How to Prepare for Investment Banking Interviews
A practical investment banking interview preparation plan covering technicals, behaviorals, firm research, spoken reps, and mock interviews.
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To prepare for an investment banking interview, learn the core technical concepts, build a small bank of personal stories, research each target firm, and spend most of the final stretch answering questions aloud. Reading creates familiarity. Interviews require retrieval, structure, and calm delivery under follow-up pressure.
TL;DR
- Cover accounting, enterprise value, valuation, DCF, M&A, and LBO fundamentals first.
- Prepare six to eight adaptable stories plus concise answers for “Tell me about yourself,” “Why banking?”, and “Why this firm?”
- Move from open-book study to closed-book spoken reps as early as possible.
- Track errors by type: missing knowledge, wrong mechanics, weak structure, or poor delivery.
- Finish with mixed mock interviews and firm-specific questions, not another full reread.
What does an investment banking interview test?
| Area | What the interviewer is testing | Evidence you are ready |
|---|---|---|
| Accounting | Whether you understand how the statements move together | You can explain a change without guessing signs |
| Valuation | Whether you can choose and defend a method | You state the method, drivers, and limitations |
| DCF and LBO | Whether you understand mechanics and sensitivities | You can handle a changed assumption aloud |
| Behavioral | Motivation, judgment, teamwork, and self-awareness | Your answer uses a specific example and a clear result |
| Firm fit | Whether your interest is researched and credible | The answer fails the “swap another bank's name” test |
| Markets and deals | Commercial awareness and point of view | You explain relevance, risks, and your own view |
The process varies by bank, office, role, and year. Treat any question list as a coverage map, not a prediction. Barclays, for example, says its early-career assessment centre can contain two or three stages including a motivational interview. Lazard UK describes a five-question video interview and explicitly advises candidates to practice how they appear on camera. The format changes, but clear thinking and practiced delivery remain transferable.
What is the best order to study technicals?
Start with dependencies rather than difficulty. Accounting supports enterprise value. Enterprise value supports valuation. Valuation supports transaction questions.
- Three financial statements and common accounting changes.
- Enterprise value versus equity value.
- Trading comparables and precedent transactions.
- DCF mechanics, WACC, and terminal value.
- Accretion and dilution plus purchase accounting basics.
- LBO sources and uses, debt paydown, MOIC, and IRR.
Use our technical interview question guide as the map. For deeper mechanics, work through walk me through a DCF, walk me through an LBO, and how the three statements link.
Do not wait until the end to speak. After each concept, close the notes and answer one basic question in 60 seconds. Then answer one follow-up that changes an assumption. If you cannot explain the effect cleanly, reopen only that section.
How should you practice behavioral questions?
Build a story bank, not 30 separate scripts. Six to eight stories usually cover leadership, teamwork, conflict, failure, pressure, initiative, persuasion, and attention to detail. For each story, write one line for the situation, task, actions, result, and lesson. The actions should take most of the answer.
Prepare three core answers separately:
- Your 90-second background story.
- Why investment banking now.
- Why this bank, group, and office.
Use the investment banking story structure and the Why investment banking answer guide. Memorize the logic and evidence, not every word. Over-scripted delivery sounds brittle when the interviewer interrupts.
How do you research a specific bank?
Your firm answer needs two or three reasons that connect the platform to your own interests. Research the bank's business model, strong groups, recent transactions, office footprint, and anything learned from real conversations. Then run the swap test: if the answer still works after replacing the firm's name, it is too generic.
Prepare one recent transaction you can explain without inventing the bank's role. Cover the parties, transaction type, value or valuation context, rationale, financing, risks, and your view. Our guide on discussing a deal in an IB interview gives the exact structure.
What should a two-week practice plan look like?
| Days | Main work | Daily output |
|---|---|---|
| 1 to 3 | Accounting, EV, and valuation review | 15 closed-book questions |
| 4 to 6 | DCF, M&A, and LBO | 12 questions plus four follow-ups |
| 7 to 8 | Story bank and core fit answers | Three recorded answers |
| 9 to 10 | Firm and deal research | Two firm answers and one deal discussion |
| 11 to 12 | Mixed technical and behavioral reps | One 30-minute mock daily |
| 13 | Full first-round and Superday simulation | Two mocks with an error review |
| 14 | Light recall and rest | Weakest ten questions only |
If you have less time, keep the sequence but cut volume. Do not cut feedback. Ten reviewed answers teach more than 40 answers you never diagnose.
How do you know when you are ready?
You are ready when you can answer mixed questions without warming up, explain errors after a follow-up, and keep answers structured even when you do not know everything. Track three indicators: first-attempt correctness, number of prompts needed, and repeated weakness by topic.
A final mock should include technicals, fit, a deal or market question, and at least one interruption. For final-round format and pressure, use the Superday preparation guide.
Frequently Asked Questions
How many weeks should I prepare for an investment banking interview?
Two to four focused weeks is a practical range for candidates with basic finance exposure, but the right duration depends on the starting gap. Begin earlier if accounting and valuation are new. Compress review if you already know the concepts and mainly need spoken reps.
Should I memorize the 400 questions guide?
No. Use it as a coverage checklist. Memorizing wording fails when the interviewer changes an assumption or asks why. Learn the mechanics, then practice varied follow-ups aloud.
How many mock interviews should I do?
Do enough to find and then reduce repeated errors. Three to six reviewed mocks is more useful than a large unreviewed count. Include at least one firm-specific mock and one mixed final-round simulation.
What if I only have three days?
Prioritize the core story, Why banking, Why this firm, accounting links, EV versus equity value, valuation methods, DCF, one deal, and two mixed mocks. Skip obscure questions until the core answers are stable.
Sources
- Barclays early careers application process: https://search.jobs.barclays/internship-graduate-application
- UBS early careers: https://www.ubs.com/global/en/careers/early-careers.html
- Lazard application and interview advice: https://www.lazard.com/about-lazard/locations/united-kingdom/careers-in-the-united-kingdom/sharing-insights-your-questions-answered/
- Wall Street Oasis interview prep course: https://www.wallstreetoasis.com/courses/interview-prep