Got destroyed when an MD asked, ‘What if your WACC is wrong?’ after my DCF walkthrough. How do veterans pivot to strategic insights instead of recalculating on the spot? I remember seeing real interview transcripts here showing how to handle curveballs. Any tips on dissecting those examples to build flexible responses?
“wrong WACC” questions = hazing ritual. say “sensitivity analysis shows X valuation range” and stare them down. bonus points for mentioning private equity does this sober. transcripts are 90% fluff – focus on not crying
wait we get actual transcripts?? pls link! my group’s mock interviews are useless compared to real MD convos. need to see how they transition to strategy!
Key strategy: Treat ‘what ifs’ as invitations to discuss commercial judgment. Example response: ‘A 200bp WACC increase would lower our valuation by ~15%, but more importantly, it’d signal rising sector risk – we’d re-examine debt covenants in the model.’ Practice linking numbers to business decisions, not just formulas.
Curveballs mean they see your potential! Use phrases like ‘Great question – that highlights…’ to buy time. You’ve got this!
I printed out a transcript where the candidate compared WACC changes to airline turbulence – ‘You adjust altitude, not crash.’ Used that line when a VP grilled me. She nodded and moved to behavioral questions! Sometimes metaphors > math.
Analysis of 42 technical interviews shows 73% of follow-ups test conceptual understanding. Recommended framework: 1) Quantify the impact (“~12% valuation drop per 1% WACC increase”) 2) Strategic implication (“renegotiate acquisition premiums”) 3) Alternative methods (“compare IRR thresholds”). Pre-prepare 2-3 scenarios.