF model and calculate the WACC, discuss the impact of raising debt on a company’s valuation.
Market-related questions evaluate up-to-date awareness
It’s crucial for bankers to closely track markets and industry trends. Interviewers may ask questions like – what are you views on market volatility and what’s driving it, which sectors seem overvalued currently, how would you value a company that recently lost market share.
Brain teasers evaluate creative problem-solving
Apart from technical knowledge, bankers need to demonstrate analytical thinking and creativity. Brain teaser type questions, though abstract, aim to test a candidate’s structured approach to solving open-ended problems.
Behavioral questions assess cultural fit
In addition to technical capabilities, investment banksevaluate candidates’ motivation, work ethic, communication abilities and teamwork through behavioral interview questions.
Getting hired by top investment banks requires demonstrating exceptional financial modeling skills, up-to-date market awareness, problem-solving abilities and fit with the bank’s culture. Preparing for technical questions on valuation and markets as well as honing creative problem-solving will help secure offers.