Private Equity interview preparation
Buyout, growth and credit. Every question is either traced to a named firm from a public candidate report, or tagged at desk level when we could not trace it. Answers lead with the point, then the mechanism, then the limitation.
100 questions, mapped to the firms that asked them
- Questions
- 100
- Traced to a firm
- 83
- Firms
- 40
- Updated
- September 2026
095What is the difference between enterprise value and equity value, and which do you negotiate?Truist SecuritiesCorporate Banking · Atlanta · 2025William BlairMergers and Acquisitions · London · 2026
Say this
Enterprise value is the price of the operating business; equity value is what the shareholders receive after settling everyone with a prior claim. In a deal you negotiate enterprise value, then bridge to the cash the seller actually gets.
Then walk it
- Enterprise value is what the business itself is worth, independent of how it is financed. That is why it is quoted as a multiple of EBITDA and why it is the number in the headline.
- The bridge: less debt, plus cash, less preferred, less minority interest, less debt-like items such as pension deficits and unpaid capex creditors, gives equity value.
- The reason deals are negotiated on enterprise value is comparability. The seller's capital structure is irrelevant to what the business is worth, and it will be refinanced anyway.
- Where the money actually moves is the debt-like items list. Whether deferred revenue, accrued bonuses, customer deposits or lease liabilities count as debt is negotiated line by line, and each line changes the cash the seller receives.
- Then the working capital adjustment on top, comparing delivered working capital to the agreed peg.
- So the practical answer: you agree enterprise value first because it is the clean comparable number, and then the real negotiation happens in the bridge and the completion mechanics, which is where a few percent of deal value is routinely won or lost.
Where candidates lose it
Giving the textbook formula without saying that the fight is over the debt-like items in the bridge. That detail is what separates someone who has been on a live deal from someone who has read a guide.
Expect next
- Which items get argued over as debt-like?
- How does the working capital peg interact with this?
- How do you treat an underfunded pension?
Reported by candidates at Truist Securities (Corporate Banking, Atlanta, 2025); William Blair (Mergers and Acquisitions, 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.
