Category
Technicals
Investment banking technical interview guides: DCF, valuation, accounting, LBO, and M&A questions with worked answers, so you nail the hardest interview round.
The technical round is where prepared candidates separate themselves. These guides work through the core of what gets tested (the three financial statements, valuation and the DCF, LBO mechanics, and M&A and accretion/dilution) with the actual math worked out, not just the formulas stated. Each one is built around the follow-up questions interviewers use to see whether you truly understand a concept or only memorized the headline, so you can defend your answer when they push.
38 guides
M&A Flow of Funds: Statement and Example
Learn how an M&A flow of funds statement turns the purchase-price bridge into closing wires, with a worked example, checklist, and common errors.
Aug 2, 2026 · 7 min readTechnicalsDebt-Like Items in M&A: Examples and Equity Bridge
Debt-like items in M&A explained with examples, the enterprise-to-equity bridge, working-capital tests, and a worked purchase-price calculation.
Aug 2, 2026 · 6 min readTechnicalsLBO Sources and Uses: Table, Formula, and Example
Build an LBO sources and uses table with the formula, line items, purchase-price bridge, rollover treatment, and an interactive worked example.
Jul 16, 2026 · 7 min readTechnicalsCash vs Stock Acquisition: Example and EPS Impact
Compare cash, debt, and stock acquisition financing with a worked EPS example, earnings-yield math, leverage, dilution, and seller trade-offs.
Jul 16, 2026 · 5 min readTechnicalsCost Synergies in M&A: Examples and Calculation
Learn how to identify and calculate M&A cost synergies, including run-rate savings, phase-in, taxes, cost-to-achieve, NPV, and downside cases.
Jul 16, 2026 · 9 min readTechnicalsOperating Working Capital vs Working Capital
Operating working capital vs working capital explained: formulas, cash treatment, accrued expenses, and the version used in DCF and M&A models.
Jul 2, 2026 · 7 min readTechnicalsStrategic Rationale in M&A: Meaning and Examples
Strategic rationale in M&A explained with the why this buyer, why this target, why now test, build-vs-buy logic, examples, risks, and interview guidance.
Jul 2, 2026 · 7 min readTechnicalsSynergies in M&A: Types, Examples, and Calculation
Learn the types of M&A synergies, revenue and cost examples, run-rate calculations, phase-in, realization costs, and dis-synergy risks.
Jul 2, 2026 · 8 min readTechnicalsLBO Capital Structure: Debt Tranches Explained
LBO capital structure explained for IB interviews: senior debt, subordinated debt, equity check, leverage levels, and a worked returns example.
Jul 2, 2026 · 5 min readTechnicalsIncome Statement, Balance Sheet, and Cash Flow Explained
Income statement, balance sheet, and cash flow statement basics for IB interviews, with line items, timing differences, and a worked example.
Jul 2, 2026 · 5 min readTechnicalsHow to Walk Me Through the Financial Statements
How to walk me through the financial statements in IB interviews with a 90-second answer, linkage formula, balance check, and worked example.
Jul 2, 2026 · 6 min readTechnicalsHow to Forecast Cash Flows in a DCF
How to forecast cash flows in a DCF: project revenue growth, hold margins, build capex and working capital, then compute unlevered FCF with a worked example.
Jul 2, 2026 · 10 min readTechnicalsHow to Build a Merger Model: Pro Forma Combination
How to build a merger model by combining buyer and target financials, purchase accounting, synergies, financing effects, and pro forma EPS math.
Jul 2, 2026 · 5 min readTechnicalsFootball Field: Presenting a Valuation Range
Football field valuation explained for IB interviews: comps, precedents, DCF ranges, implied share price, range synthesis, and a worked example.
Jul 2, 2026 · 5 min readTechnicalsEnterprise Value Bridge: Component by Component
Enterprise value bridge explained component by component, including debt, cash, preferred stock, minority interest, pensions, and a worked example.
Jul 2, 2026 · 5 min readTechnicalsDiluted Share Count: Options, Warrants, Treasury Method
Diluted share count explained for IB interviews with options, warrants, convertibles, treasury stock method formula, and a full worked example.
Jul 2, 2026 · 5 min readTechnicalsDCF Sensitivity Analysis: Flexing WACC and Growth
DCF sensitivity analysis explained for IB interviews: flex WACC, terminal growth, exit multiple, and read a valuation range from a data table.
Jul 2, 2026 · 5 min readTechnicalsComparable Company Selection: How to Pick a Peer Set
Comparable company selection screens peers by industry, size, growth, and margins. Get the five criteria, the process, and a worked peer-set example.
Jul 2, 2026 · 8 min readTechnicalsWalk Me Through a DCF
Walk me through a DCF is the most common IB interview question. Here's the clean five-step answer interviewers want, with formulas and follow-ups.
Jun 22, 2026 · 8 min readTechnicalsWalk Me Through an LBO
Walk me through an LBO is a core IB and PE interview question. Here's the clean step-by-step answer, the three returns drivers, and the follow-ups.
Jun 21, 2026 · 8 min readTechnicalsHow the Three Financial Statements Link Together
The three financial statements link through net income, ending cash, and depreciation. Here's how they connect, plus the classic depreciation question.
Jun 20, 2026 · 9 min readTechnicalsTerminal Value Explained
Terminal value captures all DCF cash flows beyond the forecast. The two methods, the formulas, how to cross-check them, and the interview traps to avoid.
Jun 16, 2026 · 7 min readTechnicalsUnlevered vs Levered Free Cash Flow
Unlevered free cash flow is cash to all investors before debt; levered FCF is what's left for equity. The formulas, the difference, and why DCFs use UFCF.
Jun 15, 2026 · 7 min readTechnicalsWACC Explained: Formula, Inputs & Interview Use
WACC is the discount rate in every DCF. Get the WACC formula, how to estimate cost of equity via CAPM and cost of debt, plus interview follow-ups.
Jun 14, 2026 · 7 min readTechnicalsEnterprise Value vs Equity Value Explained
Enterprise value vs equity value is a top IB interview question. Get the bridge formula, which multiples pair with each, and the why-X-moves-EV follow-ups.
Jun 13, 2026 · 6 min readTechnicalsPaper LBO: How to Solve One in an Interview
How to solve a paper LBO in 5 to 10 minutes with no Excel: assumptions, sources and uses, projections, exit, and the IRR and MOIC mental math shortcuts.
Jun 12, 2026 · 8 min readTechnicalsDCF Interview Questions and Answers
The DCF interview questions bankers actually ask, from why unlevered FCF to terminal value methods and sensitivities, each with a tight model answer.
Jun 9, 2026 · 8 min readTechnicalsAccretion Dilution Analysis: The EPS Test in M&A
Accretion dilution analysis measures whether an acquisition raises or lowers the buyer's EPS. Get the P/E rule, financing test, and a worked example.
Jun 6, 2026 · 8 min readTechnicalsHow to Calculate EBITDA: Two Formulas & Examples
How to calculate EBITDA two ways, from net income up and from EBIT plus D&A, why bankers use it, its limitations, adjusted EBITDA, and EBITDA vs cash flow.
Jun 5, 2026 · 8 min readTechnicalsMOIC vs IRR: Definitions, Formulas & PE Use
MOIC measures how many times you multiplied your money; IRR annualizes it for time. Get both formulas, a worked LBO example, and the MOIC-to-IRR shortcut.
Jun 4, 2026 · 7 min readTechnicalsNOPAT Explained: Formula, FCF & ROIC Use
NOPAT is operating profit after tax with no leverage: EBIT times (1 minus the tax rate). Get the formula, a worked example, and how it feeds FCF and ROIC.
Jun 3, 2026 · 7 min readTechnicalsCost of Equity and Cost of Debt Explained
Cost of equity comes from CAPM, cost of debt from the after-tax yield on borrowing. See both formulas, a worked example, and how they feed WACC.
Jun 2, 2026 · 8 min readTechnicalsGoodwill and Purchase Accounting in M&A
Goodwill is the premium paid above the fair value of net identifiable assets. See how it's created, the purchase accounting steps, and impairment under US GAAP.
Jun 1, 2026 · 7 min readTechnicalsComparable Company Analysis: Trading Comps Guide
Comparable company analysis values a target off peer multiples. Get the trading comps steps, EV/EBITDA vs P/E, and how comps stack up against a DCF.
May 31, 2026 · 7 min readTechnicalsEV/EBITDA & Valuation Multiples Explained
EV/EBITDA is the most-used valuation multiple in IB. Get the formula, why EV pairs with EBITDA, equity vs enterprise multiples, and typical ranges by context.
May 30, 2026 · 7 min readTechnicalsPrecedent Transactions Analysis: Steps & Use
Precedent transactions analysis values a company off past M&A deals. Get the steps, the multiples, the control premium, and how it differs from comps.
May 29, 2026 · 7 min readTechnicalsCoverage Ratio vs Leverage Ratio Explained
Coverage ratio vs leverage ratio: leverage sizes the debt (Debt/EBITDA), coverage tests if cash flow services it. Formulas, thresholds, and the interview angle.
May 28, 2026 · 7 min readTechnicalsCash Sweep in an LBO: How It Deleverages Debt
A cash sweep applies excess free cash flow to prepay LBO debt early. See how it accelerates deleveraging, lifts equity returns, and gets modeled.
May 3, 2026 · 7 min read