how do you elaborate on a deal?

"Tell me about a deal that you have been following"
how do you answer this question in a clear and concise manner?
how much information is essential?

I assume that if it was an M&A deal, I would start with introducing two companies and then analyse the motive of the acquirer. I would mention other bidders and the how the deal played out eventually. Then, I would briefly talk about the multiples of the acquisition such as P/E and EV/EBITDA.

How does that sound?

3 Comments
 

Pretty much it. I would also add why the target allowed itself to be acquired (i.e. they probably won't get enough growth in the future to justify remaining independent, etc.)

--Death, lighter than a feather; duty, heavier than a mountain
 
Best Response

Definitely Accretive / dilutive. Why would they do it if its dilutive, or why is it Accretive? What assumptions have been made (there are always cost savings assumptions)? As for multiples, it's more important to know it in the context of things, as in it was on the high range of multiples compared to similar transactions.

In general, you have to tell a story. Try to pick one where the bank you're interviewing with was involved in. The best part is when they pick up the story and tell you their experience. I had one interview like that where I talked about the SBC and AT&T merger. I knew the numbers, but I knew the backstory, and that became the start of a very long conversation.

--Death, lighter than a feather; duty, heavier than a mountain
 

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--Death, lighter than a feather; duty, heavier than a mountain

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