Kept getting feedback that my DCF explanations are ‘technically sound but lack narrative.’ Tried following standard STAR format but interviewers seem bored. How do experienced bankers weave compelling stories around valuation methodologies? Any examples of what separates memorable answers from textbook recitations?
newsflash - they’re bored bc DCF is boring. spice it up by adding how wrong you were first time. ‘I assumed 2% perpetuity growth like a textbook moron till reality hit’ gets laughs AND shows growth. thank me later
my mentor said link to real deals? like ‘applied this in our energy deal when oil prices tanked’ but idk any real deals… maybe use community case studies??
The magic is in context-setting. Start with a specific deal’s strategic dilemma. “When valuing a family-owned brewery acquisition, we had to balance sentimental value with craft beer saturation risks - here’s how our DCF assumptions reflected that balance.” Shows application, not just theory.
You’re so close! Try adding industry-specific color - even if hypothetical. VPs love creativity anchored in logic!
2023 recruiting data shows 73% of successful DCF answers incorporate 1) industry-specific WACC rationale 2) sensitivity analysis storytelling 3) alternative method cross-check. Structure: 1 min setup context, 2.5 min core mechanics, 30s bridge to LBO comparison.