Interview Questions - IB
Do you guys ever get asked questions about the acc/dil section of the interview guides? I feel like after over a dozen interviews I don’t recall much being asked on this section of the guides
Based on the highest ranked content on WSO, it's not uncommon for candidates to have varied experiences with the types of questions asked during investment banking interviews. While your experience seems to indicate a lack of focus on accretion/dilution (Acc/Dil) questions, it's important to note that these topics can still surface, especially in more technical or advanced stages of the interview process.
For instance, in the context provided, there's a mention in the "M&A Interview Questions - Beginner to Advanced Questions" section where a user shared their preparation experience, highlighting the importance of being ready for technical questions, including accretion/dilution scenarios. This suggests that while you might not have encountered many Acc/Dil questions in your interviews, they are indeed part of the interview landscape for investment banking roles.
It's possible that the focus of your interviews might have been more on fit, behavioral, or other technical aspects such as DCF, LBOs, or accounting principles, which are also crucial. However, it's always wise to be prepared for a broad range of questions, including Acc/Dil, as interviewers can have different focuses or might delve into these areas to test your depth of knowledge, especially if you progress to later stages of the interview process or encounter interviews with a heavy emphasis on M&A.
Remember, the key to excelling in IB interviews is to be well-rounded and prepared for a variety of technical questions, including but not limited to Acc/Dil scenarios. It's also beneficial to review and understand the underlying principles behind these concepts, as this will not only help you answer direct questions but also demonstrate your comprehensive understanding of financial modeling and valuation techniques.
Sources: M&A Interview Questions - Beginner to Advanced Questions, Are diversity interviews easier for IBD?, The 24 Interview Lessons I Learned on the Way to Getting My First Full Time Job, 20 Most Frequently Asked Questions - London Edition, FDD / TAS Interview and Case Study Mini Guide
Usually I get asked if A company with a P/E of 10x bought B company with a P/E of 8x is this accretive or dilutive? Answer: assuming it a 100% stock deal it is accretive because they are buying the premium for a discount. Super common question have had it asked in every IB interview.
Agreed, was asked the same question recently in one of my interviews.
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