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.
Most referenced in Technicals
| Guide | Cited by |
|---|---|
| Walk Me Through a DCF | 53 guides |
| Enterprise Value vs Equity Value Explained | 38 guides |
| How the Three Financial Statements Link Together | 34 guides |
| Comparable Company Analysis: Trading Comps Guide | 30 guides |
| Walk Me Through an LBO | 27 guides |
54 guides
Valuation Multiples Practice Questions
Ten valuation multiples practice questions with model answers, a worked comps table example, and three local reps on why similar companies trade differently.
Sep 19, 2026 · 7 min readTechnicalsRestructuring Interview Questions and Answers
Ten restructuring interview questions with model answers, a worked recovery-waterfall example, and three local reps on Chapter 11 mechanics and DIP financing.
Sep 18, 2026 · 7 min readTechnicalsInvestment Banking Mental Math Practice Test
Ten mental math practice questions for banking interviews and numerical reasoning tests, a worked percentage-bridge example, and three timed local reps.
Sep 17, 2026 · 7 min readTechnicalsThree-Statement Interview Questions Practice
Ten three-statement interview practice questions with model answers, a worked depreciation walkthrough, and three local reps on how a single line item flows.
Sep 16, 2026 · 7 min readTechnicalsEnterprise Value Bridge Practice Questions
Ten enterprise value bridge practice questions with answer keys, a worked net debt example, and three local reps on the EV-to-equity value walk.
Sep 15, 2026 · 7 min readTechnicalsAccretion/Dilution Practice Questions and Answers
Ten accretion/dilution practice questions with model answers, a worked all-stock deal example, and three local reps on the breakeven synergy math.
Sep 14, 2026 · 8 min readTechnicalsPaper LBO Practice Questions (Worked + 3 Reps)
Ten paper LBO practice questions with answer keys, a worked five-step example, and three timed local reps to test your sources-and-uses and returns math.
Sep 13, 2026 · 7 min readTechnicalsInvestment Banking Modelling Test: Format and Practice
Investment banking modelling test format across firms: task types, review discipline, and ten valuation and LBO questions spanning six banks.
Sep 13, 2026 · 7 min readTechnicalsWorking Capital vs Cash Flow: The Difference
Working capital vs cash flow: one is a balance-sheet snapshot with non-cash items, the other tracks actual cash movement. Learn the link plus the interview answer.
Sep 11, 2026 · 7 min readTechnicalsHow to Forecast Working Capital: DSO, DIO, DPO
How to forecast working capital with DSO, DIO, and DPO: the driver per line, the three formulas, a worked schedule, and the mistakes that break DCFs.
Sep 11, 2026 · 7 min readTechnicalsPaper LBO Practice: Worked Example and Three Reps
Solve a paper LBO from entry price to debt paydown, exit equity, MOIC and IRR. Check a worked example, then practise three local calculations.
Sep 5, 2026 · 6 min readTechnicalsWhat a Restructuring Adviser Does on a Deal
The restructuring adviser mandate step by step: diagnose liquidity, value the business, model recoveries, negotiate with creditor classes, and pick an executable path.
Sep 2, 2026 · 9 min readTechnicalsOut-of-Court vs Chapter 11 and DIP Financing
When a company restructures outside court, when it needs Chapter 11, and how debtor-in-possession financing works. Includes a worked 13-week DIP sizing example.
Sep 2, 2026 · 10 min readTechnicalsLiquidity vs Solvency: Signs of Distress
Liquidity is whether you can pay on time. Solvency is whether value covers obligations. Learn the difference, the early warning signals, and a worked coverage example.
Sep 2, 2026 · 9 min readTechnicalsFulcrum Security and the Priority Waterfall
How claims rank in a restructuring, how to build a recovery waterfall, and how to find the fulcrum security that becomes the reorganized equity.
Sep 2, 2026 · 10 min readTechnicalsExchange Offers, Amend-and-Extend, 363 Sales
The three workhorse restructuring transactions: distressed exchange offers, amend-and-extend deals, and court-supervised Section 363 sales, with worked numbers.
Sep 2, 2026 · 12 min readTechnicalsDistressed Valuation and Recovery Analysis
How valuation changes for a distressed company: normalizing EBITDA, a scenario DCF, liquidation value by asset class, and bridging enterprise value into recoveries.
Sep 2, 2026 · 11 min readTechnicalsM&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 · 9 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 · 8 min readTechnicalsLBO Sources and Uses: Build One Now
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 · 8 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 · 7 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 · 11 min readTechnicalsOperating Working Capital vs Working Capital
Is cash part of working capital? Operating vs standard working capital: formulas, cash treatment, and the version DCF and M&A models use.
Jul 2, 2026 · 11 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 · 11 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 · 11 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 · 7 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 · 7 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 · 8 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 · 12 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 · 7 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 · 7 min readTechnicalsEV to Equity Value Bridge: Components and Example
Enterprise value bridge explained component by component, including debt, cash, preferred stock, minority interest, pensions, and a worked example.
Jul 2, 2026 · 8 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 · 7 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 · 7 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 · 11 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 · 11 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 · 11 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 · 11 min readTechnicalsTerminal Value in a DCF: Formula and Methods
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 · 10 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 · 9 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 · 10 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 · 9 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 · 10 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 · 11 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 · 9 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 · 9 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 · 9 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 · 9 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 · 11 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 · 9 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 · 9 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 · 10 min readTechnicalsCash Flow Sweep in an LBO: How a Cash Sweep Works
A cash flow 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 · 10 min readFrequently asked questions
Where should I start with Technicals?
Start with the most-referenced guides in the table above. Other guides cite them most, which makes them the load-bearing pages of this hub. Then follow the related links at the end of each article into the next question.
How do these guides connect to practice?
Guides matched to a drill carry it inside the article: quick local reps or one AI-graded answer before signup. The rest link the exact practice surface at the end, so you never need a second tab to start.
How current is this hub?
Every guide carries its publish date, and substantive updates add a second updated date. Hiring processes change by cycle, so check the dated employer sources at the foot of firm guides before treating a format detail as current.