Investment Banking Interview Questions
The complete guide to investment banking interview questions: technical, behavioral, and deal/markets questions with example answers for each category.
Jun 11, 2026 · 7 min read
Investment banking interview questions fall into three buckets: technical, behavioral (fit), and deal/markets. Technical questions test accounting, valuation, DCF, and LBO mechanics. Behavioral questions probe why you want banking, how you work in teams, and how you handle pressure. Deal and markets questions check whether you follow real transactions and have an investment view. According to Mergers & Inquisitions, the most common technical topics in entry-level interviews are accounting, equity value versus enterprise value, and valuation/DCF, so weight your prep there. This guide walks through each category with example questions and how to structure a strong answer.
TL;DR
- Three categories: technical, behavioral/fit, and deal/markets. Cover all three.
- Mergers & Inquisitions ranks accounting, enterprise value, and DCF as the most common technical topics.
- Prepare three core stories: a leadership story, a success story, and a failure story.
- Lead every technical answer with structure, then mechanics. The DCF is the single most common technical question.
- Have one stock pitch and one recent deal ready before any first-round interview.
What are the main types of investment banking interview questions?
Investment banking interview questions split into technical, behavioral, and deal/markets. Technical covers accounting and valuation. Behavioral covers fit, motivation, and teamwork. Deal/markets covers live M&A, your stock pitch, and your market view. M&I groups them the same way: fit questions, technical questions, and "other" topics like restructuring and discussing transactions.
Most first-round interviews are weighted toward behavioral and motivational questions, with technical questions used to screen out anyone who clearly hasn't prepared. The deeper technical grilling usually comes later, often in the superday. Knowing which category a question belongs to helps you pick the right answer shape: a structured framework for technical, a story for behavioral, and a clear thesis for markets. The table below maps the three buckets to what each one is actually testing.
| Category | What it tests | Example question |
|---|---|---|
| Technical | Accounting, valuation, modeling | "Walk me through a DCF." |
| Behavioral / fit | Motivation, teamwork, resilience | "Why investment banking?" |
| Deal / markets | Market awareness, judgment | "Pitch me a stock." |
What technical questions should you expect?
Expect accounting, enterprise value, and valuation questions in nearly every first-round screen. The most predictable single question is "walk me through a DCF." You should also be ready to explain how the three financial statements connect, the difference between equity value and enterprise value, and how a leveraged buyout generates returns.
Accounting questions test whether you understand how transactions move through the income statement, balance sheet, and cash flow statement. A classic prompt: "If depreciation goes up by 10 dollars, walk me through the three statements." Valuation questions test the DCF, comparable companies, and precedent transactions. For the DCF specifically, lead with the five-step structure before any numbers, our walk me through a DCF guide breaks down the answer interviewers want. For deeper drilling, the investment banking technical interview questions hub covers accounting, valuation, and modeling in detail, and DCF interview questions covers the follow-ups.
How do you answer behavioral and fit questions?
Behavioral questions are best answered with prepared stories told in a clear arc: situation, what you did, and the result. Before any finance interview, build three core stories, a leadership story, a success story, and a failure story, that you can adapt to almost any prompt. The most important fit question is "why investment banking," which needs a specific, non-generic answer.
Fit questions cut more candidates than people expect, so don't treat them as a warm-up. "Why banking," "why our firm," "tell me about yourself," and "what's your greatest weakness" all show up repeatedly. The mistake is giving a vague, money-driven answer to "why banking." Tie your reasons to concrete experiences (a deal you read about, a finance class, an internship task you enjoyed) and to skills the job actually uses. Our why investment banking answer guide shows how to build a reason that survives follow-up questions.
What deal and markets questions come up?
Deal and markets questions test whether you follow the industry and can form a view. The two staples are "tell me about a recent deal" and "pitch me a stock." For the deal, pick a transaction you can explain: the buyer, the target, the rationale, and roughly the price or multiple. For the stock, have a clear thesis with two or three catalysts.
Interviewers use these to separate candidates who memorized a guide from those who are genuinely interested in markets. You don't need a portfolio manager's depth, but you do need specifics. Follow one or two recent M&A deals closely enough to discuss the strategic logic and how the acquirer is paying (cash, stock, or debt). For the stock pitch, know the company's business model, why it's mispriced, and what would prove you right or wrong. The 400 questions investment banking guide is the standard reference for the full question bank across all three categories.
How should you prepare across all three categories?
Prepare the technicals first because they're the most predictable, then build your stories, then your markets view. Know the three statements cold, memorize the five-step DCF, prepare three behavioral stories, and follow one or two live deals. According to M&I, accounting and DCF are the highest-frequency technical topics, so they deserve the most reps.
A practical sequence: spend the bulk of your time on accounting, enterprise value versus equity value, and the DCF, since those appear most often. Then write out your three behavioral stories and your "why banking" and "why this firm" answers, and practice them out loud. Finally, prepare one stock pitch and one recent deal. Practicing aloud matters because interviews require you to explain reasoning in real time, not just recognize the right answer on paper.
Frequently Asked Questions
How many investment banking interview questions are technical?
Technical questions dominate the screening function but vary by round. Mergers & Inquisitions notes that accounting, equity value versus enterprise value, and DCF are the most common technical topics in entry-level interviews. First rounds often lean behavioral, with technicals used as a filter; superdays go deeper on modeling.
What is the most common investment banking interview question?
"Walk me through a DCF" is the most common technical question, and "why investment banking" is the most common fit question. Both appear in nearly every process, so a polished answer to each is non-negotiable. Lead the DCF with its five-step structure, not numbers.
How do you answer "why investment banking"?
Give a specific, experience-grounded reason tied to skills the job uses, not a generic "I like finance" answer. Reference a concrete moment (a deal, a class, an internship task) and connect it to what bankers actually do. See our why investment banking answer guide for a full framework.
Do investment banking interviews include brain teasers?
Sometimes. Mergers & Inquisitions lists brain teasers as a technical sub-category, though they're less common than accounting and valuation. They test structured thinking under pressure rather than a memorized answer. Practice a few estimation and probability puzzles so you're not caught off guard.
How many rounds are in an investment banking interview?
Most candidates face several rounds, typically a first round (phone or HireVue), one or more interviews, and a final superday. Early rounds screen for fit and basic technicals; the superday goes deeper. See our investment banking superday guide for what to expect in the final round.
What's the best way to practice technical questions?
Practice out loud and in mock interviews, not just by reading. The skill being tested is explaining your reasoning in real time, which silent reading doesn't build. Work through the investment banking technical interview questions bank, then rehearse each answer aloud until the structure is automatic.
Sources
- Mergers & Inquisitions: Investment Banking Interview Questions & Answers (checked June 2026)
- Mergers & Inquisitions: 400 Questions Investment Banking (checked June 2026)
- Wall Street Oasis: Investment Banking Interview Questions and Answers (checked June 2026)
- IGotAnOffer: 14 IB Technical Interview Questions (checked June 2026)