Preface
Investment banks perform two major functions. First, they act as intermediaries between investors, or suppliers of capital, and entities that request capital such as corporations. Second, investment banks advise corporations on mergers, acquisitions, restructurings, and other major corporate actions.
Jobs within the investment banking industry vary widely; some roles can be very lucrative and as a result be highly sought after and competitive.
This book seeks to give any student or professional interested in the investment banking industry the technical tools to ace an investment banking interview. Having worked in the investment banking industry, I will give my personal perspective on what the investment banking interview process is like. I will provide advice and strategy on how to best navigate such an interview process. The book will contain a series of standard investment banking and interview preparation questions that increase in difficulty. We will also go through a series of case studies important for later-stage investment banking and private equity interviews. This book is the ideal go-to guide for anyone who is looking to break into the industry.
HOW THIS BOOK IS STRUCTURED
This book is divided into five parts:
- Introduction to Investment Banking
- Core Financial Statements
- Valuation
- Mergers and Acquisitions
- Leveraged Buyouts
Each part will aim to give a brief overview of the core concepts: enough to better your knowledge for investment banking interviews or just a refresher. After each overview, chapters will contain interview questions and answers in increasing difficulty. These questions and answers do not capture every single possible topic, but will cover the most common. The most important thing to remember is you will never know exactly what will be asked in an interview, or how a particular question or scenario will be posed; but if you have the proper conceptual understanding of the core topics, you will be able to handle a multitude of questions asked on each topic.
If you need a stronger technical understanding or an actual modeling overview of each topic, I would recommend reading my other books, which dive deeper into each topic and provide steps for building a model from scratch:
- Financial Modeling—Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
- Valuation—Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
- Mergers and Acquisitions—Mergers, Acquisitions, Divestitures, and Restructurings: A Practical Guide to Investment Banking and Private Equity
- Leveraged Buyouts—Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity