How much technical knowledge do you actually need for a first-round IB interview?

Hey, great question!

You don’t need to be a modeling expert for the first round, but you should have a solid grasp of the basics. Think of it more as a test of your understanding than your ability to crunch numbers under time pressure. They’ll want to know if you can walk through a DCF, explain how the three financial statements connect, and make sense of valuation multiples like EV/EBITDA. It’s not about getting everything perfect, it’s about showing that you understand the logic behind the concepts and can explain them clearly.

So yes, technical prep matters, but don’t overthink it. Focus on getting the core ideas down and being able to talk about them in a confident way. That’s what really makes a good first impression.

Hope this helps!

Hi,

You don’t need to know everything, but you do need to show that you’ve put in the work. Interviewers aren’t expecting you to be able to build a full DCF model from scratch in Excel — especially in a first-round interview — but they are checking to see that you’ve taken the time to understand the basics and that you’re serious about this path.

At a minimum, you should feel comfortable explaining:

• What the three financial statements are and how they connect
• What Enterprise Value vs Equity Value means (and why it matters)
• The basic valuation methods (like DCF, comparables, and precedent transactions)
• Some simple accounting mechanics (like how depreciation or working capital affects cash flow)

It’s less about memorizing formulas and more about showing that you can think clearly and logically when asked to break things down. If you can walk through a simple concept with confidence and make it sound like you actually understand why it matters, you’ll be in a good spot.

Also — don’t underestimate the value of being calm and coachable. Sometimes an interviewer will ask a slightly tricky technical just to see how you react under pressure, not expecting a perfect answer, but just wanting to see if you can stay composed and reason your way through it.

Bottom line: get your fundamentals down, be honest about what you don’t know, and stay calm under pressure. If you can do that, you’ll stand out more than someone who’s just memorized answers.

Best,
Harrshit M Kansal, CFA, MBA

Hey,

Natalie already shared some really great insights!

One thing I’d maybe add: from what I’ve seen with candidates, first-round interviews also sometimes test how well you apply the technicals, not just recite them. For example, they might give you a mini-scenario and ask how a change would flow through the financial statements or affect valuation - so it's good to practice not just definitions, but how to use the concepts.

Also, being able to speak to a recent deal or explain why a multiple is higher in one industry vs. another can really set you apart early on. Nothing crazy in terms of depth, but it shows you're thinking like a banker already.

Hope that gives a bit more color!