Investment Banking Interview in Madrid

Free sample from the Deskcraft question bank

Investment banking interviews in Madrid are held in English and test the same as London or New York. This guide walks the technicals and fit with a real sample from the Deskcraft bank, with model answers.

1. Walk me through a trading comparables analysis.

Model answer

Select a peer set of similar public companies by industry, size, growth and margins, pull their market and financial data, and compute multiples such as EV/EBITDA, EV/revenue and P/E. Take the median and quartiles and apply them to the target's metric to imply a value, adjusting for differences in growth and profitability. It reflects current market sentiment.

2. Walk me through the sell-side M&A process.

Model answer

Preparation of financials, the CIM and a data room; buyer outreach with a teaser and NDA; first-round indications of interest; management presentations and due diligence for selected buyers; final bids with a marked-up purchase agreement; negotiation and signing; then regulatory approval and closing. The banker runs a competitive auction to maximize price and certainty.

3. Walk me through the three financial statements and how they connect.

Model answer

The income statement shows profitability over a period, ending in net income. The cash flow statement starts from net income, adds back non-cash items (D&A, SBC), adjusts for changes in working capital, then shows investing and financing flows to reach the change in cash. The balance sheet is a point-in-time snapshot: net income flows into retained earnings, the ending cash from the CFS becomes cash on the BS, and PP&E links via capex and depreciation. Assets = liabilities + equity must always hold.

4. What are the three financial statements and what does each show?

Model answer

The income statement shows profitability over a period (revenue down to net income). The balance sheet shows financial position at a point in time (assets = liabilities + equity). The cash flow statement shows actual cash movement over a period across operating, investing and financing, reconciling net income to the change in cash. They link: net income flows to the CFS and to retained earnings, and ending cash on the CFS is the cash line on the BS.