How to Discuss a Deal in an IB Interview

To discuss a deal in an investment banking interview, pick one recent M&A or leveraged buyout announced in the last six to twelve months, then walk through it in four parts: background (buyer and seller revenue, EBITDA, industry), rationale (why the deal makes strategic sense), the valuation metrics (premium, multiple, or credit terms), and your opinion on whether it creates value and what risks it carries. According to Mergers & Inquisitions, open with a roughly 100-word version, then expand as the interviewer asks follow-ups. This question tests genuine market interest, not memorized facts, and it shows up in nearly every IB interview once you're past the first screen.

TL;DR

• Use a 4-part structure: background, rationale, valuation metrics, your opinion, per Mergers & Inquisitions.
• Start with a roughly 100-word answer, then expand only if the interviewer asks a follow-up.
• Pick one M&A or LBO deal announced in the past 6 to 12 months, ideally U.S.-based and in a generalist sector.
• Prepare a short answer on a deal the specific bank worked on, and a longer, deeper answer on one deal you followed independently.
• One well-researched deal beats three shallow ones; interviewers probe depth, not breadth.

What is the interviewer actually testing?

When an interviewer asks you to discuss a deal, they're testing whether you follow markets for real or just crammed the night before. Per Mergers & Inquisitions, this question differentiates candidates by measuring authentic commitment to the industry, which matters most for career-changers and MBA-level candidates who don't yet have deal experience on their resume to fall back on.

The question also checks analytical thinking. Anyone can repeat the two sentences from a press release. Few candidates can explain why the buyer paid the premium it paid, whether the synergies are believable, and what could make the deal fail. That gap between reciting facts and reasoning through them is exactly what separates a strong answer from a weak one, and it's why interviewers keep asking this question even though it has no single correct answer.

How do you choose which deal to discuss?

Choose one recent M&A or leveraged buyout, not a capital markets deal like an IPO or debt issuance, because M&A and LBOs are the easiest to research in depth from public sources. Mergers & Inquisitions recommends a deal announced within the past six months, twelve months at the outside, in a generalist industry such as consumer, healthcare, technology, or industrials, and based in the U.S. where disclosure and press coverage are strongest.

You only need one deal. Trying to hold three or four in your head invites you to blur details under pressure, and a single well-researched deal you can defend through follow-ups beats several you know only at the surface. The table below summarizes the selection filters.

Filter	What to pick	Why
Deal type	M&A or LBO	Most public information available
Timing	Announced in the last 6 to 12 months	Recent enough to show current interest
Industry	Generalist sector (consumer, healthcare, tech, industrials)	Matches most interview groups
Geography	U.S.-based	Easiest to research via press and filings
Quantity	One deal	Depth beats breadth under follow-up questions

It also helps to pick a deal the bank you're interviewing with was not directly involved in. If the interviewer worked the deal, they'll know details you can't match. A deal you sourced and researched independently plays to your strength: genuine outside interest.

What is the 4-part structure for the answer?

Structure the answer as background, rationale, valuation metrics, and your opinion, in that order, so the interviewer gets the full shape before you go deep on any one piece. Mergers & Inquisitions frames this as the core framework for the question, and it holds for M&A and LBO deals alike.

Background. State who bought whom, when it was announced, and the approximate size: revenue and EBITDA for both the buyer and the seller, plus the industry and geography. This grounds the interviewer before you make any claims about the deal's logic.

Rationale. Explain why the deal makes sense strategically: market share, product line extension, geographic expansion, cost synergies, or a financial buyer's return thesis if it's an LBO. This is where you show you understand what's actually driving dealmaking in that sector right now.

Valuation metrics. Cite the premium paid over the pre-announcement share price, the EV/EBITDA or EV/Revenue multiple, or, for an LBO, the entry multiple and rough leverage. Weaving in one or two real numbers here immediately separates your answer from a candidate who only discusses qualitative rationale. If you want to sharpen your multiple intuition before the interview, our EV/EBITDA and valuation multiples guide covers how to read a multiple in context.

Your opinion. Say whether you think the deal creates value for the acquirer, whether the price looks fair, and what risk could derail the thesis, integration risk, regulatory pushback, or an over-optimistic synergy estimate. An opinion with a reason attached is what makes the answer memorable instead of a recap.

How long should the answer be, and how do you handle follow-ups?

Start with a version around 100 words, tight enough to cover all four parts without rambling, then let the interviewer pull you deeper with follow-up questions. Mergers & Inquisitions is explicit on this: lead with the short version, expand only when asked.

Common follow-ups probe exactly the areas a shallow prep misses: the financing mix (cash versus stock versus debt), whether you'd have done the deal if you were advising the buyer, any unusual terms like an earnout or a collar, and the specific risk factors. If you researched genuinely, these follow-ups are where you gain ground rather than lose it, since a well-prepared candidate has more to say, not less. If you can't answer a follow-up, say so directly and pivot to what you do know rather than guessing, a wrong guess costs you more credibility than an honest gap.

What does a worked example look like?

Take a hypothetical consumer-sector acquisition to see the four parts in practice: a strategic acquirer with 4 billion dollars in annual revenue buying a smaller specialty brand with 300 million dollars in revenue and 60 million dollars in EBITDA, announced three months before the interview.

Background: "Company A, a 4 billion dollar revenue consumer products company, announced the acquisition of Company B, a specialty brand doing about 300 million dollars in revenue and 60 million dollars in EBITDA, three months ago."

Rationale: "The stated rationale was category expansion. Company A wanted a foothold in a faster-growing segment where Company B already had brand equity and distribution, rather than building that presence organically over several years."

Valuation: "Company A paid roughly a 30 percent premium to Company B's pre-announcement trading level, implying an entry multiple in the low double digits on EBITDA, which is on the higher end for the category but in line with recent comparable deals."

Opinion: "I think the strategic logic holds if Company A can retain Company B's management and brand independence. The biggest risk is integration: consumer brands often lose the identity that made them attractive once folded into a larger platform, and that's the piece I'd watch."

That's the full shape in under 120 words, with a specific opinion at the end instead of a flat summary. If the interviewer follows up on financing or the multiple's peer comparison, you already have the research to go one level deeper, which is the whole point of picking one deal and knowing it well. For the fit-question that usually sits right next to this one, see our why investment banking guide, and for where deal discussions land in the process overall, check the investment banking recruiting timeline.

Frequently Asked Questions

What kind of deal should I discuss in an IB interview?

Pick one M&A or leveraged buyout announced in the past six to twelve months, ideally U.S.-based and in a generalist sector like consumer, healthcare, technology, or industrials. Per Mergers & Inquisitions, M&A and LBOs are easiest to research in depth from public sources, unlike capital markets deals such as IPOs, which require more specialized knowledge to discuss well.

How long should my deal discussion answer be?

Open with a version around 100 words that covers background, rationale, valuation, and your opinion, then let the interviewer's follow-up questions pull you into more detail. Mergers & Inquisitions recommends this short-then-expand approach so you don't ramble through information the interviewer didn't ask for.

Should I discuss a deal the bank worked on?

Prepare two different answers. Keep one very short on a deal the specific bank worked on recently, since you only need to show you know something about the firm. Prepare a longer, more in-depth answer on a separate deal you followed independently, ideally one the interviewer wasn't personally involved in, so you're not competing with their firsthand knowledge.

Do I need to know exact valuation multiples?

You should know approximate figures: the premium paid, the rough EV/EBITDA or EV/Revenue multiple, and for an LBO, the entry multiple and leverage level. Mentioning even one or two real numbers puts your answer well above a candidate who only discusses the deal qualitatively. If you're rusty on how these multiples are calculated, our EV/EBITDA and valuation multiples guide walks through the mechanics.

How many deals should I prepare?

One deal, researched in depth, is enough for most interviews. Mergers & Inquisitions is explicit that going beyond one deal creates more information than you can reliably remember under pressure. A single deal you can defend through several rounds of follow-up questions is far stronger than three you can only describe at a surface level.

Is discussing a deal different from a stock pitch?

Yes. A deal discussion walks through a completed or announced M&A or LBO transaction and asks for your opinion on its logic and value. A stock pitch is a forward-looking investment recommendation on a public company's shares. They test related skills, market awareness and independent judgment, but use different structures; see our stock pitch guide for that format specifically.

Sources

• Mergers & Inquisitions: Tell Me About a Recent Deal, Full Guide + Examples (checked July 2026)
• Mergers & Inquisitions: Can You Tell Me About a Recent Deal? (checked July 2026)
• Mergers & Inquisitions: Investment Banking Interview Questions & Answers (checked July 2026)