Operating Expenses
Also called OpEx · Operating Costs
Operating Expenses are the bucket that contains all General & Administrative (G&A), Sales & Marketing (S&M) and Research & Development (R&D) expenses. It is the bucket between Gross Profit and EBITDA on the Income Statement.
Why Operating Expenses matters in investment banking interviews
OpEx is where the synergy conversation lives. When an interviewer asks where a buyer would find cost savings in an acquisition, the answer is almost always in these three buckets — duplicate G&A, overlapping sales teams, consolidated R&D.