Best Way to Clearing Investment Banking Interviews - iBanking Training

1. http://www.ibankingtraining.com/ A Guide to Clearing Investment Banking Interviews

2. Most business students desire to get a plum opportunity in investment banking. However, they wring their hands when they’re supposed to field the interview questions related to this sector. Getting a breakthrough in the very first interview is a bit uncertain if you, the interviewee, are unprepared; which is why, you should know the answers to the questions that the investment banker (the interviewer) is likely to ask before bringing you on board. Let’s read these common questions, first.

3. The common questions • What are the different ways to evaluate a company? • Is fundraising beneficial when it’s done through bonds rather than equity? If yes, why’s that? • How adding $100 to the present depreciation account can affect the different figures of a financial statement? If, however, you hem and haw while answering these questions, you’ll need to prepare more vigorously. So just read further to discover some of the points that you must remember before attending an investment banking interview. Know the tasks at hand Any interviewer is expected to blow a gasket whenever you’ll appear for the interview without knowing about the vacancy. For that purpose, you should know not only about the basic practices of investment banking but also about an investment banker’s specific duties; that’ll doubtlessly give you the competitive edge.

4. The first year of your job as a research analyst will never involve you to publish research reports regarding the hot stocks or to pitch deals to CEOs and other financial bigwigs of a corporate giant. Rather, as a first-year research analyst, you’ll be required to make PowerPoint presentations for: • Compiling compo tables • Preparing pitch books Likewise, you must be prepared for building financial models and analyzing fiscal statements anytime; that’s because they’re the bread and butter for any investment banking professional. (However, no investment banker will let entry-level professionals prepare a financial model on the very first day of their job.) The basic financial know-how As an inexperienced investment banker, you must at least possess the general understanding of an income statement, a balance sheet, or a cash flow statement. Basically, during an interview (even for an entry-level position), the interviewer may ask some of the questions that’ll test your skills related to these topics.

5. You should even familiarize yourself with what all figures that, if changed, can easily affect the values in some other sections of a financial statement. It’s, therefore, important that you should understand the concepts that are driving these changes. Now, let’s read up on corporate valuation as it’s a very important topic that can be discussed by the interviewer. Questions that are related to valuing a company are always critical to investment banking interviews. (It’s because company evaluation is one of the basic tasks in any of the investment banking jobs.) There are a range of techniques—the comparable transactions, the Discounted Cash Flows (DCF), and the multiple approaches—that can be used for valuing a company. Among these three techniques, the DCF is likely to be discussed. In a nutshell, the DCF involves developing a forecast of a company’s Free Cash Flow (FCF); and afterward discounting the FCF by the weighted average cost of capital.

6. By keeping these tips in mind, you can rest assured to taste sweet success while appearing for investment banking interviews. However, if you’re unclear about any of the financial fundamentals, we’d advise you to polish your skills first. We know that these concepts can’t be mastered overnight; for that purpose, we recommend you to join a training program that can train you to be an exceptional investment banker and can even let you know the ways through which you can prove your mettle during interviews. In today’s busy world do you really have time attend scheduled live classes? Also take into consideration the significant cost of a classroom based financial modeling and valuation course, which can easily run into four figures. Now there is a convenient and affordable alternative. Sign up for the high quality, FREE financial modeling video tutorials from iBanking Training and take a step closer to a lucrative investment banking career :- www.ibankingtraining.com/ibankingtraining

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