BIWS 400 Questions - All Technicals
with correct answers 2025
You'vevnevervworkedvinvfinancevbefore.vHowvmuchvdovyouvknowvaboutvwhatvbankersvactuallyvdo?v
-vcorrect-answersv-I'vevdonevavlotvofvresearchvonvmyvown.
Basedvonvthat,vIvknowvthatvbankersvadvisevcompaniesvonvtransactionsv-
vbuyingvandvsellingvothervcompanies,vandvraisingvcapital.vTheyvarev"agents"vthatvconnectvavcompa
nyvwithvthevappropriatevbuyer,vseller,vorvinvestor.
Thevday-to-
dayvworkvinvolvesvcreatingvpresentations,vfinancialvanalysisvandvmarketingvmaterialsvsuchvasvExec
utivevSummaries.
Let'svsayvI'mvworkingvonvanvIPOvforvavclient.vCanvyouvdescribevbrieflyvwhatvIvwouldvdo?v-vcorrect-
answersv-Youvmeetvwithvthevclientvandvgathervbasicvinformationv-
vsuchvasvtheirvfinancialvdetails,vanvindustryvoverview,vandvwhovtheirvcustomersvare.vYouvmeetvwithv
othervbankersvandvthevlawyersvtovdraftvthevS-1vregistrationvstatementv-
vwhichvdescribesvthevcompany'svbusinessvandvmarketsvitvtovinvestors.vYouvreceivevsomevcomment
svfromvthevSECvandvkeepvrevisingvthevdocumentvuntilvit'svacceptable.vYouvspendvavfewvweeksvgoingv
onvav"roadvshow"vwherevyouvpresentvthevcompanyvtovinstitutionalvinvestorsvandvconvincevthemvto
vinvest.vThevcompanyvbeginsvtradingvonvanvexchangevoncevyou'vevraisedvthevcapitalvfromvinvestors
.
,Howvmuchvdovyouvknowvaboutvthevlifestylevinvthisvindustry?vDovyouvknowvhowvmanyvhoursvyou'rev
goingvtovworkveachvweek?v-vcorrect-answersv-
I'vevdonevmyvhomeworkvandvIvunderstandvit'svgoingvtovbevanv80-
100vhourvpervweekvjobvbutvI'mvnotvafraidvofvthat.
Canvyouvtellvmevaboutvthevdifferentvproductvandvindustryvgroupsvatvourvbank?v-vcorrect-answersv-
Beingvavbulgevbracketvbank,vCreditvSuissevoffersvprettyvmuchvanythingvavclientvcouldvaskvfor.vRestru
cturing,vM&A,vLevFin,vDebtvandvEquityvCapitalvMarkets.vSomevspecificvgroupsv-
vFinancialvSponsors,vECMS,vDCMS,vUltravHighvNetvWorthv(UHNW).vSomevspecificvindustriesv-
vhealthcare,vindustrialsv(myvpreviousvinterviewer),vfinancialvinstitutions,vetc.
What'svinvavpitchvbook?v-vcorrect-answersv-Itvdepends.
1.vBankv"credentials"v(similarvdealsvthey'vevdonevtov"prove"vtheirvexpertise).
2.vSummaryvofvavcompany'svoptionsv("strategicvalternatives"vinvbanker-speak).
3.vValuationvandvappropriatevfinancialvmodelsv(forvexample,vifvyou'revpitchingvforvanvIPOvyouvmigh
tvshowvwherevthevIPOvproceedsvwouldvgo).
4.vPotentialvacquisitionvtargetsv(buy-sidevM&Avdeal)vorvpotentialvbuyersv(sell-
sidevM&Avdeal).vThisvisvnotvapplicablevforvequity/debtvdeals.
5.vSummaryvandvkeyvrecommendations.
Howvdovcompaniesvselectvthevbankersvtheyvworkvwith?v-vcorrect-answersv-
Usuallyvbasedvonvrelationships.vWhenvitvcomesvtimevtovdovavdeal,vthevcompanyvcallsvdifferentvban
ksvitvhasvspokenvwithvandvasksvthemvtov"pitch"vforvthevbusiness.vThisvisvcalledvav"bake-
off"vandvthevcompanyvselectsvthev"winner"vafterward
Walkvmevthroughvthevprocessvofvavtypicalvsell-sidevM&Avdeal.v-vcorrect-answersv-
1.vMeetvwithvcompany,vcreatevinitialvmarketingvmaterialsvlikevthevExecutivevSummaryvandvOffering
vMemorandumv(OM),vandvdecidevonvpotentialvbuyers.
2.vSendvoutvExecutivevSummaryvtovpotentialvbuyersvtovgaugevinterest.
,3.vSendvNDAsv(Non-
DisclosurevAgreements)vtovinterestedvbuyersvalongvwithvmorevdetailedvinformationvlikevthevOfferi
ngvMemorandum,vandvrespondvtovanyvfollow-upvduevdiligencevrequestsvfromvthevbuyers.
4.vSetvav"bidvdeadline"vandvsolicitvwrittenvIndicationsvofvInterestv(IOIs)vfromvbuyers.
5.vSelectvwhichvbuyersvadvancevtovthevnextvround.
6.vContinuevrespondingvtovinformationvrequestsvandvsettingvupvduevdiligencevmeetingsvbetweenvt
hevcompanyvandvpotentialvbuyers.
7.vSetvanothervbidvdeadlinevandvpickvthev"winner."
8.vNegotiatevtermsvofvthevPurchasevAgreementvwithvthevwinnervandvannouncevthevdeal.
Walkvmevthroughvthevprocessvofvavtypicalvbuy-sidevM&Avdeal.v-vcorrect-answersv-
1.vSpendvavlotvofvtimevupfrontvdoingvresearchvonvdozensvorvhundredsvofvpotentialvacquisitionvtarge
ts,vandvgovthroughvmultiplevcyclesvofvselectionvandvfilteringvwithvthevcompanyvyou'revrepresenting
.
2.vNarrowvdownvthevlistvbasedvonvtheirvfeedbackvandvdecidevwhichvonesvtovapproach.
3.vConductvmeetingsvandvgaugevthevreceptivityvofveachvpotentialvseller.
4.vAsvdiscussionsvwithvthevmostvlikelyvsellervbecomevmorevserious,vconductvmorevin-
depthvduevdiligencevandvfigurevoutvyourvoffervprice.
5.vNegotiatevthevpricevandvkeyvtermsvofvthevPurchasevAgreementvandvthenvannouncevthevtransacti
on.
Walkvmevthroughvavdebtvissuancevdeal.v-vcorrect-answersv-
1.vMeetvwithvthevclientvandvgathervbasicvfinancial,vindustry,vandvcustomervinformation.
2.vWorkvcloselyvwithvDCMv/vLeveragedvFinancevtovdevelopvavdebtvfinancingvorvLBOvmodelvforvthevc
ompanyvandvfigurevoutvwhatvkindvofvleverage,vcoveragevratios,vandvcovenantsvmightvbevappropriat
e.
3.vCreatevanvinvestorvmemorandumvdescribingvallvofvthis.
4.vGovoutvtovpotentialvdebtvinvestorsvandvwinvcommitmentsvfromvthemvtovfinancevthevdeal.
, HowvarevEquityvCapitalvMarketsv(ECM)vandvDebtvCapitalvMarketsv(DCM)vdifferentvfromvM&Avorvin
dustryvgroups?v-vcorrect-answersv-ECMvandvDCMvarevbothvmorev"markets-
based"vthanvM&A.vInvM&Avyourvjobvisvtovexecutevsell-sidevandvbuy-
sidevtransactions,vwhereasvinvECM/DCMvmostvofvyourvtasksvarevrelatedvtovstayingvonvtopvofvthevm
arket,vfollowingvcurrentvtrends,vandvmakingvrecommendationsvtovindustryvandvproductvgroupsvfor
vclientsvandvpitchvbooks.
InvECM/DCMvyouvgovmorevin-
depthvonvcertainvpartsvofvthevdealvprocess,vbutvyouvdon'tvgetvasvbroadvavviewvasvyouvmightvinvothe
rvgroups.
What'svthevdifferencevbetweenvDCMvandvLeveragedvFinance?v-vcorrect-answersv-
They'revsimilarvandvtherevisvsomevoverlapvbutvLeveragedvFinancevisvmorev"modeling-
intensive"vandvdoesvmorevofvthevdealvexecutionvwithvindustryvandvM&AvgroupsvonvLBOsvandvdebtv
financings.vDCM,vbyvcontrast,visvmorevcloselyvtiedvtovthevmarketsvandvtracksvtrendsvandvrelevantvd
ata.
Explainvwhatvavdivestiturevis.v-vcorrect-answersv-
It'svwhenvavcompanyvdecidesvtovsellvoffvavspecificvdivisionvrathervthanvsellvtheventirevcompany.vThev
processvisvveryvsimilarvtovthevsell-
sidevM&Avprocess,vbutvitvtendsvtovbev"messier"vbecausevyou'revdealingvwithvavpartvofvonevcompan
yvrathervthanvthevwholevthing.vCreatingvav"standalonevoperatingvmodel"vforvthevparticularvdivision
vthey'revsellingvisvextremelyvimportant,vandvthevtransactionvstructurevandvvaluationvarevmorevcom
plexvthanvtheyvwouldvbevforvav"plain-vanilla"vM&Avdeal.
Imaginevyouvwantvtovdraftvav1-slidevcompanyvprofilevforvanvinvestor.vWhatvwouldvyouvputvthere?v-
vcorrect-answersv-
"Putvthevnamevofvthevcompanyvinvthevheader,vthenvdividevthevslidevintov4vequalvparts.vThevtop-
leftvisvforvthevbusinessvdescription,vheadquarters,vandvkeyvexecutives.vPutvavstockvchartvandvthevke
yvhistoricalvandvprojectedvfinancialvmetricsvandvmultiplesvonvthevtopvright.vThevbottomvleftvcanvhav
evdescriptionsvofvproductsvandvservices,vandvthevbottomvrightvshouldvhavevkeyvgeographiesvwithvav
color-codedvmapvtovmakevitvlookvpretty."
Let'svsayvyouvhadv$10vmillionvtovinvestvinvanything.vWhatvwouldvyouvdovwithvit?v-vcorrect-answersv-
Itvdepends.v
with correct answers 2025
You'vevnevervworkedvinvfinancevbefore.vHowvmuchvdovyouvknowvaboutvwhatvbankersvactuallyvdo?v
-vcorrect-answersv-I'vevdonevavlotvofvresearchvonvmyvown.
Basedvonvthat,vIvknowvthatvbankersvadvisevcompaniesvonvtransactionsv-
vbuyingvandvsellingvothervcompanies,vandvraisingvcapital.vTheyvarev"agents"vthatvconnectvavcompa
nyvwithvthevappropriatevbuyer,vseller,vorvinvestor.
Thevday-to-
dayvworkvinvolvesvcreatingvpresentations,vfinancialvanalysisvandvmarketingvmaterialsvsuchvasvExec
utivevSummaries.
Let'svsayvI'mvworkingvonvanvIPOvforvavclient.vCanvyouvdescribevbrieflyvwhatvIvwouldvdo?v-vcorrect-
answersv-Youvmeetvwithvthevclientvandvgathervbasicvinformationv-
vsuchvasvtheirvfinancialvdetails,vanvindustryvoverview,vandvwhovtheirvcustomersvare.vYouvmeetvwithv
othervbankersvandvthevlawyersvtovdraftvthevS-1vregistrationvstatementv-
vwhichvdescribesvthevcompany'svbusinessvandvmarketsvitvtovinvestors.vYouvreceivevsomevcomment
svfromvthevSECvandvkeepvrevisingvthevdocumentvuntilvit'svacceptable.vYouvspendvavfewvweeksvgoingv
onvav"roadvshow"vwherevyouvpresentvthevcompanyvtovinstitutionalvinvestorsvandvconvincevthemvto
vinvest.vThevcompanyvbeginsvtradingvonvanvexchangevoncevyou'vevraisedvthevcapitalvfromvinvestors
.
,Howvmuchvdovyouvknowvaboutvthevlifestylevinvthisvindustry?vDovyouvknowvhowvmanyvhoursvyou'rev
goingvtovworkveachvweek?v-vcorrect-answersv-
I'vevdonevmyvhomeworkvandvIvunderstandvit'svgoingvtovbevanv80-
100vhourvpervweekvjobvbutvI'mvnotvafraidvofvthat.
Canvyouvtellvmevaboutvthevdifferentvproductvandvindustryvgroupsvatvourvbank?v-vcorrect-answersv-
Beingvavbulgevbracketvbank,vCreditvSuissevoffersvprettyvmuchvanythingvavclientvcouldvaskvfor.vRestru
cturing,vM&A,vLevFin,vDebtvandvEquityvCapitalvMarkets.vSomevspecificvgroupsv-
vFinancialvSponsors,vECMS,vDCMS,vUltravHighvNetvWorthv(UHNW).vSomevspecificvindustriesv-
vhealthcare,vindustrialsv(myvpreviousvinterviewer),vfinancialvinstitutions,vetc.
What'svinvavpitchvbook?v-vcorrect-answersv-Itvdepends.
1.vBankv"credentials"v(similarvdealsvthey'vevdonevtov"prove"vtheirvexpertise).
2.vSummaryvofvavcompany'svoptionsv("strategicvalternatives"vinvbanker-speak).
3.vValuationvandvappropriatevfinancialvmodelsv(forvexample,vifvyou'revpitchingvforvanvIPOvyouvmigh
tvshowvwherevthevIPOvproceedsvwouldvgo).
4.vPotentialvacquisitionvtargetsv(buy-sidevM&Avdeal)vorvpotentialvbuyersv(sell-
sidevM&Avdeal).vThisvisvnotvapplicablevforvequity/debtvdeals.
5.vSummaryvandvkeyvrecommendations.
Howvdovcompaniesvselectvthevbankersvtheyvworkvwith?v-vcorrect-answersv-
Usuallyvbasedvonvrelationships.vWhenvitvcomesvtimevtovdovavdeal,vthevcompanyvcallsvdifferentvban
ksvitvhasvspokenvwithvandvasksvthemvtov"pitch"vforvthevbusiness.vThisvisvcalledvav"bake-
off"vandvthevcompanyvselectsvthev"winner"vafterward
Walkvmevthroughvthevprocessvofvavtypicalvsell-sidevM&Avdeal.v-vcorrect-answersv-
1.vMeetvwithvcompany,vcreatevinitialvmarketingvmaterialsvlikevthevExecutivevSummaryvandvOffering
vMemorandumv(OM),vandvdecidevonvpotentialvbuyers.
2.vSendvoutvExecutivevSummaryvtovpotentialvbuyersvtovgaugevinterest.
,3.vSendvNDAsv(Non-
DisclosurevAgreements)vtovinterestedvbuyersvalongvwithvmorevdetailedvinformationvlikevthevOfferi
ngvMemorandum,vandvrespondvtovanyvfollow-upvduevdiligencevrequestsvfromvthevbuyers.
4.vSetvav"bidvdeadline"vandvsolicitvwrittenvIndicationsvofvInterestv(IOIs)vfromvbuyers.
5.vSelectvwhichvbuyersvadvancevtovthevnextvround.
6.vContinuevrespondingvtovinformationvrequestsvandvsettingvupvduevdiligencevmeetingsvbetweenvt
hevcompanyvandvpotentialvbuyers.
7.vSetvanothervbidvdeadlinevandvpickvthev"winner."
8.vNegotiatevtermsvofvthevPurchasevAgreementvwithvthevwinnervandvannouncevthevdeal.
Walkvmevthroughvthevprocessvofvavtypicalvbuy-sidevM&Avdeal.v-vcorrect-answersv-
1.vSpendvavlotvofvtimevupfrontvdoingvresearchvonvdozensvorvhundredsvofvpotentialvacquisitionvtarge
ts,vandvgovthroughvmultiplevcyclesvofvselectionvandvfilteringvwithvthevcompanyvyou'revrepresenting
.
2.vNarrowvdownvthevlistvbasedvonvtheirvfeedbackvandvdecidevwhichvonesvtovapproach.
3.vConductvmeetingsvandvgaugevthevreceptivityvofveachvpotentialvseller.
4.vAsvdiscussionsvwithvthevmostvlikelyvsellervbecomevmorevserious,vconductvmorevin-
depthvduevdiligencevandvfigurevoutvyourvoffervprice.
5.vNegotiatevthevpricevandvkeyvtermsvofvthevPurchasevAgreementvandvthenvannouncevthevtransacti
on.
Walkvmevthroughvavdebtvissuancevdeal.v-vcorrect-answersv-
1.vMeetvwithvthevclientvandvgathervbasicvfinancial,vindustry,vandvcustomervinformation.
2.vWorkvcloselyvwithvDCMv/vLeveragedvFinancevtovdevelopvavdebtvfinancingvorvLBOvmodelvforvthevc
ompanyvandvfigurevoutvwhatvkindvofvleverage,vcoveragevratios,vandvcovenantsvmightvbevappropriat
e.
3.vCreatevanvinvestorvmemorandumvdescribingvallvofvthis.
4.vGovoutvtovpotentialvdebtvinvestorsvandvwinvcommitmentsvfromvthemvtovfinancevthevdeal.
, HowvarevEquityvCapitalvMarketsv(ECM)vandvDebtvCapitalvMarketsv(DCM)vdifferentvfromvM&Avorvin
dustryvgroups?v-vcorrect-answersv-ECMvandvDCMvarevbothvmorev"markets-
based"vthanvM&A.vInvM&Avyourvjobvisvtovexecutevsell-sidevandvbuy-
sidevtransactions,vwhereasvinvECM/DCMvmostvofvyourvtasksvarevrelatedvtovstayingvonvtopvofvthevm
arket,vfollowingvcurrentvtrends,vandvmakingvrecommendationsvtovindustryvandvproductvgroupsvfor
vclientsvandvpitchvbooks.
InvECM/DCMvyouvgovmorevin-
depthvonvcertainvpartsvofvthevdealvprocess,vbutvyouvdon'tvgetvasvbroadvavviewvasvyouvmightvinvothe
rvgroups.
What'svthevdifferencevbetweenvDCMvandvLeveragedvFinance?v-vcorrect-answersv-
They'revsimilarvandvtherevisvsomevoverlapvbutvLeveragedvFinancevisvmorev"modeling-
intensive"vandvdoesvmorevofvthevdealvexecutionvwithvindustryvandvM&AvgroupsvonvLBOsvandvdebtv
financings.vDCM,vbyvcontrast,visvmorevcloselyvtiedvtovthevmarketsvandvtracksvtrendsvandvrelevantvd
ata.
Explainvwhatvavdivestiturevis.v-vcorrect-answersv-
It'svwhenvavcompanyvdecidesvtovsellvoffvavspecificvdivisionvrathervthanvsellvtheventirevcompany.vThev
processvisvveryvsimilarvtovthevsell-
sidevM&Avprocess,vbutvitvtendsvtovbev"messier"vbecausevyou'revdealingvwithvavpartvofvonevcompan
yvrathervthanvthevwholevthing.vCreatingvav"standalonevoperatingvmodel"vforvthevparticularvdivision
vthey'revsellingvisvextremelyvimportant,vandvthevtransactionvstructurevandvvaluationvarevmorevcom
plexvthanvtheyvwouldvbevforvav"plain-vanilla"vM&Avdeal.
Imaginevyouvwantvtovdraftvav1-slidevcompanyvprofilevforvanvinvestor.vWhatvwouldvyouvputvthere?v-
vcorrect-answersv-
"Putvthevnamevofvthevcompanyvinvthevheader,vthenvdividevthevslidevintov4vequalvparts.vThevtop-
leftvisvforvthevbusinessvdescription,vheadquarters,vandvkeyvexecutives.vPutvavstockvchartvandvthevke
yvhistoricalvandvprojectedvfinancialvmetricsvandvmultiplesvonvthevtopvright.vThevbottomvleftvcanvhav
evdescriptionsvofvproductsvandvservices,vandvthevbottomvrightvshouldvhavevkeyvgeographiesvwithvav
color-codedvmapvtovmakevitvlookvpretty."
Let'svsayvyouvhadv$10vmillionvtovinvestvinvanything.vWhatvwouldvyouvdovwithvit?v-vcorrect-answersv-
Itvdepends.v
