Case Study Hertz Corporation
Case Study Hertz Corporation
Case Study Hertz Corporation
2007
Case Study:
The Hertz Corporation
Presentation: Mariano Mateos, Ricardo Velilla, Elias Völker
The Bid for Hertz
Deal Structure
Financial Engineering
Conclusion
Ford Motor
Company
Hertz
Corporation
Other PE
CD&R
firms
USA Europe
Region
Casestudy: The Hertz Corporation 13.12.2007 5
Agenda
Deal Structure
Financial Engineering
Conclusion
YEAR 2005
Early 2005 Ford core US auto business was in trouble.
Monetizing Hertz One step to improve Ford balance sheet.
Ford advisors recommended two tracks:
IPO Filed in June
Sale of the business Proposal and preliminary bids by
July
Ford made confidential financing and operating information.
Hertz executives Informational meetings with potential buyers.
After a month of due diligence, CD&R identified several specific
opportunities for improving operations.
US RAC On-airport
US RAC Fleet Costs
Operating Expenses
Deal Structure
Financial Engineering
Conclusion
The Hertz
Corporation
OpCo FleetCo
Deal Structure
Financial Engineering
Conclusion
1. FleetCo
Debt
4. Assu
US
Casestudy: The Hertz Corporation
Inte
13.12.2007 18
Agenda
Deal Structure
Financial Engineering
Conclusion
Corporate EBITD
Casestudy: The Hertz Corporation 13.12.2007 21
What are the value drivers?
US RAC On-airport
US RAC Fleet Costs
Operating Expenses
1. Further Savings
Priced in
Casestudy: The Hertz Corporation 13.12.2007 24
O
Modified valuation
We think...
Any questions?
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