The Certified Investment Banking Associate (CIBA) Program requires participants to complete a Strategic Investment Banking Project in order to graduate from the program. This plan is worth 100 points and accounts for 50% of the total grade within the program. Non-submission of this strategic plan will result in an automatic failing grade for the CIBA program. If you have any questions, please email us.
Once you have completed this project, please send it and your request to take your desired exam date at least 2 weeks before the scheduled exam date.
To schedule yourself for an exam date, this project must be received, completed, at least 2 weeks before the exam date. For example, to take the October 10th exam date, this project must be received (as well as a request to take the exam) no later than September 26th. When you’ve completed the project below, you can schedule your examination on the Examination Dates page.
Strategic Project Instructions:
Your Investment Bankers Group will be making a sell-side M&A advisory pitch to the CEO and CFO of CIBA Airways, a fictional US-based major passenger airline. The managing director of your bank’s transportation Investment Bankers Group has asked you to provide valuation guidance based on a comparable companies analysis and a precedent transactions analysis.
Using the skills that you have learned from this course’s textbook, study guide and video modules, please edit the Excel file that has been provided to you. You should keep in mind the following basic financial data about CIBA Airways; it had LTM revenue of $4.3 billion and LTM EBITDA of $540 million.
You will be sent the project template spreadsheet after registration. To complete the project, focus on the following specific tasks:
- The “ComparableCompanies” sheet shows a very basic template for a comps analysis with one comparable already provided. Please find 5 more comparables to add to the analysis. The comparables must be publicly-traded US-based passenger airlines with annual revenue of more than $2 billion. For consistency in grading your project, please use data that would have been available to a banker as of August 23, 2011 (share prices and SEC filings). Use any resources to come up with the comparables – your own knowledge, news articles, stock screeners, annual reports, etc. After choosing your comps, you should be able to find all of your information (other than share price) from public filings on www.sec.gov.
- The “PrecedentTransactions” sheet shows a very basic template for an M&A comps analysis with one transaction already provided. Please find 2 or 3 more M&A comps to add to the analysis. The comps must involve a publicly-traded target that was a US-based passenger airline with revenue above $2 billion; please only use deals that were announced between January 2008 and December 2010. Be resourceful when searching for the transactions, especially with online searches; it is very likely that you’ve heard of (or even been a customer of) these acquirers. After you find news of the acquisitions, all of the financial information can be found in public filings on www.sec.gov.
- Use your findings from tasks 1 & 2 to complete the “football field” graph on the “ValuationSummary” sheet.
If you are ready to join the CIBA program, and advance your career, register here: Register Now