The full sequence
Build from fundamentals: accounting → valuation → M&A (see Commercial vs IB) → LBOs → capital markets → industry analysis.
We do not have a rule of thumb for hours per stage. How long a category takes varies a lot from person to person. GOBLINMODE handles that part: you keep your health score, and you stick to it, instead of budgeting the hours yourself.
Advanced topics build on fundamentals. Master the foundation first, then let the table below tell you where the questions concentrate.
Question distribution by category
| Category | Representative Clusters | Share | Visual |
|---|
| Accounting | 3-Statement Basics, Modeling, Depreciation Flows, Transaction Effects | 12.2% | ███████████████ |
| Valuation | Valuation Multiples, EBITDA & Multiples, DCF Valuation, Terminal Value | 17.7% | ████████████████████ |
| M&A | Accretion/Dilution, Strategic Rationale, Purchase Accounting, Synergies | 15.8% | ██████████████████ |
| LBO | Fundamentals, Model Mechanics, Returns | 8.0% | ██████████ |
| Capital Markets | Capital Allocation, Financial Instrument Comparisons, Advisory, Macro | 17.9% | ████████████████████ |
| Industry | Industry Trends, Company Pitch, Recent Deal Analysis, Pre-Revenue Biotech | 12.5% | ███████████████ |
| Behavioral | Leadership, Candidate Fit, Why IB, Resume Deep Dive, Bank & Group Fit | 15.8% | ██████████████████ |
Accounting
Accounting is transaction language. Know each statement's line items, their connections, and how changes propagate.
Core clusters: 3-Statement Basics, Working Capital Analysis
Representative questions:
- Walk me through how $10 of depreciation flows through the three statements.
- What does negative working capital mean?
- How would you forecast working capital line items?
Clear mechanical understanding here removes the abstraction from everything that follows: valuation, M&A, and LBOs.
Valuation
Valuation converts accounting into judgment: from what happened to what it is worth. Start with comparables and DCFs, and focus on how value responds to discount rates, growth, and margins.
Core clusters: EBITDA and Valuation Multiples, DCF Terminal Value, Cost of Equity
Representative questions:
- Why do we use EBITDA as a proxy for free cash flow?
- How do you calculate the cost of equity?
- When should you use perpetuity method vs. exit multiple for terminal value?
Learn to interpret the outputs (multiples, implied share prices, enterprise vs. equity value) so you can apply them in M&A and LBO contexts instead of just producing them.
M&A
M&A applies valuation dynamically. Understand why acquisitions happen, how pricing works, and what the deal does to both parties' financials. Master accretion/dilution math, purchase accounting, and strategic rationale.
Core clusters: M&A Strategic Rationale, M&A Purchase Accounting
Representative questions:
- Why would a company buy another?
- How do deferred tax liabilities get created in M&A deals?
- What are NOLs and why are they valuable?
The skill is linking the qualitative factors (synergies, fit, motivation) to the quantitative outputs (EPS impact, goodwill, balance-sheet adjustments).
LBOs
LBOs stress-test your valuation logic by adding capital structure constraints. Understand cash generation, leverage mechanics, and return drivers. Skip memorizing Excel formulas. Grasp how debt amplifies both risk and reward.
Core clusters: LBO Fundamentals, LBO Model Mechanics
Representative questions:
With accounting and valuation mastered, LBOs feel natural: the same engine operating under constraints.
Capital markets
Markets determine what valuations realize. Understand how companies raise and deploy capital (buybacks, dividends, IPOs, bond offerings) and how macro conditions shift those decisions.
Core clusters: Capital Allocation and Payout Policy, Client Advisory and Idea Generation
Representative questions:
- What can a company do with excess cash?
- When would a company repurchase shares versus issue dividends?
- If your client wanted to IPO, what advice would you give them?
Market understanding adds realism. It connects valuation to timing, liquidity, and investor psychology.
Industry application
With the technicals internalized, the last layer is market literacy: interpreting trends and deals, and connecting data to narratives.
Core clusters: Industry Trends and Outlook, Recent Deal Analysis
Representative questions:
- What are the trends in your target industry?
- Tell me about a deal you've been following.
- Would you have done the deal at that price?
Discussing an industry intelligently while connecting it to valuation logic signals client-facing credibility.
Synthesis
Formula memorization is insufficient. Understand how the pieces connect: accounting tells you what happened, valuation what it is worth, M&A and LBOs what happens when capital moves, and capital markets where it flows next.
The hierarchy turns technical prep from a pile of topics into one connected system. For endgame strategy, see Offer Timing & Negotiation.
