Mergers & Acquisitions – Finance Technical Interview Questions

  • Why would two companies merge? What major factors drive mergers and acquisitions?
  • What’s the difference between I-banking and Private Equity?
  • Would you make an offer to buy a company at its current stock price?
  • If a company with a P/E of 20 acquires a company with a P/E of 15 with stock, is the transaction accretive or dilutive?
  • What is the difference between a stock purchase and an asset purchase?
  • What are the major differences between purchase and pooling accounting? What is the current state of both methods of accounting?
  • What are some common anti-takeover tactics?
  • Would you pay more for an asset/company with a tax basis of 100 or a tax basis of 0? Why?