M&A Analyst Interview Questions UK: 8 Real Questions and What Interviewers Want

Before your M&A Analyst interview, it helps to see the questions from the interviewer's side. We have picked eight from our set of 16 and added the reason each one gets asked.

Eight M&A Analyst interview questions, and what the interviewer is thinking

1. How do the three financial statements link together?

Why they ask: This is the foundation for every model an analyst builds, and it is asked in almost every junior M&A interview.

2. If depreciation increases by ten pounds, what happens to the three statements?

Why they ask: A classic technical test of whether you can trace a change through the model.

3. How would you build a trading comparables table from scratch?

Why they ask: Comps are among the first tasks given to an analyst, so interviewers want to see your method.

4. What is goodwill, and how does it arise in an acquisition?

Why they ask: Acquisition accounting is core to M&A and tests understanding of the balance sheet effects of a deal.

5. What Excel skills and good modelling practices do you think are most important for an analyst?

Why they ask: Analysts spend most of the day in Excel, so efficiency and accuracy are essential.

6. The VP and the associate on your deal give you conflicting instructions on a slide, and both want it done by tonight. What do you do?

Why they ask: Tests how you handle competing demands from senior people while keeping the team aligned.

7. Tell me about a time you taught yourself a technical skill or a new sector quickly to complete a piece of analysis.

Why they ask: Analysts must get up to speed on unfamiliar sectors and tools fast.

8. What does a typical day as an M&A Analyst involve?

Why they ask: Checks you understand the realities of the junior role, including hours and tasks.

A sample answer to question 1

How do the three financial statements link together?

Net income from the income statement flows into retained earnings on the balance sheet, and is the starting point of the cash flow statement. In the cash flow statement, I add back non-cash items like depreciation, adjust for changes in working capital to reach operating cash flow, then deduct capital expenditure for investing, and show debt and equity movements under financing. The net change in cash goes to the cash line on the balance sheet. Capex increases property, plant and equipment, which is then reduced by depreciation that flows through the income statement. Working capital items such as receivables, inventory and payables on the balance sheet drive the cash flow adjustments, and debt balances drive interest expense on the income statement. The balance sheet must balance, which is the main check that the links are right. If I change one assumption, for instance revenue growth, it affects profit, cash, working capital and the debt balance, so the model must flow through. I always add checks to catch errors straight away.

Common mistake to avoid: Reciting the statements separately without the links; forgetting depreciation is non-cash

Want the rest?

Full model answers, key points and common mistakes for all 16 questions are on the M&A Analyst interview questions page. The first five are free, no sign-up needed.