Top technicals to master for Investment Banking interviews
If you're preparing for IB recruiting, you might want to skip memorizing hundreds of questions and focus on understanding these core concepts:
* 3-Statement Accounting Flows: Understand how changes in working capital, depreciation and debt flow through Income Statement, Balance Sheet and Cash Flow Statement. Interviewers will alter variables to test if you understand the mechanics.
* Enterprise Value vs. Equity Value: Know the bridge between two and understand why items like cash are subtracted and debt is added to keep valuation multiples like-for-like.
* LBO Levers: Master how purchase/exit multiples, leverags ratios and revenue growth impact overall IRR. Be prepared to walk through a simple paper LBP in your mind.