During a recent round of interviews with several banks, headhunters sent across a number of potential technical questions that they said I should be very comfortable with. However, through all of my interviews I was never actually asked any technical questions (although I did do a 3 hour modelling exam for one bank). Perhaps this is because I was coming from a couple of years already in IB and the interviewers assumed I knew what I was doing. Still, I took the time to put my thoughts in order. If any of you would like a refresher, you can find some of my notes below.
Just a small point to start with – Valuation is often an art and not an exact science. There are many different ways to approach the numbers, often depending on what you (and your client) want the numbers to show.
It is critical, however, that you can stand in front of a group of senior Japanese executives, for example, and confidently explain to them why your numbers stack up the particular way they do. Similarly, if you are preparing for an interview by simply memorizing the below formulas, but you cannot smoothly explain the function of each piece of each formula, you will not (or at least you should not) proceed to the next round.