What's a Recent Deal You Followed?

Three things: (1) Do you actually read about markets, or did you cram a list? (2) Can you explain why a deal happened — the strategic and financial logic — not just what happened? (3) Can you form and defend an opinion? Reciting a press release is a fail; connecting the rationale to valuation and offering a view is a pass. It also doubles as a 'why banking' signal: caring about deals shows the interest is real.

Cover these in order: 1) The deal — '[Acquirer] is acquiring [Target] for ~$Xbn, announced [month].' 2) Rationale — why the acquirer did it (market expansion, vertical integration, synergies, defensive consolidation, acquiring tech/talent). 3) Valuation — the price and the multiple (e.g., '~14x EV/EBITDA, a ~25% premium to the unaffected price'). 4) Financing — cash, stock, or debt, and what that implies. 5) Your view — was the premium justified? Is it accretive or dilutive? Any regulatory/antitrust risk?

Choose a deal that is: recent (last 6-12 months), large/well-covered (so info is available and the interviewer knows it), and ideally relevant to the group or bank you're interviewing with — pitching a tech deal to a tech team, or a deal the bank advised on, shows preparation. Avoid deals so old they feel stale, deals you only half-understand, or anything you can't discuss past the headline.

Elevate the answer with real banking concepts: the multiple paid vs. precedent transactions, the premium to the unaffected share price, whether it's accretive/dilutive in a stock deal, the pro forma leverage if debt-financed, and regulatory risk (antitrust review, likelihood of closing). Even one or two of these moves you from 'reads the news' to 'thinks like a banker.'

Expect: 'Was it a good deal?', 'Why did the stock move on the announcement?', 'How would you value the target?', 'Cash or stock — and why does it matter?', 'Do you think it closes?' Have a defensible opinion. If they push back, it's fine to engage — they want to see you reason, not just agree. Prepare 2-3 deals so you're not stuck if they've already discussed your first pick.