investment banking interview preparation
an investment banking interview in the DACH region is not a knowledge quiz but a stress test under time pressure. you'll be grilled on valuation, accounting and LBO mechanics, have to solve brainteasers and, at the same time, calmly explain why you of all people belong on the deal team. this page shows you what is really asked in frankfurt, munich and zurich – and how to prepare for it in a structured way, instead of aimlessly clicking through old question lists.
what to expect in an IB interview
in the DACH region the process usually runs over several rounds. it starts with an HR or first-round conversation: motivation, CV, a few gentle technical questions. then come the technical rounds with analysts and associates – this is where it gets concrete and fast. it often ends with a superday or assessment center featuring several back-to-back conversations, sometimes including a case study or a modeling test.
the key point: banks don't expect perfect answers, but a clean structure of thought. anyone who jumps straight to numbers on a valuation question, without explaining the approach, loses. anyone who calmly outlines the path – “I would start with the three standard methods: DCF, trading comps, transaction comps” – earns trust, even if a number is occasionally off.
the technical topics
the technical part covers four core areas. you must not only know them but be able to explain them under pressure – ideally with a concrete example.
valuation & DCF
the most common opening question of all: “walk me through a DCF.” you should be able to fluently explain free cash flows, the WACC as the discount rate, the terminal value and the bridge from enterprise value to equity value. we go deeper in our hub on DCF interview questions.
LBO & modeling
central for private-equity-adjacent banks and for PE recruiting: how a leveraged buyout generates returns, and the role of leverage, EBITDA growth and multiple expansion. we practice the mechanics in the hub on LBO modeling interview questions.
accounting
the foundation for everything else. the classic test question is linking the income statement, balance sheet and cash flow statement – there's a worked example on this further down. in the DACH region it's worth looking at HGB alongside IFRS, because German Mittelstand companies often report under HGB.
M&A and capital markets
accretion/dilution in acquisitions, synergies, deal structures and the process of an IPO or a bond issuance. this is where it shows whether you understand what the bank actually does.
behavioral & fit in the DACH region
the fit part is underrated. “why investment banking”, “why this bank”, “tell me about a situation where you delivered under pressure” – these questions decide the offer more often than a botched formula. DACH banks in particular want to see that you know the reality of the work and aren't just chasing prestige. how to structure convincing, honest answers is shown in the hub on behavioral interview questions.
preparation by target group
the level of expectation depends on what you're applying for. for an internship, a clean understanding of the fundamentals and genuine interest is enough. at the analyst level, the technical depth is significantly higher – here you have to master modeling logic and valuation details confidently. plan your preparation accordingly: not everyone needs the same level.
example questions with solutions
“walk me through a DCF.”
solution: in a DCF I calculate the company value as the present value of future free cash flows. first, I project the unlevered free cash flows for five to ten years – that is EBIT after tax, plus depreciation, minus capital expenditure, minus the change in working capital. second, I discount these cash flows with the WACC, the weighted average cost of capital from equity and debt.
third, I determine the terminal value – either via the Gordon growth method (last cash flow × (1+g) / (WACC − g)) or via an exit multiple. I also discount the terminal value back to today. the sum of all present values gives the enterprise value. from this I subtract net debt and thus arrive at the equity value, i.e. the value for the equity holders.
“depreciation increases by 10. what happens to the three financial statements?”
solution: I assume a tax rate of 40%. on the income statement, 10 more in depreciation lowers pre-tax income by 10, the tax saving is 4, so net income falls by 6.
on the cash flow statement, operating cash flow starts with net income now lower by 6, but I add back the 10 in depreciation as a non-cash expense. so the cash balance rises by 4 net (the tax saving).
on the balance sheet: cash +4, PP&E −10 (from the depreciation), so the asset side is −6. on the liabilities side, equity falls by 6 via retained earnings. the balance sheet balances – that's the proof the logic holds.
“why investment banking?”
solution: avoid clichés like “I like challenges”. structure the answer around three credible pillars: first, the steep learning curve – you see early on how large transactions are structured. second, the connection between analytical work and real corporate decisions. third, a concrete reference: a deal, an internship or a lecture that sparked your interest.
the key is the concrete anchor. “I was fascinated by X's takeover of Y because ...” is ten times stronger than any general enthusiasm. and be honest about the working hours – banks value candidates who know what they're getting into.
how to prepare in a structured way
aimlessly clicking through old question lists doesn't work. a system is better: work through the technical modules in the right order (first accounting, then valuation, then LBO and M&A), practice with flashcards and spaced repetition, and write out your behavioral answers before you say them out loud. that's exactly what the platform from haus of deal is built for – 1,200+ flashcards across seven modules, each with a solution and in three difficulty levels, aligned to the DACH recruiting cycle. back to the home page.
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frequently asked questions about IB interview preparation
realistically four to eight weeks with consistent preparation alongside studies or a job. the technical fundamentals (accounting, DCF, LBO) take up most of the time because they build on each other. behavioral answers can be structured faster, but need to be practiced out loud. anyone who only starts two days before rarely makes it through the technical round.
the three classics are accounting (linking the three financial statements), valuation (DCF, trading & transaction comparables) and LBO (returns mechanics). on top of that come M&A questions (accretion/dilution), one or two brainteasers and always the behavioral part – above all "why investment banking" and "why this bank".
no. many candidates fail not on the technicals but on the fit part. in frankfurt and munich especially, banks want to see that you know what you're getting into – the working hours, the deal teams, the culture. technicals get you in the door, behavioral often decides the offer.
helpful, but not essential. career changers from law, engineering or the natural sciences get offers too – if they have the technical fundamentals down cleanly. that's exactly what structured flashcards with solutions are for: they close the gap without you needing a second degree.
both. many DACH interviews are conducted in German, but technical terms often come up in English ("walk me through a DCF"). you should be able to explain the concepts in both languages. haus of deal is designed in German but keeps the established English technical terms – exactly as they come up in a real interview.
on a superday you have several conversations back to back – usually with analysts, associates and a VP or director, sometimes supplemented by a case study or a modeling test. each round mixes technical and behavioral questions. what matters is consistency across the whole day, a calm presence, and being able to recall your core stories and the technical fundamentals at any time.