- Do we care more about UFCF or LFCF in LBO?
- Goldman Sachs HireVUE Questions – Investment Banking and Early Careers
- How do we decide between using EV/EBITDA vs EV/Sales?
- How do you project expenses?
- How do you project revenue?
- How do you select which companies to use in your comps?
- How does $10 increase in D&A affect UFCF?
- How does $10 increase in debt affect the financial statements?
- How does $10 increase in depreciation affect the financial statements?
- How does raising debt affect a company’s P/E multiple?
- How would you value an apple tree?
- Is negative working capital bad?
- Morgan Stanley HireVue Questions – Investment Banking and Entry Roles
- Should we use forward multiples or trailing multiples?
- Tell me about a recent M&A deal that you followed
- Walk me through a DCF model.
- Walk me through a merger model
- Walk me through an LBO model.
- Walk me through the different acquisition currencies in an M&A deal
- Walk me through the three financial statements.
- What are the different types of debt and how are they different?
- What are the different valuation methodologies?
- What are the exit strategies in an LBO?
- What are the major SEC filings?
- What is non-controlling interest and why do companies have it?
- What is the difference between intangible assets and goodwill?
- What is unlevered free cash flow and how do you calculate it?
- What is WACC and how do you calculate it?
- What is working capital and what are some examples?
- What makes a great LBO candidate?
- Which financial statement is the most important?
- Which valuation method gives the highest valuation?
- Why would a company want to acquire another company?