Common Mistakes in TS Interviews and How to Avoid Them
The most common mistakes candidates make in Transaction Services interviews and how to avoid them. Practical advice for Big 4 and boutique TS applications.
Transaction Services interviews are technically demanding and commercially nuanced. Even well-prepared candidates make predictable mistakes that cost them offers. This guide identifies the most common errors and explains exactly how to avoid them.
Mistake 1: Giving a Textbook Definition Without Deal Context
The question: "What is EBITDA?"
The weak answer: "EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. It is a measure of profitability..."
The strong answer: "EBITDA is the starting point for valuation in M&A. It removes financing structure, tax, and non-cash items to give a proxy for operating cash generation. In TS, we then adjust reported EBITDA for non-recurring, run-rate and pro forma items to arrive at a normalised figure — which is what drives the deal price at the agreed multiple."
The difference: the first is a definition. The second is an answer from someone who understands how TS actually works.
Mistake 2: Not Knowing the Equity Bridge
The equity bridge — EV to equity value via net debt, debt-like items and NWC adjustment — is asked in virtually every TS interview. Candidates who cannot walk through it coherently under pressure signal that they have not done the required preparation.
Practice narrating the bridge out loud until it takes less than two minutes and flows without hesitation.
Mistake 3: Accepting the First Version of the Question
Interviewers often give deliberately ambiguous questions to test how candidates handle uncertainty:
"Is this €500k payment a non-recurring item?"
The wrong response: immediately saying yes or no.
The right response: "That depends on the nature of the item. Can you tell me more about what the payment relates to? My answer would depend on whether it's supported by documentation, whether similar costs have appeared in prior years, and whether the circumstances are genuinely one-off."
This demonstrates analytical thinking and avoids premature conclusions.
Mistake 4: Vague Answers on Working Capital
Many candidates understand EBITDA adjustments but struggle with NWC. Common mistakes:
- Confusing NWC with cash flow
- Including cash and financial debt in the NWC definition
- Not knowing how the NWC target works in the SPA
- Unable to explain why seasonality affects the target
Prepare clear answers on: NWC definition, target calculation, and the price adjustment mechanism.
Mistake 5: Poor Structure Under Pressure
Case study exercises — particularly verbal ones — are where structure matters most. Candidates who start answering immediately, without organising their thoughts, give rambling and hard-to-follow answers.
Practice the habit: take 30 seconds to organise your response before starting. "There are three things I'd look at: first... second... third..."
Mistake 6: Generic Motivation Answers
"I want to work in TS because I enjoy finance and want more deal exposure" is not a compelling answer.
Strong motivation answers include:
- A specific deal or transaction you followed and what you found interesting about it
- A genuine connection between your prior experience (audit, controlling, etc.) and what you want to develop in TS
- Evidence that you have invested time in understanding what TS actually involves
Mistake 7: Not Preparing Questions for the Interviewer
"Do you have any questions for us?" is not an afterthought. It is an opportunity to demonstrate intellectual curiosity, deal interest and cultural fit.
Prepare two to three specific questions about the team's deal flow, specific sectors they advise, or professional development opportunities.
Conclusion
TS interview mistakes are largely preventable with thorough preparation and structured practice. The candidates who succeed are those who combine technical depth with clear communication and genuine deal enthusiasm.
The Transaction Services Interview Programme (€119.99, one-time) is built around avoiding exactly these mistakes — with mock interview formats, structured answer frameworks and real case studies. Enrol today.