Which one has the most impact on free cash flow: revenue up 10, depreciation down 10, or capex down 10?

CapEx down 10 has the greatest impact, boosting FCF by a full 10, since it flows dollar-for-dollar with no tax friction, whereas revenue up 10 only adds 7.50 after tax and depreciation down 10 actually hurts FCF by 2.50.

Company A has 10 shares outstanding, a share price of $25, net income of $10, and a 40% tax rate. Company B has a $150 market cap, net income of $10, and a 40% tax rate. If A buys B and finances the acquisition with 100% stock, is the deal accretive or dilutive?

Accretive. Company A's earnings per share (EPS, net income divided by shares outstanding) rises from $1.00 to $1.25, up 25%. Assuming A pays B's $150 market value with no premium, it issues $150 ÷ $25 = 6 new shares, so the combined $20 of net income is spread over 16 shares. The shortcut: A's stock trades at 25x earnings (its P/E, or price-to-earnings ratio) and it buys B at 15x. Paying with stock for earnings priced below your own P/E is accretive.

Can biotech companies take on debt?

Yes — commercial-stage biotechs with recurring revenue can access conventional debt markets like any corporate borrower, while pre-revenue biotechs are limited to specialized structures like venture debt or convertible notes that compensate lenders for binary risk.

Walk me through the main valuation approaches.

The three main approaches are DCF (intrinsic value from discounted future cash flows), Comparable Companies (relative value from public trading multiples), and Precedent Transactions (relative value from M&A deal multiples, which include a control premium).

10% cost of debt and 10x P/E. How would you raise capital? (Debt is pre-tax.)

Raise debt: a 10x P/E implies a 10% earnings yield, which is the implied cost of equity. The 10% pre-tax cost of debt becomes 7.5% after tax assuming the standard 25% tax rate, so debt is cheaper.

Walk through a DCF and explain what each line item means.

Project unlevered free cash flow (EBIT after taxes plus D&A minus CapEx minus changes in NWC), discount at WACC, add a discounted terminal value to get enterprise value, subtract net debt, and divide by diluted shares for implied price.

What is the IRR for the following transaction? - Buy company at year 0 for 10x EBITDA - EBITDA = $200mm - Leverage = 6x EBITDA - Exit EBITDA = $300mm - Exit at 10x EBITDA

The IRR is approximately 17.6%, derived from a 2.25x MOIC ($1,800mm exit equity on $800mm invested) over a 5-year holding period: (2.25)^(1/5) − 1 ≈ 17.6%.

Walk me through a DCF for a gold mine. (Forecast until complete depletion of the mine. Terminal value is a salvage value of the mine or even environmental remediation liabilities.)

Forecast annual production over the mine's finite life until reserve depletion, project revenue using gold price times ounces produced, subtract operating costs, capex, and taxes to get unlevered FCF each year, then discount all cash flows plus a terminal salvage value net of environmental remediation costs back at the mining-appropriate WACC—there is no perpetuity-based terminal value since the resource is finite.

For a deal you have been following, what is the beta for the sector?

For the enterprise software deal I followed, the median unlevered beta across comparable companies was approximately 1.20, sourced from Capital IQ using a two-year weekly regression against the S&P 500, then re-levered to the target's pro forma capital structure for WACC.

Given information about an acquirer and target (including net income, number of shares, and price), where the acquisition is structured as 50% debt and 50% stock, determine whether the deal is accretive or dilutive.

Calculate pro forma EPS by combining both companies' net income (minus after-tax interest on the debt portion) and dividing by the acquirer's shares plus newly issued shares; if pro forma EPS exceeds the acquirer's standalone EPS, the deal is accretive, otherwise dilutive.

You purchase a firm with an equity offer of $800. The firm has $250 net debt, LTM EBITDA of $100, and pretax synergies of $5. What is the LTM EBITDA multiple with synergies?

The LTM EBITDA multiple with synergies is 10.0×, calculated as the total enterprise value of $1,050 ($800 equity + $250 net debt) divided by synergy-adjusted EBITDA of $105 ($100 LTM EBITDA + $5 pretax synergies).

What could you consider if your client wants to raise equity?

Consider the instrument type (IPO, follow-on, convertible, PIPE, ATM, rights offering), current valuation, dilution impact on EPS, use of proceeds, market conditions, size relative to market cap, speed and confidentiality needs, and regulatory requirements.

Which one has the most impact on free cash flow: revenue up 10, depreciation down 10, or capex down 10?

CapEx down 10 has the greatest impact, boosting FCF by a full 10, since it flows dollar-for-dollar with no tax friction, whereas revenue up 10 only adds 7.50 after tax and depreciation down 10 actually hurts FCF by 2.50.

Company A has 10 shares outstanding, a share price of $25, net income of $10, and a 40% tax rate. Company B has a $150 market cap, net income of $10, and a 40% tax rate. If A buys B and finances the acquisition with 100% stock, is the deal accretive or dilutive?

Accretive. Company A's earnings per share (EPS, net income divided by shares outstanding) rises from $1.00 to $1.25, up 25%. Assuming A pays B's $150 market value with no premium, it issues $150 ÷ $25 = 6 new shares, so the combined $20 of net income is spread over 16 shares. The shortcut: A's stock trades at 25x earnings (its P/E, or price-to-earnings ratio) and it buys B at 15x. Paying with stock for earnings priced below your own P/E is accretive.

Can biotech companies take on debt?

Yes — commercial-stage biotechs with recurring revenue can access conventional debt markets like any corporate borrower, while pre-revenue biotechs are limited to specialized structures like venture debt or convertible notes that compensate lenders for binary risk.

Walk me through the main valuation approaches.

The three main approaches are DCF (intrinsic value from discounted future cash flows), Comparable Companies (relative value from public trading multiples), and Precedent Transactions (relative value from M&A deal multiples, which include a control premium).

10% cost of debt and 10x P/E. How would you raise capital? (Debt is pre-tax.)

Raise debt: a 10x P/E implies a 10% earnings yield, which is the implied cost of equity. The 10% pre-tax cost of debt becomes 7.5% after tax assuming the standard 25% tax rate, so debt is cheaper.

Walk through a DCF and explain what each line item means.

Project unlevered free cash flow (EBIT after taxes plus D&A minus CapEx minus changes in NWC), discount at WACC, add a discounted terminal value to get enterprise value, subtract net debt, and divide by diluted shares for implied price.

What is the IRR for the following transaction? - Buy company at year 0 for 10x EBITDA - EBITDA = $200mm - Leverage = 6x EBITDA - Exit EBITDA = $300mm - Exit at 10x EBITDA

The IRR is approximately 17.6%, derived from a 2.25x MOIC ($1,800mm exit equity on $800mm invested) over a 5-year holding period: (2.25)^(1/5) − 1 ≈ 17.6%.

Walk me through a DCF for a gold mine. (Forecast until complete depletion of the mine. Terminal value is a salvage value of the mine or even environmental remediation liabilities.)

Forecast annual production over the mine's finite life until reserve depletion, project revenue using gold price times ounces produced, subtract operating costs, capex, and taxes to get unlevered FCF each year, then discount all cash flows plus a terminal salvage value net of environmental remediation costs back at the mining-appropriate WACC—there is no perpetuity-based terminal value since the resource is finite.

For a deal you have been following, what is the beta for the sector?

For the enterprise software deal I followed, the median unlevered beta across comparable companies was approximately 1.20, sourced from Capital IQ using a two-year weekly regression against the S&P 500, then re-levered to the target's pro forma capital structure for WACC.

Given information about an acquirer and target (including net income, number of shares, and price), where the acquisition is structured as 50% debt and 50% stock, determine whether the deal is accretive or dilutive.

Calculate pro forma EPS by combining both companies' net income (minus after-tax interest on the debt portion) and dividing by the acquirer's shares plus newly issued shares; if pro forma EPS exceeds the acquirer's standalone EPS, the deal is accretive, otherwise dilutive.

You purchase a firm with an equity offer of $800. The firm has $250 net debt, LTM EBITDA of $100, and pretax synergies of $5. What is the LTM EBITDA multiple with synergies?

The LTM EBITDA multiple with synergies is 10.0×, calculated as the total enterprise value of $1,050 ($800 equity + $250 net debt) divided by synergy-adjusted EBITDA of $105 ($100 LTM EBITDA + $5 pretax synergies).

What could you consider if your client wants to raise equity?

Consider the instrument type (IPO, follow-on, convertible, PIPE, ATM, rights offering), current valuation, dilution impact on EPS, use of proceeds, market conditions, size relative to market cap, speed and confidentiality needs, and regulatory requirements.

Question Bank

Evercore IB Interview Questions

Q: Are Evercore interviews harder than bulge brackets?

Generally yes on technical depth. Evercore and the elite boutiques tend to push further into valuation nuance, M&A mechanics, and accretion / dilution than a typical bulge bracket first round. OFFERGOBLIN's Evercore-tagged questions reflect that rigor.

Q: What should I focus on for an Evercore interview?

Master valuation cold — DCF, comparable companies, precedent transactions, and how they reconcile — plus accretion / dilution and the mechanics of an M&A deal. Fit matters too: Evercore wants candidates who clearly want advisory, not just any offer. OFFERGOBLIN lets you drill the technical subset by round.

Evercore investment banking interview questions from candidate reports. The technical bar, common M&A and valuation questions, and how Evercore superdays differ from bulge brackets.

Evercore is one of the most competitive seats on the Street, and its interviews reflect it. As a top advisory firm, Evercore expects precise technicals — expect to be pushed on valuation nuance, M&A mechanics, and accretion / dilution well past the surface-level answer. The analyst class is small, so the bar per seat is high.

OFFERGOBLIN's Evercore filter pulls over 370 candidate-reported questions tagged to the firm. Drill them in Bank & Round mode to rehearse the depth Evercore interviewers are known for rather than the generic technicals a first-round screen might use.

Sample Evercore IB Interview Questions

A short sample from the full bank. Tap an answer to reveal it.

Evercore/ Superday/ Technology
Which one has the most impact on free cash flow: revenue up 10, depreciation down 10, or capex down 10?
CapEx down 10 has the greatest impact, boosting FCF by a full 10, since it flows dollar-for-dollar with no tax friction, whereas revenue up 10 only adds 7.50 after tax and depreciation down 10 actually hurts FCF by 2.50.
Work full answer in app
Evercore/ 1st Round/ Generalist
Company A has 10 shares outstanding, a share price of $25, net income of $10, and a 40% tax rate. Company B has a $150 market cap, net income of $10, and a 40% tax rate. If A buys B and finances the acquisition with 100% stock, is the deal accretive or dilutive?
Accretive. Company A's earnings per share (EPS, net income divided by shares outstanding) rises from $1.00 to $1.25, up 25%. Assuming A pays B's $150 market value with no premium, it issues $150 ÷ $25 = 6 new shares, so the combined $20 of net income is spread over 16 shares. The shortcut: A's stock trades at 25x earnings (its P/E, or price-to-earnings ratio) and it buys B at 15x. Paying with stock for earnings priced below your own P/E is accretive.
Work full answer in app
Evercore/ 1st Round/ Healthcare
Can biotech companies take on debt?
Yes — commercial-stage biotechs with recurring revenue can access conventional debt markets like any corporate borrower, while pre-revenue biotechs are limited to specialized structures like venture debt or convertible notes that compensate lenders for binary risk.
Work full answer in app
Evercore/ 1st Round/ Technology
Walk me through the main valuation approaches.
The three main approaches are DCF (intrinsic value from discounted future cash flows), Comparable Companies (relative value from public trading multiples), and Precedent Transactions (relative value from M&A deal multiples, which include a control premium).
Work full answer in app
Evercore
10% cost of debt and 10x P/E. How would you raise capital? (Debt is pre-tax.)
Raise debt: a 10x P/E implies a 10% earnings yield, which is the implied cost of equity. The 10% pre-tax cost of debt becomes 7.5% after tax assuming the standard 25% tax rate, so debt is cheaper.
Work full answer in app
Evercore/ 1st Round/ Energy
Walk through a DCF and explain what each line item means.
Project unlevered free cash flow (EBIT after taxes plus D&A minus CapEx minus changes in NWC), discount at WACC, add a discounted terminal value to get enterprise value, subtract net debt, and divide by diluted shares for implied price.
Work full answer in app
Evercore/ 1st Round/ Technology
What is the IRR for the following transaction? - Buy company at year 0 for 10x EBITDA - EBITDA = $200mm - Leverage = 6x EBITDA - Exit EBITDA = $300mm - Exit at 10x EBITDA
The IRR is approximately 17.6%, derived from a 2.25x MOIC ($1,800mm exit equity on $800mm invested) over a 5-year holding period: (2.25)^(1/5) − 1 ≈ 17.6%.
Work full answer in app
Evercore
Walk me through a DCF for a gold mine. (Forecast until complete depletion of the mine. Terminal value is a salvage value of the mine or even environmental remediation liabilities.)
Forecast annual production over the mine's finite life until reserve depletion, project revenue using gold price times ounces produced, subtract operating costs, capex, and taxes to get unlevered FCF each year, then discount all cash flows plus a terminal salvage value net of environmental remediation costs back at the mining-appropriate WACC—there is no perpetuity-based terminal value since the resource is finite.
Work full answer in app
Evercore
For a deal you have been following, what is the beta for the sector?
For the enterprise software deal I followed, the median unlevered beta across comparable companies was approximately 1.20, sourced from Capital IQ using a two-year weekly regression against the S&P 500, then re-levered to the target's pro forma capital structure for WACC.
Work full answer in app
Evercore/ Superday/ Technology
Given information about an acquirer and target (including net income, number of shares, and price), where the acquisition is structured as 50% debt and 50% stock, determine whether the deal is accretive or dilutive.
Calculate pro forma EPS by combining both companies' net income (minus after-tax interest on the debt portion) and dividing by the acquirer's shares plus newly issued shares; if pro forma EPS exceeds the acquirer's standalone EPS, the deal is accretive, otherwise dilutive.
Work full answer in app
Evercore/ 1st Round/ Technology
You purchase a firm with an equity offer of $800. The firm has $250 net debt, LTM EBITDA of $100, and pretax synergies of $5. What is the LTM EBITDA multiple with synergies?
The LTM EBITDA multiple with synergies is 10.0×, calculated as the total enterprise value of $1,050 ($800 equity + $250 net debt) divided by synergy-adjusted EBITDA of $105 ($100 LTM EBITDA + $5 pretax synergies).
Work full answer in app
Evercore/ Superday/ PCM
What could you consider if your client wants to raise equity?
Consider the instrument type (IPO, follow-on, convertible, PIPE, ATM, rights offering), current valuation, dilution impact on EPS, use of proceeds, market conditions, size relative to market cap, speed and confidentiality needs, and regulatory requirements.
Work full answer in app

Frequently Asked Questions

Are Evercore interviews harder than bulge brackets?

What should I focus on for an Evercore interview?

Sample Evercore IB Interview Questions

Frequently Asked Questions

Other question categories