22 questions reported in Centerview interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
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Model builds
Built in the spreadsheet grid
Merger models, accretion/dilution, purchase accounting and deal judgement. 19 questions
Asked in essentially every investment banking interview. Expect follow-ups immediately.
Explain the difference between enterprise value and equity value. Why do we use each, and how do you get from one to the other?
Asked when discussing how a signed deal actually gets to closing.
What is a break fee, and what other deal protections does an acquirer negotiate? Why don't boards simply agree to whatever the buyer asks?
The analysis that determines the ownership split in a stock-for-stock merger.
Two companies are merging in an all-stock deal with no premium. How do you determine the ownership split, and what is contribution analysis?
Asked when discussing precedent transactions or fairness opinions.
What is a control premium and why does it exist? How does it relate to a minority discount, and what determines its size in a given deal?
Asked to test commercial judgement, not modeling ability.
Distinguish cost from revenue synergies. Which do you trust more and why? How should synergies affect the price a buyer is willing to pay?
The standard follow-up to the three-statement walkthrough. Assume a 25% tax rate.
Depreciation increases by $10. Walk me through what happens on all three statements. Use a 25% tax rate and assume nothing else changes.
Bridges accounting and M&A. Expect it in any deal-heavy group.
How is goodwill created in an acquisition? Then walk me through the three statements when $100 of goodwill is written off, assuming a 25% tax rate.
Top-three most asked question in investment banking interviews.
Walk me through a discounted cash flow analysis from start to finish.
Core technical for any M&A or coverage group interview.
Walk me through building a merger model from start to finish.
Tests modeling instinct, which levers actually matter.
You build a DCF and the output looks too high. Which assumptions would you interrogate first, and in what order?
A practical purchase price question that also reveals incentive dynamics.
A target has significant outstanding employee options and RSUs. What happens to them in an acquisition, and how does it affect the purchase price?
The dominant execution risk in large deals, and the first question a merger arb asks.
Two competitors announce a merger. Walk me through the antitrust process and what determines whether it clears.
The core modelling test for investment banking and equity research superdays.
Value the business with a five-year DCF and bridge to an implied share price. Free cash flow for years 1–5 is given. Discount at the WACC using end-of-year convention. Calculate terminal value with…
Standard for M&A groups. The model behind the question every banker is asked.
An acquirer is buying a target in a 50% cash / 50% stock deal. Build the pro forma EPS. The cash portion is funded with new debt at the stated rate; the stock portion is funded by issuing acquirer…
A quantitative follow-up that appears frequently in superdays.
An acquirer's deal is $40m dilutive to net income on a pro forma basis. The acquirer's tax rate is 25%. How much in pre-tax synergies are needed to break even? Then explain how you'd assess whether…
The structuring decision at the heart of every stock deal.
In an all-stock deal, explain the difference between a fixed exchange ratio and a fixed value deal. Who bears the risk in each, and what is a collar for?
Asked in M&A groups and activist defence practices.
A client receives an unsolicited hostile bid. What defensive measures are available, and how would you advise the board to think about them?
The analysis that justifies. Or fails to justify. A control premium.
An acquirer expects $80m of annual run-rate cost synergies, phased over three years, with $120m of one-time costs to achieve. How much are the synergies worth, and how much of that should show up in…
An M&A associate review exercise built around finding linked errors rather than building from a blank page.
A first-year analyst sends you a merger model and draft client page forty minutes before the internal review. Find every issue that can change the recommendation, decide what must be fixed first, and…
Pipeline risk-adjusted valuation, reimbursement and patent cliffs. 2 questions
A sell-side healthcare process can test whether you know how a regulatory condition changes both price and deal certainty.
A biotech with one oncology drug is being sold after accelerated approval. The confirmatory trial reads out in 18 months, and the buyer wants to pay a headline price based on full approval. How would…
Healthcare coverage and biotech-focused funds start here.
A clinical-stage biotech has no revenue and one drug in Phase II. How do you value it?
Recurring revenue quality, Rule of 40, retention and growth-adjusted multiples. 1 question
A senior coverage interviewer uses this scenario to test whether you can turn customer concentration and AI economics into a defensible valuation recommendation.
An AI-infrastructure vendor has $80m of ARR, 60% growth and an 85% gross margin. Its largest customer supplies 45% of ARR under a one-year contract, and that customer is building a competing internal…
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Centerview.