Financeable Training

New Week. New Challenge. No Excuses. Think you’ve got what it takes to break into Investment Banking? I created the challenge interface to help you prep for your Investment Banking interviews and to sharpen your knowledge in High Finance. Each week, top students/career professionals create 5 new questions covering the trickiest topics (i.e. LBO, Accounting, Valuation, M&A) that you'll see in Investment Banking interviews and on the job. ✅ 5 brand-new questions drop every week — all free. 🏆 Monthly prizes for the top 3 scorers. 💥 Compete, learn, and climb the leaderboard. Jump into this week’s Challenge: -> Go to Finance-able.com -> Click Casehub

Investment Banking Interview Question Difficulty: Intermediate Trick Question: If a company’s Enterprise Value stays the same but its cash balance rises, what happens to its Equity Value? 🚨 The Trap: Many candidates recite “EV = Equity + Net Debt” and then freeze, never stating the result. ✅ Answer & Explanation: Enterprise Value is the purchase price of the business (based on future cash flow prospects). Equity Value is the owner’s stake—the value attributable to the owner (including cash earned in the past that hasn’t been distributed). An increase in cash sits in the bank account and belongs to the owner, not to the ongoing operations of the business. From the formula EV = Equity Value + Net Debt (where Net Debt = Debt – Cash), when cash ↑, net debt ↓, so Equity Value ↑, even though EV remains unchanged. 🧠 Real-Life Anchor: EV captures the standalone purchase value of operations; Equity Value captures what the owner actually walks away with. #InvestmentBanking #PrivateEquity #EnterpriseValue #EquityValue #ValuationTips

Trying to break into Investment Banking? Test your knowledge with us for FREE each week. 🥇 We have monthly prizes for the top 3 scorers ⏰ One more day left to test your knowledge with this week's challenge questions and then we'll have 5 brand new questions each week! To access the Challenge: -> Go to Finance-able.com -> Click Casehub

⁉️A company has $50 of equity value, $50 of debt, and no cash. 🤔🧐 Enterprise Value = Equity + Net Debt ‼️ If the company generates $1 of cash flow the next day, what’s the enterprise value? $99 $100 $101 … Questions like this exist to test whether you really understand the concept of enterprise value, or just memorized the traditional formula. Real Life Explanation: The simplest way to understand this is to think about a real life asset like a rental property. If this were your rental property, and you generated an extra dollar in cash flow, the value of the property doesn’t go down. Formula Explanation: When you generate an extra dollar of cash flow, equity value goes up. So the extra dollar you generated increases equity value, and then the dollar of cash is subsequently subtracted out when you work from Equity value to enterprise value. If this last part sounded confusing, you’re not alone. The trick here is to have a real life anchor so you don’t get spun into a loop when someone ask you a question like this. This is also why I emphasize in our courses that you should really focus on isolating the variables of equity value, debt, and cash separately until you really understand the roots of this concept. I cover this and so much more in Valuation Fundamentals https://lnkd.in/eYr-k6hC #investmentbanking #privateequity #interviewprep #financejobs

Investment Banking & Private Equity Interview Prep ⁉️Question: A company was purchased in an LBO for $100 (with 50% Debt), the business was sold five years later for $120. How much cash flow does the business need to generate over the 5 years for the LBO to produce a 15% IRR? Drop your answers in the comments. We’ll pin the best explanation. If you’re really stuck you can check the answer below: ⬇️ ‼️The answer: The Debt at the time of purchase is $50, which means that the Equity contribution is $50. To generate a 15% IRR, the equity will need to double at the time of sale to $100. If the Business is sold for $120, that means that ending Net Debt must be $20. So the Business would need to generate $30 of cash over the life of the LBO to pay down Debt from $50 to $20. #investmentbanking #privateequity #financejobs #internships

A common investment banking and private equity interview is question: How does Unlevered Free Cash Flow (UFCF) relate to the cash-flow-statement method (CFO – CFI)? In my latest YouTube video, I walk through this step by step... I show when they match, when they diverge with interest, and answer whether CFO is levered or unlevered. If you want to go deeper, check out our Accounting Deep Dive course: https://lnkd.in/e3WE-wY5 https://lnkd.in/erEtdHyP

Investment Banking Interview Prep Difficulty Level: Beginner 💡 ❌ Most IB Candidates will get this wrong! ❌ Cash: $100 (25% Restricted) Accounts Receivable: $250 Inventory: $150 Accounts Payable: $200 Current Portion of Long-Term Debt: $50 Calculate working capital — as if you’re on the job in investment banking. ⚠️CAUTION: What you learned in accounting class isn’t the full story. In accounting, Working Capital = Current Assets – Current Liabilities. But in finance, we care about how much cash is tied up in operations (the proper name is Operating Working Capital or OWC). Here’s the key difference 👇  We remove items that don’t reflect day-to-day operations: ❌ Exclude Cash — it’s not tied up in operations. ✅ Include Restricted Cash — it’s locked up and unavailable. ❌ Exclude Short-Term Debt / Current Portion of LT Debt — that’s financing, not operations. Now calculate step-by-step: WC = (Restricted Cash + Accounts Receivable + Inventory) – Accounts Payable WC = ($25 + $250 + $150) – $200 = $225 million That $225M represents cash tied up in operations — funds needed to support AR, inventory, and payables. #investmentbanking #interviews #financejobs #accounting #financialanalysis #workingcapital

Investment Banking Interview Prep Difficulty Level: Beginner What is the appropriate projection time period for Stage 1 of a DCF? Why? Explanation and answer 👇 “5–10 years” is the standard interview answer… but that’s only the starting point. The goal is to project until the business reaches steady-state performance — when growth stabilizes around GDP-like growth rate. So while 5–10 years is a good rule of thumb, the correct answer is: 📈 Project until the company matures into stable growth. #investmentbanking #interviews #financejobs #DCF #valuation #financialanalysis

📣 I'm very proud to announce the launch of our Private Equity Associate Interview Ready Package What makes this package different from everything else on the market is that I teach you the process through the eyes of VPs, Principals, and Partners (i.e. the people actually making the hiring decisions). This package includes a 90-hour full immersion path, with advanced modules, reps, and real-world cases that prepare you for anything interviewers throw your way. Check it out: https://lnkd.in/dtDTjdwS

Don’t crash and burn on your hard earned networking calls! 💣 Here are the 3 biggest mistakes to avoid 👇 3️⃣ Forcing deal talk — Bankers live and breathe finance all day. If the convo turns personal, run with it. They’ll remember you better than the 27th person who asked about their last deal. 2️⃣ Not doing enough research — Always Google them (quietly 😅) and check LinkedIn so you can bring up genuine common ground. Just… don’t say “I Googled you.” 1️⃣ Not asking for referrals — Close strong. Thank them, show enthusiasm, and ask if they’d be open to introducing you to others at the firm. That’s how you go from linear to exponential network growth. #investmentbanking #networkingtips #interviews #financejobs #careertips #investmentbankingprep