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Precedent Transactions interview questions

2 precedent transactions questions of the kind asked in investment banking interviews. Each carries a model answer, the concepts a complete response must hit, and graded feedback on your own attempt.

1.Control Premium and Minority Discount

Medium

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?

Commonly asked at Evercore, Lazard, Centerview~8 min
Model answer & graded attempt

2.Premiums Paid Analysis

Medium

One of the four analyses in every fairness opinion.

Walk me through a premiums paid analysis. What are its weaknesses compared to precedent transactions?

Commonly asked at Evercore, Lazard, Houlihan Lokey~9 min
Model answer & graded attempt

Practise these under interview conditions.

Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.

Firm names indicate where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with the firms named.

Precedent Transactions interview questions · Prepalyst