You understand how a DCF model works, can calculate a leveraged buyout, and know how to estimate company values using multiples – but theory alone isn’t enough in an interview. The next step in your preparation should be to practice applying your knowledge in real interview situations.
When you practice with peers, you can simulate typical interview scenarios. You'll learn how to answer technical questions confidently, manage time pressure, and respond effectively to follow-up questions. Over time, this helps you build a strong presence and get used to expressing your thoughts clearly and in a structured way.
You’ll also benefit from valuable feedback from other peers who are preparing just as seriously. They often spot areas for improvement – such as your answer structure, argumentation, or language clarity.
And it's not just about practicing as a candidate. When you take on the role of the interviewer or observe others, you sharpen your sense for clear communication, analytical thinking, and common response patterns. This also enhances your own performance in interviews.
The best way to prepare for a finance interview is to simulate the conversation as realistically as possible. In real interviews, you often have just 30 to 45 minutes to impress both technically and personally. To prepare for this, your practice sessions should closely mirror the typical flow of an actual interview.
A realistic mock interview begins with a short introduction and a common opening question like “Tell me about yourself” or “Why do you want to work in investment banking?” This is followed by technical questions, such as on valuation methods, balance sheet relationships, or capital structures. The person acting as the interviewer should ask follow-ups, react spontaneously, and vary the level of difficulty.
👉 We’ve selected a few question sets from our Case Library that’ll help you master the technical part of the interview.
This question set helps you go beyond the basics of valuation by comparing key methodologies and exploring when and how to use each one effectively. You’ll review core approaches like DCF, comparables, and precedent transactions, and build on that with LBO analysis, liquidation valuation, and industry-specific multiples.You should expect to spend 30–40 minutes on the full set. Use the model answers to check your reasoning and refine your technical knowledge.
This set of questions is designed to help you master key concepts in Leveraged Buyouts (LBOs). The difficulty progresses from foundational questions about the mechanics of an LBO and the role of leverage, to more advanced concepts like financial statement adjustments, calculating debt capacity, and determining coverage ratios.In total, walking through this set in an interview would take approximately 35 minutes, making up around 70% of a typical 45-minute interview. Below, you’ll find model answers for each question, along with tips for the interviewer on what to look for in candidate responses.
This intermediate-level question set covers key concepts in valuation, with a particular focus on the Discounted Cash Flow (DCF) method. You'll review the main valuation approaches, then work through the full DCF process – from calculating free cash flow to understanding discount rates, terminal value, and capital structure effects.Plan for about 30–35 minutes to complete the set. Model answers are included to help you check your logic and technical knowledge.
In some cases, it’s also useful to include a brief valuation scenario. This might involve a rough company valuation or a basic investment decision. These mini-cases only take a few minutes but are extremely helpful in training your structuring skills, numerical understanding, and ability to argue convincingly.
You’re advising FreshHarvest AG, a fast-growing food distribution company based in Germany. They operate on tight margins, high volumes, and have recently secured several new retail partners. The CFO wants to better understand how working capital decisions and seasonal dynamics impact their free cash flow profile and ultimately their valuation.Your task is to assess how working capital evolves over the forecast period, how payment term shifts affect cash flow, and how to reflect seasonality in a dynamic forecasting model.This case will test your analytical skills, cash flow understanding, and judgment around operational finance levers.
You’re working on a DCF valuation for CloudCore Inc., a publicly traded cloud computing company. You’ve built a standard unlevered DCF model using a WACC of 10% and based on your 5-year forecast, the Enterprise Value (EV) currently comes out to $200 million.
Our client is a European venture capital firm. They are potentially interested in investing into a new restaurant franchise player from Austria, called “VegDigi”. VegDigi has just 3 corporate restaurants in Vienna and no franchisees, yet, but their business model is considered innovative for a restaurant industry, and is based on 3 pillars:Proprietary IT system – VegDigi’s team has developed their own IT system (which manages all restaurant processes – from cashier desk and employee schedules to inventory management and delivery).Innovative vegan menu – VegDigi offers fresh, whole-foods vegan menu, which differentiates itself from the rest of the fast food offering in taste and quality. VegDigi puts a lot of focus on its foods being healthy.Transparent business practices and processes – VegDigi prouds itself to be a transparent business, meaning they publish all their data and talk about their success and failures openly online.Our client has engaged us to help them to determine whether or not to make an investment into the VegDigi.
It’s essential that both roles are taken seriously. The interviewer should run the session professionally, listen carefully, and ask probing questions. As the candidate, you should respond in a structured way, articulate your thoughts clearly, and remain calm – even if you don’t immediately know the answer.
At the end of each session, allow a few minutes for feedback. This helps identify what went well, where uncertainties remain, and what to improve in the next round. Regular practice builds not only technical confidence but also self-assurance for real interviews.
How to Find the Right Practice Partners on PrepLounge
On PrepLounge, you can connect with other candidates preparing for finance interviews via the Meeting Board. You’ll find an overview of upcoming mock interview time slots and can also propose your own sessions.
The easiest way is to post your own session. You can specify your availability, the level of partners you're looking for, and add comments with further details. Alternatively, you can simply accept an existing meeting slot that fits your schedule and prep level.
You can also browse profiles in the Interview Partner Section. Here, you’ll see details like your potential partners’ experience levels, preferred languages, universities, and locations. Use the filter options to narrow your search by prep level or time zone – making it easier to find someone who fits your routine and goals.
Make sure your profile is fully completed. Most importantly, include your university, experience level, and ideally your target firm. You can also add a short headline that outlines your focus, goals, or training preferences. This helps others understand at a glance what you're preparing for and what kind of session you're seeking.
With a bit of initiative and a clear goal, you’ll quickly find motivated partners on PrepLounge to practice with – whether you’re just starting out or days away from your interview.
Best Practices for Your Mock Interview Sessions
To prepare effectively, your sessions should be well structured with clear goals. The following best practices will help you get the most out of your prep:
1) Set a clear goal for each session.
Think in advance about what you want to focus on – technical questions, personal fit, or a specific case. When both partners know the focus, sessions are more targeted and productive.
2) Switch roles regularly.
Alternate between candidate and interviewer roles. This perspective shift helps you think more clearly, ask better questions, and spot common weaknesses. That’s why PrepLounge meetings are scheduled for 90 minutes – allowing a role switch halfway through.
3) Add variety to your sessions.
Practice different question formats: technical questions, stress questions, mini-cases, or personal fit discussions. This mix helps you stay adaptable and prepare for different interview styles.
4) Allow time for feedback and reflection.
Always leave time for mutual feedback. Write down specific points for improvement and focus on them next time. Only through honest feedback can you make real progress.
5) Practice regularly in small sessions.
Rather than long, infrequent sessions, opt for short, consistent practice. This helps you stay in the zone, reinforce knowledge gradually, and build confidence – one of the most important success factors in interviews.
Key Takeaways
Effective preparation for finance interviews goes beyond just studying DCFs, LBOs, or valuation multiples. What really matters is your ability to apply what you’ve learned in real interview scenarios. Practicing with peers helps you simulate interview dynamics, communicate clearly under pressure, and respond to follow-up questions in a structured way. You’ll also receive valuable feedback and develop a confident presence over time.
Since most interviews include a mix of technical questions, personal fit, and occasionally small cases, you should prepare for all formats. Realistic mock interviews with clear role assignments and constructive feedback are especially effective.
On PrepLounge, the Meeting Board helps you connect with suitable partners for your practice sessions. You can join existing meetings or schedule your own. With a complete profile and clear objectives, getting started is easy.
Use additional resources like question sets, mini-cases, and personal uploads to keep your sessions diverse and impactful. Those who practice regularly, explore different question types, and act on feedback will enter interviews with greater confidence and clarity.
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Practice with Coaches
Finance Interview Preparation
Preparing for a finance interview takes more than just technical knowledge. The first step is to build a strong foundation through self-study – covering everything from accounting and valuation to the basics of M&A. Once that’s in place, practicing with peers helps you apply your knowledge in realistic settings and gain confidence in answering typical interview questions.If you want to deepen your preparation and address specific weaknesses, professional coaching can be a valuable next step. Especially in the final phase of your prep, it can help reduce uncertainty, highlight your strengths, and refine your delivery so you leave a strong impression in the interview.
The market-based approach is one of the three primary methods of business valuation, alongside the income approach and the asset-based approach. Instead of projecting future earnings or adjusting balance sheet values, it determines value by comparing a company to similar businesses (Comparable Company Analysis) or transactions (Precedent Transactions Analysis) in the market. The underlying idea is straightforward: the market prices paid for comparable firms provide a benchmark for what the target company should be worth.This approach typically relies on valuation multiples such as EV/EBITDA, P/E, or EV/Sales, derived from public company data or recent M&A deals. By applying these multiples to the target’s financials, analysts can estimate its market value under real-world conditions. The challenge lies in carefully selecting and interpreting the peer group, since differences in growth, risk, and profitability can significantly affect the outcome.
The income approach is one of the three primary asset and company valuation methods. The other two are market approach and asset-based approach. These categories are based on the sources of inputs and valuation processes.Within each of these major categories, there are several valuation methods professionals use. This guide will focus on the income approach, including related sample interview questions.
