How do Investment Banking Interviews work?

The interview discussion below is divided into two key components that are tested heavily in interviews – Technical assessment and Behavioral/fit assessment

Technical assessment

• Technical assessment will primarily focus on business valuation as it is a vital aspect of the job. It is strongly advisable to have a firm grip on the subject.
• A good place to start would include the equity curriculum of the CFA L2 program and topping that with online videos of Professor Aswath Damodaran of NYU Stern, who regularly uploads his latest teachings along with relevant resources and real-life case studies. These videos are available on YouTube for free and can help you build a solid foundation in equity valuation.
• Other areas of focus often include your understanding of the industry, the role of an Analyst/Associate, firms focus areas (PE syndication, Corporate M&A, capital raises etc.).
• It is also advisable to reach out to folks who have worked in the firm (current or former) that you are interviewing at to get a deeper understanding of firm-specific nuances and processes. It also helps you in getting familiar with the recruitment process and setting expectations about how the experience would be.
• The preliminary rounds (generally with Associates or VPs) focus more on the technical aspect of the interview and its weightage reduces as you advance further into the process and meet senior folks at the firm who tend to focus more on your aspiration, drive, presentation and fit in the firm.

Behavioral and fit assessment 

• Once you have gone past clearing the technical rounds, fit assessment becomes important. Finance roles involve working long hours and spending an inordinate amount of time at the office. It is, therefore, important that people find you likeable and easy to work with since deal teams are very lean and people work on multiple projects at the same time.
• The firms are looking to find hard-working candidates, who can put in long hours, are team players and, more importantly, can handle a stressful environment. They want to meet candidates who are exceptionally driven and are self-starters.
• The interviewers try to establish all of this by getting to know your background, previous work experiences, your long term goals and career aspirations. It is, therefore, crucial that you think about which aspects of your story best match these objectives to make a strong case for your candidature.
• These interviews may sometimes involve brain teasers, case studies and building mental models to assess your sharpness and ability to think on your feet.
• Knowing about the deals that have happened in the recent past is a good idea as it shows your interest in the industry.