26560031 case study hertz corporation 130430125238 phpapp01

8/9/2019 26560031 Case Study Hertz Corporation 130430125238 Phpapp01

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Presented By: Raghav Bhatter, Shikhar Agarwal


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Deal Structure

CCM

Hertz Company Overview

Conclusion


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Ford Motor

Company

CD&R

CarlyleGroup

and MerillLynch

Hertz

Corporation


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Hertz

RAC

HERC

USA Europe

Region

O!On"airport#$% million car#

'()* +ln mar,etrevenue#

$-. large#tairport#

O!On"airport#$/0 #hare o themar,et

'$)* +ln mar,etrevenue#

1he third large#tcompany

'$)2 +ln revenue

1he ourthlarge#t company

'$*/ mlnrevenue


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Deal Structure

CCM


Conclusion


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PE investment Firm Founded in 197! "nvestments in #ore than $% &S and

Euro'ean Businesses!S'e(iali)ed in A(*uiring &nder#anaged +ivisions!


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Ameri(an Based lo-al Asset#anagement Firm!

Found in 197 -y $ 'artners as aBouti*ue investment -anking .rm!Began "nvesting as a Private E*uity

.rm in 199% and has invested more

than &S+$/ Billion in over 0$%investments!


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Founded in 1910 -y harles E #errillas an investment .rm!

#anaged Assets worth more than&S+2 3rillion -e4ore its a(*uisition -yBank o4 Ameri(a!


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345R /..*

Early 1223 (or! core US auto business was in trouble%

Monetizin Hertz

One step to improve (or! balance s"eet% (or! a!visors recommen!e! two trac,s4

56O (ile! in 7une

Sale o) t"e business 6roposal an! preliminary bi!s by

7uly

(or! ma!e con)i!ential )inancin an! operatin in)ormation% Hertz e0ecutives 5n)ormational meetins wit" potential buyers%

A)ter a mont" o) !ue !ilience CD&R i!enti)ie! several speci)ic

opportunities )or improvin operations%


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5owever, to go ahead with the +eal+6R needed more 'artners and it

a''roa(hed 3he arlyle rou' and#errill yn(h who were more thanha''y to -e a 'art o4 the +eal!


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H4R16

78 R5C On"airportOperating 49pen#e#

78 R5C O"airport#trategy

4uropean Op49 &8G&5

78 R5C Fleet Co#t#

78 R5C :on"FleetCap49

H4RC RO;C


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Deal 8tructure

CCM


Conclusion


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Hertz s"oul! be able to survive a severe business

!ownturn wit"out nee! to restructure or !e)ault8ta+ility

Hertz s"oul! be able to e0ploit )uture rowt"

opportunities wit"out "avin to re)inanceLi


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Deal Structure

CCM


Conclu#ion


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PE8grou's -id around 1/! -ln 4or

5ert)

Ford asks 4or a revised -id

# are (onsidering whether 1$-ln are still a 4air 'ri(e!!!


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e think!!!

!!!that a valuation o4 1$ -ln (an -e;usti.ed!

!!!# should go ahead with the deal!

5istory 'roves us right!!!


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"n


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3hank you 4or

your attention

Any *uestions

26560031 case study hertz corporation 130430125238 phpapp01

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