5 questions reported in PwC Deals interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Merger models, accretion/dilution, purchase accounting and deal judgement. 4 questions
The counterpart to the deferred tax asset question, and more commonly asked.
What creates a deferred tax liability? Give the most common cause and explain why a DTL can grow indefinitely without ever being paid.
The step candidates skip in the merger model walkthrough. And the one that has to balance.
Walk me through constructing the pro forma balance sheet at close in an acquisition. What are the adjustments, and how do you make it balance?
The purchase price adjustment that gets negotiated after the headline number is agreed.
A deal is signed on a cash-free, debt-free basis with a normalised working capital target. What does that mean, and why is the target contested?
A technical differentiator. Most candidates cannot explain the DTL.
Walk me through purchase price allocation in an acquisition. Why does a deferred tax liability get created, and what effect does it have on goodwill?
LBO modelling, leverage capacity, value creation plans and exit paths. 1 question
Every buyout runs one, and associates are expected to interrogate it.
A seller presents $50m of "Adjusted EBITDA". What does a quality of earnings analysis look for, and which addbacks would you challenge?
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 PwC Deals.