Hertz Corporation Essay

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Hertz Corporation (A) Harvard Case Solution & Analysis | Recommend this | | Considering leveraged buyout Hertz in 2005, the complex, high-profile deals, and a good example of best practice in private equity. First of two parts, the Hertz LBO, taking the point of view of Clayton, Dubilier & Rice, the leader of the consortium of private trading shares to buy Hertz from Ford in the auction. Set in the final round of the auction, a pressing issue for the consortium is how to raise your previous bet. Reasonable rates should be based on how many of the private equity consortium could create by improving global operations Hertz, on the one hand, and a more efficient capital structure, on the other. Presents detailed descriptive information on both topics, but does not include detailed financial projections, to be formulated by students or supplied for the purposes of discussion, the teacher. “Hide
by Timothy A. Luehrman, Douglas C. Scott Source: Harvard Business School 18 pages. Publication Date: October 19, 2007. Prod. #: 208030-PDF-ENG Analysis: The value of the Hertz Corporation calculated using discounted cash flow method is approximately $ 6.1 billion, whilst the final revised offer is $ 5.6 billion. The final offer of $ 5.6 billion is quite reasonable for the Hertz Corporation as it was considering that it would not be able to receive $ 5.4 billion earlier. The price is little lower than $ 6.1 billion but is quite reasonable. The possible impact of synergies after making several changes had reduced the costs and increased the profitability of the company. This had increased the price or value of the company and thus increased to $ 6.1 billion. The factors which will create the synergies are the restructuring the organization. They are considering to reduce the airport operating expenses by $ 75 million per year. They are also considering to
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