Task:

BA has identified an opportunity for growth and wants to get into the low-cost carrier market in Eastern Europe. They are looking at either building it themselves or acquiring a competitor.

As an Investment Banking Analyst, what recommendation would you give based on the analysis of two potential companies they could acquire and layout the deal life cycle.

Example (Ryan air, Wizz Air, Blue Air)

Instructions:

1.Research the low-cost carrier market in Eastern Europe and the key competitors operating in this market.

2.Use relevant valuation methodologies to compare two potential companies that British Airways could acquire

3.Using your research and analysis, create a recommendation for British Airways in PowerPoint format. Ensure you highlight the deal life cycle within this.

Core deliverables:

A one-page deal summary including:

Key statistics on the size of the low-cost carrier market in Eastern Europe

3 competitors in the low-cost carrier market in Eastern Europe and some core financial metrics

Top-level business model overview for the largest competitor in the market (i.e. how do they generate revenue)

The 5 key strategic rationales for the decision to enter the low-cost carrier market in Eastern Europe

A one-page comparables summary including:

Key transaction comparables

Key trading comparables

Two key target acquisitions and their estimated market value

Outline the key next steps as part of the deal lifecycle including:

The stages of the deal lifecycle and what would be included within each

The next steps for British Airways and the target of the acquisition candidates