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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
Hertz Company Overview
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
Hertz Company Overview
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
Hertz Company Overview
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