Investment Banking interview preparation
Every question below is either traced to a named firm from a public candidate report, or tagged at desk level when we could not trace it. Answers are written the way you would actually say them out loud — answer first, then the mechanism, then the limitation.
100 questions, mapped to the firms that asked them
- Questions
- 100
- Traced to a firm
- 100
- Firms
- 46
- Updated
- September 2026
001Walk me through the three financial statements and how they connect.Goldman SachsInvestment Banking · New York · 2026Guggenheim SecuritiesHealthcare · Glen Allen · 2026Piper SandlerInvestment Banking · New York · 2026Truist SecuritiesReal Estate · Atlanta · 2026Moody'sCorporate · New York · 2022
Say this
The income statement shows profitability over a period, the balance sheet is a snapshot of what the company owns and owes at a point in time, and the cash flow statement reconciles the two by tracking the actual cash that moved. They link through net income and cash.
Then walk it
- Net income is the bottom of the income statement. It becomes the top line of the cash flow statement.
- On the cash flow statement you add back non-cash charges like depreciation, adjust for working capital changes, then run through investing and financing.
- The ending cash number flows to the top of the balance sheet as the cash balance.
- Net income also flows into retained earnings in shareholders' equity, less any dividends. That is the second link.
- So the balance sheet balances because both sides of net income land in it: the cash it generated on the asset side, the earnings it retained on the equity side.
Where candidates lose it
Reciting the three statements as three separate definitions and stopping. The question is entirely about the linkage. Say the two connection points out loud, net income into retained earnings and ending cash onto the balance sheet, or you have not answered it.
Expect next
- Which statement would you look at first if you could only pick one, and why?
- A company is profitable but running out of cash. Where do you look?
- Why does the balance sheet actually balance?
Reported by candidates at Goldman Sachs (Investment Banking, New York, 2026); Guggenheim Securities (Healthcare, Glen Allen, 2026); Piper Sandler (Investment Banking, New York, 2026); Truist Securities (Real Estate, Atlanta, 2026); Moody's (Corporate, New York, 2022). Source: Wall Street Oasis.
004How do you get from EBITDA to net income?Guggenheim SecuritiesInvestment Banking · Chicago · 2026Truist SecuritiesCorporate Banking · Atlanta · 2025
Say this
Subtract depreciation and amortisation to get EBIT, subtract interest to get pre-tax income, then subtract taxes to get net income. If there is anything below the line like minority interest or discontinued operations, strip that out too.
Then walk it
- EBITDA less D&A gives EBIT, which is operating profit.
- EBIT less net interest expense gives pre-tax income, sometimes called EBT.
- EBT less taxes gives net income.
- Watch for minority interest. If the company consolidates a subsidiary it does not fully own, you subtract the minority's share to get to net income attributable to the parent.
- That last step matters for EPS, because EPS is built on net income to the parent, not consolidated net income.
Where candidates lose it
Forgetting minority interest and preferred dividends. On a clean question nobody cares, but the moment the interviewer hands you a consolidated group, missing the minority line means your EPS is wrong and your comps are wrong.
Expect next
- Why do bankers use EBITDA at all if net income is what shareholders get?
- When would EBITDA be a misleading metric?
- How do you calculate free cash flow from cash flow from operations?
Reported by candidates at Guggenheim Securities (Investment Banking, Chicago, 2026); Truist Securities (Corporate Banking, Atlanta, 2025). Source: Wall Street Oasis.
057What makes a good LBO candidate?Warburg PincusPrivate Equity · San Francisco · 2014Guggenheim SecuritiesHealthcare · London · 2026
Say this
Predictable, recurring cash flow that can service debt, low capital intensity, a defensible market position, an identifiable operational improvement, and a credible exit. Cash flow stability matters more than growth.
Then walk it
- Stable cash flow first, because the debt has to be serviced whatever happens. Contracted or subscription revenue, low cyclicality, sticky customers.
- Low CapEx, because every dollar into maintenance is a dollar not repaying debt.
- Strong market position and real barriers to entry, so margins survive the hold period without the company needing to outspend rivals.
- A visible value-creation lever: an underinvested sales function, a bloated cost base, a fragmented sector that supports a bolt-on strategy, or a non-core division to divest.
- And an exit that is not hypothetical. A deep strategic buyer list, or a peer set that trades publicly at a decent multiple. The best entry price in the world is worthless if nobody will buy it from you in five years.
- Conversely, the anti-candidate is a high-growth, cash-burning, cyclical business with heavy CapEx. It can be a great investment and a terrible LBO.
Where candidates lose it
Saying 'high growth' near the top of your list. Growth consumes cash and cash service is the constraint. Venture-style growth is the opposite of what an LBO needs, and saying so shows you understand why the structure exists.
Expect next
- Tell me about a company you like. Is it a good LBO candidate?
- Why is high growth not necessarily good here?
- What type of company is a good candidate for a dividend recap?
Reported by candidates at Warburg Pincus (Private Equity, San Francisco, 2014); Guggenheim Securities (Healthcare, London, 2026). Source: Wall Street Oasis.
Firm tags come from public, anonymous candidate reports on Wall Street Oasis: strong signal, not sworn testimony. Firms are named as the places a question was reported, not as partners of Fin Maverick. Answers are written for this page to show how to think out loud; they are not scripts to recite.