Preparing for I-Banking Internship Interviews...

A couple questions. What parts of the vault guide will come up in a banking interview? Will we have to do a DCF or other valuation example during interviews? Or is it enough to just be able to have an intelligent conversation/answer basic questions about DCF?

Will we have to know the 3 financial statements front and back? be able to draw conclusions from it? What exactly will they ask about the financial statements?

The vault guide is great but I feel some of the more in-depth stuff is geared towards MBA candidates going for full-time positions.

Any advice is greatly appreciated!

 

depending on your background, you'll need to look at more than just the vault guide. good interviewers will try to see if you actually have an intuition for the basic finance stuff, and things wont go well for you if you just memorize and blurt out a bunch of formulas.

don't try to take any short cuts in prepping for interviews. instead, sit down and really think about the basic concepts. good luck!

 

It depends on your background (major, coursework, prior work experience).

If you have prior and substantive financial work experience, are a finance major, or have taken finance courses, definitely be prepared for technical questions.

If you're a liberal arts major, GENERALLY speaking, your interview will be more fit-oriented.

Regardless of which pool you fit in, I would recommend knowing the 1) 3 financial statements and how they flow together and 2) the 3 main valuation methods.

 
Best Response

I was an econ major, the technical questions I saw in all of my interviews were very basic, i.e. how would you value a company? What is WACC? I personally wasn't given any accounting questions, but as devil's advocate mentioned you should be familiar with the 3 financial statements and how they are linked up. The basic accounting material isn't rocket science, not hard to pick up in one sitting. As ChelseaFC mentioned, don't regurgitate, know the logic behind the material so you can speak comfortably about it. A good interviewer will spot memorization immediately.

Expect some econ questions and general finance knowledge, especially regarding current events. Obviously you'll have to be tuned-in to what's going on right now in the markets. I would agree with DA in that your interview will probably be more "fit" oriented, along with the ubiquitous "why banking" and "why this company" questions, which you should have down cold. Good luck.

 

why is it that liberal art majors and whatnot have an easier interview than finance majors? doesn't really make sense to me.

 
Goon:
why is it that liberal art majors and whatnot have an easier interview than finance majors? doesn't really make sense to me.

Not everyone finds fit interviews to be easier than technical interviews.

Besides, interviews are always tailored to your existing knowledge. It wouldn't make sense to ask a finance and polisci major a financial technical question of equal difficulty.

With the finance major, the question is going to be:

Ok well this kid studied finance for 3 years, so does he definitely have an understanding of A, B, C, and D? Let's find out.

With the polisci major, the question is going to be: How do we know he/she has a true interest in finance?

Is he/she intelligent enough to learn the material quickly? Which is why liberal arts major are sometimes subjected to brainteasers and quick math.

Has this person show initiative in familiarizing herself or himself with basic knowledge? (I.E. questions on valuation methods, WACC, flow of the statements)

It's different strokes for different folks. A person with little exposure to finance courses is not going to find it easier to learn the basics than someone who has taken finance for 3 years and as a result is asked some advanced questions.

 
Goon:
why is it that liberal art majors and whatnot have an easier interview than finance majors? doesn't really make sense to me.

...and I got asked some finance related questions about valuation and what not.

I find it funny when people ignorantly assume that because you are an econ major, you will know all of this accounting and finance stuff. Ask me about the manipulation of M' or the effects of US farm subsidies on the cotton economy of Benin or 100 other complex topics that if I answer intelligently, would probably indicate that I am more than capable of handling being a Excel and PowerPoint slave for you over the next 2 years... (always AMAZED out how some undergrad finance/accounting majors with 4.0's from memorizing their textbooks know nothing of what is going on in the world of international business and economics... maybe they don't need that to be successful in entry level IB, but if they want to run a PE shop, I'd imagine they will be in trouble)

... of course if you took a financial markets class within the econ deptment your going to need to know things like Black Scholes and CAPM as well...

anyway, my 2 cents.

 

@gordo - Why are WSO guides the best?

@SECfinance - I completed my undergrad in Economics (in the UK) and next year I'm starting MSc Finance in France. Haven't really studied business/finance before though

@wallstaks - Isn't the accounting knowledge needed covered in interview guides though?

 
frank90:
@gordo - Why are WSO guides the best?

@SECfinance - I completed my undergrad in Economics (in the UK) and next year I'm starting MSc Finance in France. Haven't really studied business/finance before though

@wallstaks - Isn't the accounting knowledge needed covered in interview guides though?

I think almost everything you would need to know for an SA interview (as far as finance/accounting knowledge) will be covered in your MSF classes, but I don't know too much about the typical curriculum in those programs.

Most of the accounting knowledge will be covered in interview guides, but I recommend a textbook as a resource so you actually understand the concept instead of just memorizing what the guide has to say on the subject.

MM IB -> Corporate Development -> Strategic Finance
 

Just run a quick search on the forum as well to double check that you have all the resources you need, there has been some good shit posted in the past.

'Before you enter... be willing to pay the price'
 

@ Azimut - thanks will do. By industrial knowledge do you mean knowing some M&A/IPO deals?

@ secfinance - sure I see. Do you think a corporate finance textbook will do, or a financial accounting source is more appropriate?

@bep bep12 - I did look around and there are different opinions about all the different interview guides. There's generally positive feedback about all of them. WSP is not menitoned very often, BIWS seems to be quite good/popular. Which one do you suggest?

 
frank90:
@ Azimut - thanks will do. By industrial knowledge do you mean knowing some M&A/IPO deals?

@ secfinance - sure I see. Do you think a corporate finance textbook will do, or a financial accounting source is more appropriate?

@bep bep12 - I did look around and there are different opinions about all the different interview guides. There's generally positive feedback about all of them. WSP is not menitoned very often, BIWS seems to be quite good/popular. Which one do you suggest?

Industry knowledge means you know what's going on in the markets, recent deals/transactions the bank you're interviewing with has worked on, if they are industry-specific/a boutique understanding their industry in a little more detail, etc.

You'll need a financial accounting source, most corporate finance textbooks don't explain accounting.

I suggest BIWS and WSO.

MM IB -> Corporate Development -> Strategic Finance
 

rrrrr01 - That site is amazing. Thank you so much for the help.

Yacht_man - I don't want to say which bank for identity reasons. However, this interview is extremely early/unique situation and the main chunk of SA recruiting for the firm won't start until after the new year.

 

Check out the Vault Guides or the WallStreetOasis guides. Both provide very detailed questions and answers for interview prep, both technical and behavioral. I tend to like the WSO guides, and like to support the site, but the Vault is good as well.

 

Facilis ad quia magni in. Excepturi asperiores rerum architecto modi animi. Qui dolor vel temporibus repellat. Magni molestias assumenda quidem ea laborum ut laboriosam.

Harum magnam voluptas quasi earum ad dolorem. Iure et magni explicabo vel nihil animi animi.

Et sit totam exercitationem occaecati nulla. Dolores libero eum eius velit architecto earum nihil. Fugit dolore consectetur quasi sed.

Et id maiores non est libero accusantium. Consequatur sed repellendus animi laborum. Vitae molestiae velit nisi iusto porro aut dolor et.

 

Ut earum quia voluptatem libero cumque dolorum et. Maxime repellat quis laborum voluptatem. Molestiae et provident maiores doloribus qui saepe consectetur.

Voluptate rerum in nostrum quisquam consequatur vel nesciunt. Ea quo sapiente mollitia sit in. Dolorem impedit assumenda cumque dicta adipisci repellat a. Natus praesentium voluptatem earum tempora tempore unde. Et corrupti quia eius nesciunt ipsum ipsam accusamus minima. Voluptate non eos hic et exercitationem molestiae.

A non molestiae quos repellendus veniam necessitatibus et dolore. Nam sunt veritatis qui harum molestiae aut aspernatur. Sint earum ut iste rerum modi quod ut.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”