Investment Banking · Sector Guide

Investment Banking Interview Preparation

Common questions, top firms, salary comparison, career paths, and free AI-scored practice for investment banking interviews.

£65,000 base

Avg salary

20+ firms

Firms covered

~1-3% offer rate

Competitiveness

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Overview

What investment banking interviews look like

Investment banking interviews follow a three-stage structure at most firms: online application with HireVue video interview, followed by assessment centre with in-person interviews. Some firms add a phone screen between HireVue and assessment centre.

HireVue stages typically involve 4-6 pre-recorded questions covering behavioural competencies, motivation, and basic commercial awareness. Assessment centre stages involve 2-5 back-to-back interviews with increasingly senior bankers, mixing behavioural questions with technical finance questions.

Technical questions at assessment centre stage cover DCF analysis, valuation methods, enterprise value vs equity value, LBO mechanics, and recent M&A deals. The depth depends on the firm and division — M&A-focused groups test harder on technicals than Capital Markets groups.

Questions

Common investment banking interview questions

  • 1Why investment banking?
  • 2Walk me through your CV.
  • 3Tell me about a deal you've followed recently.
  • 4Walk me through a DCF analysis.
  • 5What is enterprise value vs equity value?
  • 6How do the three financial statements link together?
  • 7Tell me about a time you showed leadership.
  • 8Why this firm over its competitors?
  • 9If you had £1 million to invest, where would you put it?
  • 10What's happening in the markets right now?
  • 11Walk me through an LBO.
  • 12How would you value a company with no revenue?
  • 13Tell me about a time you worked under pressure.
  • 14What makes a good pitch book?
  • 15Why this division (M&A, ECM, DCM, etc.)?

Free practice

Practise a investment banking interview question

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HireVue Practice

Goldman Sachs — HireVue Practice

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30s preparation 2 min recording Camera + mic

That was one generic IB question. Intervyo has firm-specific question banks for Goldman Sachs, J.P. Morgan, Morgan Stanley, and 17 more banks. Each scored against the competency framework that firm uses. Start free trial →

Technicals

Key technical knowledge

DCF Analysis

Discount free cash flows to present value using WACC. Key inputs: revenue growth, margins, capex, working capital, terminal value, discount rate.

Valuation Methods

Three primary methods: DCF (intrinsic value), comparable companies (relative valuation), precedent transactions (acquisition multiples).

Enterprise Value vs Equity Value

EV = Equity Value + Net Debt + Minority Interest + Preferred Stock - Associates. Know the bridge and why each item is included.

LBO Mechanics

Acquire company with debt, use cash flows to pay down debt, exit at multiple. Returns driven by debt paydown, EBITDA growth, and multiple expansion.

Financial Statement Linkages

Net income flows to retained earnings on the balance sheet and is the starting point of the cash flow statement. Know how every line item connects.

M&A Analysis

Accretion/dilution analysis, merger consequences, synergy valuation, offer premium analysis. Know when a deal is accretive or dilutive to EPS.

Compensation

Investment Banking salary comparison

FirmGraduateInternBonus
Goldman Sachs~£65,000~£55,000 pro-rata~£30K
J.P. Morgan~£65,000~£55,000 pro-rata~£30K
Morgan Stanley~£65,000~£55,000 pro-rata~£25K
Evercore~£75,000~£60,000 pro-rata~£40K
Lazard~£70,000~£55,000 pro-rata~£35K
Barclays~£50,000~£42,000 pro-rata~£25K

Career path

Investment Banking career progression

Analyst0 years£50-75K base

Financial modelling, pitch books, deal execution. 2-3 year programme.

Associate2-3 years£90-120K base

Project management, client interaction, mentoring analysts.

Vice President5-7 years£150-250K base

Deal origination, managing relationships, leading transactions.

Director / Executive Director8-12 years£300-500K base

Business development, strategic client relationships.

Managing Director12+ years£500K-1M+ total

Rainmaking, firm leadership, significant revenue responsibility.

Getting in

How to break into investment banking

1

Apply early. Most banks use rolling admissions — the pool of available spots shrinks weekly. Applications opening in August should be submitted by mid-September at the latest.

2

Network through on-campus events, LinkedIn, and alumni connections. Referrals significantly increase your chance of getting past the initial screening.

3

Know your technicals. DCF, valuation methods, and financial statement linkages are tested at every bank. Start preparing months before applications open.

4

Prepare firm-specific answers. "Why this bank?" should reference specific deals, people, culture, or programme features — not generic prestige.

5

Build commercial awareness. Read the FT daily. Follow major deals and market movements. Have a view on current events that you can articulate concisely.

6

Use spring weeks as your entry point. Conversion rates from spring week to summer internship to full-time offer create the strongest pipeline into banking.

7

If you're from a non-target university, over-index on networking, extracurriculars, and relevant work experience to compensate.

FAQ

Investment Banking FAQs

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