45 Ultimate Investment Banking Interview Questions (2025 Edition)

Breaking into investment banking has never been more competitive. The recruitment process has shifted earlier and earlier, with summer analyst interviews now taking place more than a year before internships even begin. Screening tools, such as HireVue and online tests, have made it even harder to reach the interview stage, and once you do, the questions are designed to test not only technical knowledge but also structured thinking, communication, and genuine commercial awareness.

The guide offers 45 essential investment banking interview questions grouped to reflect the interview flow, accompanied by bonus resources to enhance preparation.

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How to Use the Guide Effectively

Think of the 45 Ultimate Questions as a foundation for preparation. The goal is not to memorize answers word-for-word, but to practice structuring your responses so that you can adapt under pressure. Start by working through the guide once in writing, then shift to answering questions aloud. Mock interviews with peers or mentors are also particularly useful for building confidence.

Remember that interviews are as much about delivery as they are about content. Speak clearly, pause when necessary, and avoid overcomplicating answers. Interviewers appreciate concise, well-structured responses far more than rehearsed monologues.

Why Investment Banking Interviews are so Challenging

Investment banking interviews have always been tough, but in 2025 they look different from even a decade ago. Memorizing answers alone is no longer enough to impress interviewers.

The interview process now tests whether you can reason under pressure, if you can connect the financial theory to practical application, and if you can communicate in a clear and structured way.

Interviewers want to see whether you can:

• Explain your personal motivations and story with confidence
• Understand the financial statements and corporate finance fundamentals
• Apply valuation frameworks correctly and flexibly
• Discuss M&A with real-world awareness of transactions and synergies
• Demonstrate an informed view on industries, markets, and current trends

The 45 questions in our guide reflect this shift and are grouped to mirror the actual flow of an interview.

The Five Sections of the Guide

1. Personal Story and Fit Questions

These opening questions are designed to put you at ease but also to test your communication skills. Expect the interview to cover questions such as:

• Why are you interested in a career in investment banking?
• What strengths and weaknesses you bring to the role?
• How you have overcome challenges and what motivates you?

2. Corporate Finance and Accounting

This section explores your technical foundation. Candidates may need to:

• Walk through the three financial statements and explain how depreciation or taxes affect them
• Judge whether to use EBITDA or net profit when assessing a company
• Calculate the present value of an annuity
• Explain negative working capital and key leverage ratios

3. WACC and Capital Structure

Here, the ability to demonstrate fluency in cost of capital and risk assessment will likely be tested. Be prepared to:

• Define WACC and calculate it for both public and private firms
• Discuss how debt affects WACC
• Explain concepts like Beta, levered Beta, and cost of equity

4. Valuation

Valuation questions test your ability to estimate company value using multiple methods. Candidates will likely be asked to cover:

• Enterprise value and market capitalization
• DCF analysis and the mid-year convention
• Trading and transaction comparables
• How to select peer companies and apply valuation multiples
• Advanced questions such as valuing conglomerates or explaining why companies with larger revenue may have smaller market caps

5. Mergers & Acquisitions

Finally, the guide dives into deal-specific topics, which are often the toughest to answer. You will learn to:

• Explain the motives behind M&A transactions
• Differentiate between types of deals: horizontal, vertical, and conglomerate
• Discuss synergies and how they are realized
• Value a company in an acquisition scenario
• Walk through the main steps of a merger model
• Assess whether a transaction is accretive or dilutive
• Understand concepts such as goodwill and the role of investment banks in M&A

Final Thoughts

The investment banking interview process is demanding, but it rewards candidates who prepare smartly. Download your free copy of the 45 Ultimate Investment Banking Interview Questions Guide (2025 Edition) today and gain access to the bonus cheat sheets and case study that will give you an extra edge.

Additional Resources

Investment Banking – Resume Tips
Investment Banking Analyst – Role Explained
Investment Banking Careers – Spring Week Internships
Investment Banking Case Studies – Job Application
Investment Banking Course