Technical Investment Banking Interview Prep: Six Modules, 1,110 Flashcards

Technical questions decide more investment banking interviews than any other part of the process. You can tell a strong story about why you want to work on deals, but if you stall on how a change in depreciation moves through the three statements, or cannot explain why a DCF uses unlevered free cash flow, the conversation is over. The technical track of haus of deal exists to close that gap.

It covers six modules that build on each other: Accounting, Valuation, Capital Markets, LBO, M&A Accounting and Financial Modeling. Together they hold 1,110 flashcards, each with a worked solution, written for the DACH recruiting market. Every card in this track is free to explore, with no subscription and no sign-in.

On this page you find how the track is structured, what each module covers, in which order to work through it, and how to turn flashcards into answers that hold up when an interviewer pushes back.

Why technical preparation decides your interview

Investment banking interviews in Germany, Austria and Switzerland typically combine two blocks: fit questions about your motivation and background, and technical questions that test whether you understand how companies are analysed, valued and financed. Depending on the bank and the division, technical content shows up in first-round phone interviews, in assessment centres or superdays, and in case studies or modeling tests.

The reason banks test this so consistently is practical. As an intern or analyst you will spend much of your time on financial statements, valuation work, pitch books and models. An interviewer wants to see that you can do this work without being taught the basics from scratch, and that you think in the logic of a deal team rather than in textbook definitions.

DACH interviews add their own layer. Many targets in the region are Mittelstand companies that report under German commercial law (HGB) rather than IFRS, private equity activity is heavily focused on mid-market buyouts, and instruments such as the Schuldschein loan are part of the local debt landscape. Preparation built only on US material tends to miss these points, which is why the modules are written with the DACH market in mind.

How the technical track is structured

The track follows the path from reading financial statements to building a full model. Each module is split into thematic sections, and each card is tagged by difficulty so you can start with the basics and work up to the questions that come up in later rounds.

Every card follows the same format: a question in the wording you are likely to hear, a structured answer, a rule of thumb you can recall under pressure, and where it helps, the linkage to other topics. You can see the format on the card What are the three financial statements, and what does each show?, which opens the Accounting module.

The six modules in detail

Module I: Accounting (200 flashcards)

Accounting is the foundation for everything else in the track. If you cannot move a transaction through the income statement, balance sheet and cash flow statement, valuation and LBO questions quickly fall apart. The module starts with three-statement mechanics and linkages and moves into the topics interviewers use to separate prepared candidates from the rest.

• How net income links the income statement to retained earnings and to the indirect cash flow statement
• Classic walk-throughs such as a change in depreciation, inventory, debt or deferred revenue
• Working capital, accruals, deferred taxes and leases
• The HGB–IFRS bridge, for example the different treatment of goodwill: under HGB it is amortised over its useful life, under IFRS it is only tested for impairment

A good first step is the pair three financial statements and the accounting equation. They set up the logic you use in almost every later card.

Module II: Valuation (308 flashcards)

Valuation is the largest module in the track, and for good reason. Questions on how to value a company, why methods produce different results and how to defend a range come up in nearly every technical interview, regardless of division.

• Enterprise Value vs. Equity Value and the bridge between them
• The DCF: unlevered free cash flow, WACC, Terminal Value via perpetuity growth and exit multiple
• Trading Comps and precedent transactions, including multiple selection such as EV/EBITDA and P/E
• The football field and how to explain why the methods land where they do

Module III: Capital Markets (102 flashcards)

This module covers how companies raise money and what the trade-offs are between the options. It matters most if you apply to ECM, DCM or Leveraged Finance, but coverage and M&A interviewers also ask how a deal would be financed.

• Equity capital markets: IPOs, capital increases, pricing and dilution
• Debt capital markets: bonds, loans, ratings and covenants
• Hybrid instruments and convertibles, and how they sit between debt and equity
• Financing instruments common in the DACH market, such as the Schuldschein loan

Module IV: LBO (200 flashcards)

LBO questions test whether you understand how financial sponsors think. The module focuses on Mittelstand buyouts, the part of the private equity market most relevant for DACH deal teams, and goes from the basic logic of leverage to exit defence.

• Why sponsors use leverage and what makes a good LBO candidate
• Sources and uses, debt structure and the debt schedule
• Returns: IRR and money multiple, and the main value-creation levers
• Paper LBOs you can work through without Excel, as asked in many interviews

Module V: M&A Accounting (150 flashcards)

Once you can value a single company, the next question is what happens when two companies combine. This module covers the accounting side of transactions, which is often where strong candidates set themselves apart.

• Purchase price allocation, goodwill and write-ups
• Consolidation and how the combined balance sheet is built
• Accretion and dilution analysis and the effect of the financing mix
• Transaction effects on deferred taxes and minority interests

Module VI: Financial Modeling (150 flashcards)

Modeling tests are common in later rounds and in private equity processes. This module is about the craft: building a clean model under time pressure, finding errors and presenting the output in a way a senior banker can read quickly.

• Three-statement model build and the order in which to link it
• Circular references, for example interest expense in a debt schedule, and how to handle them
• Debugging: balance checks and typical errors that break a model
• Formatting conventions and presenting results

In which order to study the modules

The modules are numbered for a reason. Each one uses concepts from the ones before it, so the default path is to work through them in order. You can adjust it depending on how much time you have and where you apply.

Example: how a card turns into an interview answer

Knowing the answer on a card is the first step. In the interview you need to deliver it in a structured, spoken form and survive the follow-up. Here is how that looks with one of the most common accounting questions.

A typical follow-up changes one detail: what happens if the asset is written down instead, or if the tax rate is different. If you understand the linkage rather than the memorised numbers, you can answer any variation. That is the logic behind the cards: every solution explains why, not only what.

Expert tips for technical rounds

Answer top-down

Start with a one-sentence answer, then give the structure, then the detail. For example: there are three main valuation methods, intrinsic and two relative ones, then explain each. Interviewers can follow you more easily and can interrupt at the level of detail they care about.

Say your assumptions out loud

If a question is ambiguous, state what you assume, such as a tax rate or whether a transaction is financed with cash or debt. This shows structured thinking and protects you from answering a different question than the one intended.

Link every concept to a deal

Definitions become strong answers when you connect them to a transaction. Instead of only defining WACC, explain which parts move when a company adds leverage and what that does to the valuation.

Practise mental math

Paper LBOs and quick valuation questions require you to calculate without Excel. Round aggressively, keep a clean structure, and check whether your result makes sense before you give it.

Know the local context

For DACH interviews, be ready to mention HGB versus IFRS differences, the role of the Mittelstand in the deal market and local financing instruments. It shows that you prepared for the specific bank and region, not for a generic interview.

Common mistakes

• Skipping accounting. Many candidates jump straight to the DCF and then struggle to explain where free cash flow comes from.
• Mixing up Enterprise Value and Equity Value. Multiples, bridges and per-share values all depend on getting this right.
• Ignoring the balance check. In three-statement questions, if you do not verify that both sides move by the same amount, errors go unnoticed.
• Long, unstructured answers. Talking for three minutes without a clear structure costs more points than a short, precise answer.
• Only reading, never saying. Answers that feel clear in your head often fall apart when spoken. Practise out loud.
• Treating the modeling test as an afterthought. Speed and clean formatting take practice that you cannot catch up on the night before.

Best practices for your preparation

1. Work module by module. Finish the basics of a module before moving on, so you build on stable ground.
2. Answer before you reveal. Formulate your answer, ideally out loud, before you look at the solution. Recognising the right answer is not the same as producing it.
3. Repeat in intervals. Go back to cards you found difficult after a few days instead of repeating them all at once.
4. Explain it to someone. Mock interviews with a friend or study group reveal gaps much faster than silent review.
5. Combine with behavioral prep. Technical strength does not help if the fit part fails. Plan time for the Behavioral track as well.
6. Simulate the real format. Before your interview, answer a mixed set of questions from several modules in one sitting, as you would in a real round.

Which modules matter for which role

All modules are relevant for investment banking, but the emphasis differs by division. The overview below is a qualitative guide for prioritising your time, not a rule every bank follows.

If you are unsure which division you will interview for, follow the default order. Accounting and Valuation are relevant everywhere, and the rest can be adjusted once you know your target.

Flashcards as a prep method: pros and cons

Flashcards are an efficient way to prepare for technical questions, but they work best when you know their limits.

The best results come from combining the cards with spoken practice and at least a few timed modeling exercises before later rounds.

FAQ

Conclusion

Technical questions are where interviews are won or lost, and they are also the part you can prepare most systematically. The technical track takes you from the three statements to the modeling test in six modules that build on each other, with 1,110 flashcards written for the way DACH banks interview.

Start with Accounting, move to Valuation, and add the other modules based on your target division. Answer every card before you reveal the solution, say your answers out loud, and focus on understanding the linkages rather than memorising results. That is what lets you stay calm when the interviewer changes one assumption.