How to Answer "Walk Me Through a Deal You Followed"

Why This Question Matters

"Walk me through a deal you followed" or "Tell me about a recent transaction that interested you" appears in nearly every investment banking interview. It's not just small talk—this question tests multiple competencies at once.

Interviewers use this question to evaluate:

A strong answer demonstrates you're not just memorizing interview questions—you're actively engaged with the markets and thinking critically about transactions. A weak answer signals you're unprepared or not genuinely interested in the work.

What Interviewers Are Really Evaluating

When someone asks about a deal you followed, they're looking for several things:

1. Did You Actually Follow a Deal?

The question assumes you read financial news and follow transactions. If you can't discuss a single deal, it raises a major red flag. It suggests you're not genuinely interested in investment banking.

2. Can You Explain It Clearly?

Investment banking is about distilling complex information into clear narratives for clients. If you can't explain a deal in 60-90 seconds, you're not ready for the role.

3. Do You Understand Deal Rationale?

Anyone can recite facts from a press release. Strong candidates explain why the deal makes strategic sense—what value is being created, what problems it solves, what synergies exist.

4. Can You Think Critically?

The best answers go beyond cheerleading. They acknowledge potential challenges, regulatory concerns, or integration risks. This shows mature business judgment.

Understanding the complete IB and PE interview process helps you recognize that this question appears across all stages—from first-round screens to final Superdays with senior bankers.

How to Choose the Right Deal

Pick Something Recent

Discuss a deal announced in the past 6-12 months, ideally within the last 3-6 months. Avoid deals from several years ago unless they're particularly relevant to your story.

Choose Based on Relevance

Prioritize deals that:

Avoid:

Pick Something You Actually Find Interesting

Authenticity matters. If you're genuinely interested in a deal, your enthusiasm will show. If you're just regurgitating facts, interviewers will notice.

The Framework for Discussing Any Deal

Use this structure every time. It ensures you cover the key points without rambling:

1. The Basics (10-15 seconds)

Start with the essential facts:

Example: "I've been following Microsoft's acquisition of Activision Blizzard, announced in January 2022 for approximately $69 billion in an all-cash transaction. It's one of the largest tech acquisitions in history."

2. The Strategic Rationale (30-45 seconds)

This is the most important part. Explain why the deal makes sense:

Example: "The strategic rationale centers on Microsoft's gaming ambitions. Activision brings major franchises like Call of Duty, World of Warcraft, and Candy Crush, strengthening Microsoft's position in mobile and PC gaming. More importantly, it accelerates Microsoft's Game Pass subscription strategy—similar to how Netflix transformed video consumption. Microsoft sees gaming as central to its metaverse and cloud computing strategy, and Activision's content library and 400 million monthly active users provide critical scale."

3. Key Considerations or Challenges (15-20 seconds)

Show critical thinking by acknowledging complexities:

Example: "The deal faced significant regulatory scrutiny from the FTC, UK regulators, and EU authorities concerned about market concentration in gaming. Microsoft had to make concessions, including allowing cloud gaming competitors access to Activision titles. The integration will also be complex—combining two large organizations with different cultures."

4. Your Perspective (10-15 seconds)

Briefly state why you find the deal interesting or what you think about its prospects. This personalizes your answer.

Example: "I find this deal fascinating because it represents a major bet on the future of gaming and digital content distribution. Whether Microsoft can successfully integrate Activision and realize the synergies will be a key test of their M&A execution capabilities."

Total time: 60-90 seconds

Sample Answers by Deal Type

Example 1: Strategic M&A (Tech)

Question: "Tell me about a recent deal you followed."

Answer: "I've been following Broadcom's acquisition of VMware, announced in May 2022 for approximately $61 billion. It's one of the largest technology acquisitions ever.

The strategic rationale is compelling. Broadcom, primarily a semiconductor and infrastructure software company, gains VMware's enterprise software business—particularly in cloud infrastructure and virtualization. This diversifies Broadcom's revenue streams and reduces dependence on cyclical semiconductor markets. For VMware, joining Broadcom provides financial backing to compete better against hyperscale cloud providers like AWS and Azure.

The deal creates meaningful synergies through cross-selling opportunities—Broadcom can bundle VMware software with its infrastructure offerings, and VMware gets access to Broadcom's large enterprise customer base. There are also significant cost synergies from eliminating duplicate corporate functions.

The main challenges were regulatory approval—given the deal's size—and cultural integration, as the companies have different operating models. The deal closed in late 2023 after addressing regulatory concerns.

I find this deal interesting because it shows the ongoing consolidation in enterprise software and how traditional hardware companies are pivoting toward higher-margin software businesses."

Example 2: Mega-Cap M&A (Consumer)

Question: "Walk me through a recent transaction that interested you."

Answer: "I've been following Amazon's acquisition of One Medical, announced in July 2022 for $3.9 billion in an all-cash deal.

The strategic logic is clear. Amazon is making a significant push into healthcare, and One Medical provides a ready-made primary care platform with 200+ locations and a subscription-based membership model. This complements Amazon Pharmacy and Amazon Care, creating an integrated healthcare ecosystem. Amazon sees healthcare as a massive, inefficient market ripe for disruption—similar to retail before Amazon entered.

From One Medical's perspective, Amazon's technology, logistics capabilities, and capital provide resources to scale much faster than they could independently. There's also potential for significant synergies—Amazon could integrate One Medical services with its existing healthcare offerings and leverage its technology platform.

The main challenges include regulatory scrutiny around data privacy and market concentration in healthcare, plus the difficulty of integrating a healthcare provider into Amazon's culture. Healthcare has proven challenging even for tech giants—Google and Microsoft have had mixed success.

What interests me about this deal is Amazon's long-term healthcare strategy. If successful, they could fundamentally reshape primary care delivery, but execution in healthcare is notoriously difficult."

Example 3: IPO Discussion

Question: "Tell me about a recent IPO you found interesting."

Answer: "I followed Arm Holdings' IPO in September 2023, which raised about $5 billion and valued the company at roughly $54 billion.

Arm's business model is fascinating—they design chip architectures and license the intellectual property rather than manufacturing chips themselves. Their technology powers most smartphones globally, and they're increasingly important in data centers and AI computing. The IPO represented SoftBank's partial exit after taking Arm private in 2016.

The timing was strategic. The IPO market had been relatively quiet, but demand for AI and chip-related stocks was strong. Arm positioned itself as an AI infrastructure play, which resonated with investors given the AI boom. The company generates steady royalty revenue from chip sales, creating a relatively predictable revenue stream.

However, there were concerns about valuation—some analysts thought the $54 billion valuation was aggressive given competition from RISC-V and Arm's dependence on smartphone markets. There were also questions about revenue growth sustainability.

I found this IPO interesting because it tested investor appetite after a quiet period for tech IPOs, and it highlighted the critical role of chip architecture in AI computing."

Stay current on market developments: While you're preparing answers to behavioral questions like this one, use our iOS app to practice the 400+ technical and behavioral questions you'll face—ensuring you're ready for every aspect of IB interviews.

Common Mistakes to Avoid

1. Not Following Any Deals

The Problem: Showing up to an interview unable to discuss a single transaction signals lack of genuine interest.

The Solution: Read financial news daily. Follow at least 2-3 deals in depth so you can discuss them confidently. Set up Google Alerts for M&A announcements in relevant sectors.

2. Only Knowing Surface-Level Facts

Weak answer: "Microsoft bought Activision for $69 billion because they wanted to get bigger in gaming."

Strong answer: Explains strategic rationale, synergies, challenges, and demonstrates critical thinking about the deal's prospects.

The Solution: Read beyond the headline. Find the investor presentation, read analyst commentary, understand the strategic logic.

3. Choosing an Overly Complex Deal

The Problem: Picking a deal so complicated you can't explain it clearly in 90 seconds.

The Solution: Pick a deal you can explain to someone unfamiliar with the industry. Complexity isn't impressive if you can't communicate it.

4. Not Connecting to the Firm

Missed opportunity: Discussing a deal that has nothing to do with the bank you're interviewing with.

Better approach: If the bank advised on a recent deal, discuss it. This shows you researched the firm and demonstrates genuine interest.

Example: "I saw that [Bank] advised on [Deal]. I found the transaction particularly interesting because..."

5. Being Overly Positive or Negative

Too positive: "This deal is amazing and will definitely succeed."

Too negative: "This deal makes no sense and will definitely fail."

Balanced approach: "The strategic rationale is compelling because X and Y, but there are meaningful challenges around Z. The success will depend on execution, particularly around integration."

6. Rambling Without Structure

The Problem: Starting with random facts, jumping around, no clear narrative.

The Solution: Use the framework (basics → rationale → challenges → your view). Practice until you can deliver it smoothly in 60-90 seconds.

How to Prepare

1. Follow Financial News Daily

Essential sources:

Set up:

2. Deep Dive on 3-5 Deals

Don't just skim headlines. For 3-5 recent deals:

3. Practice Your Delivery

1. Write out your answer using the framework

2. Time yourself (aim for 60-90 seconds)

3. Record yourself and listen back

4. Refine until natural and concise

5. Practice with friends or mentors

4. Prepare Multiple Deals

Have 2-3 deals ready to discuss:

This flexibility ensures you can adapt if they've already heard about your first choice from other candidates.

Connecting to Other Interview Questions

Your deal discussion should align with your overall interview narrative:

If asked "Why investment banking?" - Reference how following deals sparked your interest: "Following Microsoft's acquisition of Activision made me realize how fascinating the strategic and financial aspects of large transactions are..."

If asked about your background - Connect deals to your interests: "In my finance class, I became interested in M&A after analyzing historical deals, which led me to follow current transactions like..."

If asked about specific sectors - Use deal knowledge to demonstrate sector interest: "I'm particularly interested in healthcare M&A, which is why I followed Amazon's acquisition of One Medical..."

Consistency across answers reinforces your credibility.

Advanced Tips for Standing Out

1. Reference Deal Metrics

If you know them, mention key metrics:

This shows technical sophistication.

2. Discuss Deal Structure

If you understand the structure, mention it:

Example: "The all-cash structure was notable because it provided certainty of value for Activision shareholders during a volatile market period."

3. Mention Advisor Roles

If you know which banks advised:

- "Goldman Sachs and Morgan Stanley advised Microsoft, while Allen & Company advised Activision..."

This shows attention to detail and industry awareness.

4. Reference Comparable Transactions

Demonstrate market knowledge by connecting to similar deals:

This shows you're thinking about deals in context, not in isolation.

What to Do If You're Put on the Spot

Scenario: The interviewer asks about a deal you haven't prepared.

Don't panic. Here's how to handle it:

1. Buy time: "That's an interesting transaction. Let me think about what I know..."

2. Start with what you do know: Even basic facts show you're aware of the deal

3. Be honest about limitations: "I know the basic outline but haven't studied the details deeply. From what I understand..."

4. Show thinking process: Even if you don't know specifics, show analytical thinking about why it might make sense

5. Pivot if needed: "I'm less familiar with that one, but a similar transaction I followed closely was..."

Key Takeaways

Conclusion

"Walk me through a deal you followed" is an opportunity to demonstrate market awareness, analytical thinking, and genuine interest in investment banking. It's not about memorizing press releases—it's about showing you can think like a banker: understanding strategic rationale, identifying synergies and risks, and communicating complex transactions clearly.

The best candidates don't just follow deals—they analyze them critically, connect them to broader industry trends, and discuss them with the confidence of someone who genuinely cares about markets and transactions.

Start following deals today. Read the news daily. Pick 2-3 transactions to study deeply. Practice your delivery until it's natural. When the question comes—and it will—you'll be ready to impress.

Master all aspects of IB interview preparation: Beyond discussing deals, you'll need to answer hundreds of technical and behavioral questions. Download our comprehensive guide featuring 400+ questions with detailed frameworks—covering everything from M&A synergies to valuation multiples and every behavioral scenario you'll encounter.