Baird IB Interview Questions

Answer in three slots, in this order. Business: name the company and its sector, and say what it does in one line. Financials: give its approximate market cap (the value of all its shares) and its valuation multiples, such as EV/EBITDA and P/E, and compare them with its peers. Interest: give two reasons you follow it. One ties it to an M&A deal (a merger or acquisition). The other ties it to a macro trend.

Run a targeted auction: a sale process with a short list of about 5 to 15 buyers who have the money ready and can close fast. Push for all-cash terms at closing. He values liquidity over the top price, so he should accept a somewhat lower headline price in exchange for speed and certainty of getting paid.

Name the company and a specific target, then give the reason in one line: the target fills a gap in the buyer's strategy, and the numbers work. Back it up with strategic fit, synergies (cost savings or extra revenue the two companies can get together but not apart), whether the buyer can afford the price, and the main risk. Pick a company you actually follow. The example below shows the structure.

Answer in four slots and stop. First, the Headline: one thing happening now, such as a move in interest rates, credit (borrowing) conditions, or stock prices. Second, the Banking implication: how that changes deal or fundraising activity, such as M&A (mergers and acquisitions, where one company buys another) or IPOs (initial public offerings, when a private company first sells shares to the public). Third, the Sector example: the one industry where you see it. Fourth, the Question: what you are still watching and are not yet sure about. The sample below is a template built on a hypothetical company. Before the interview, swap in what is actually happening that week.

Equity value is the current share price times fully diluted shares outstanding. Fully diluted means basic shares plus the extra shares that would be created by in-the-money options, warrants and convertible securities. Enterprise value starts from equity value, adds debt, preferred stock and minority interest, and subtracts cash and cash equivalents. The bridge takes you from the value of what the common shareholders own to the value of the whole operating business, whoever funded it.