Merger and Acquisition Analyst Interview Question #1

Here are the Interview questions that will help you to prepare for M&A role.


  1. Walk me through about basic merger model?

  2. Tell me the difference between asset beta and equity beta?

  3. What are key difference between a merger and an acquisition?

  4. Why a company want to acquire another company? What is main reason behind it?

  5. What do you mean conglomerate merger?

  6. What do you mean by congeneric merger?

  7. What is reverse merger can you give me the example of reverse merger?

  8. Why would an acquisition be dilutive?

  9. A company with a higher P/E acquires one with a lower P/E – is this accretive or dilutive and why?

  10. Why a strategic acquirer typically be willing to pay more for a company than a private equity firm?

  11. Why goodwill & other intangibles get created in an acquisition?

  12. Tell me the difference between goodwill and other intangible assets?

  13. What do you mean by synergies, and can you give me a few examples?

  14. How are synergies used in merger models?

  15. What do you mean by vertical merger?

  16. What do you mean by horizontal merger?

  17. What do you mean by target valuation?

  18. Can you give me some examples of why a company would want to take over another company?

  19. Why does mergers or acquisitions happen? Did you think it is good?

  20. How do you determine the purchase price for the target company in an acquisition and which method you use?

  21. Imagine a company overpays for another company? What typically happens afterwards and can you give any recent examples?

  22. A buyer pays $500 million for the seller in an all-stock deal, but a day later the market decides it’s only worth $300 million. What will happens?

  23. Why do mergers and acquisitions fail?

  24. What is beta how you proceed to calculate the beta?

  25. Tell me how would you know if an acquisition is dilutive?

  26. What discount rates will you go about using?

  27. If i give you the FCFF then how would you Calculate the FCFE?

  28. Tell me can a company have negative enterprise value?

  29. In case of takeover of any firm, what would you consider – the equity value or the enterprise value?

  30. Tell me how do you value a company?

  31. Explain me how do you account for transaction costs, financing fees, and miscellaneous expenses in a merger model?

  32. How do you calculate break even synergies in an M&A deal?

  33. How would an accretion and dilution model be different for a private seller?

  34. How buyer offer it to a seller in an M&A deal?

  35. Walk me through the most important terms in M&A deal?

  36. What is deferred tax liabilities (DTLs) and deferred tax assets (DTAs) get created in M&A deals?

  37. Tell me how you get DTL and DTA in an asset purchase?

  38. How do account for DTL in forward projections in a merger model?

  39. Why are you interested in this role?

  40. What are the main role of as a merger and acquisition analyst?

  41. What are the qualities you have a merger and acquisition analyst need to be successful?

  42. What was the major challenges did you face during your last role? How did you manage them?

  43. Tell me your daily routine as a merger and acquisition analyst?

  44. Describe me in brief about your previous experience?

  45. What kind of strategies and mindset you havea required for this role?

  46. What is the biggest challenge that you see in this job?

  47. How do you stay motivated in your work?

  48. Describe a time when you failed in this role and the lesson you learned.

  49. Why do you feel you are the most suited for this role?

  50. Share with us your greatest achievement.

  51. What do you mean by reverse merger?

  52. What do you understand by the term successful acquisition?

  53. How will you differentiate between a merger and an acquisition?

  54. What do you understand by the term congeneric merger?

  55. Explain the difference between asset beta and equity beta.

  56. How do you deal with work pressure?

  57. How do you perceive multitasking?

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