Bidding for Hertz: Leveraged Buyout Case Solution

This Case is about FINANCIAL ANALYSIS, MERGERS & ACQUISITIONS

PUBLICATION DATE: February 17, 2009 PRODUCT #: UV1056-PDF-ENG

The Ford Motor Company had actually put Hertz, an entirely owned subsidiary, up for sale in April 2005, and in June 2005 Hertz got in a dual-track procedure, that would result in its sale or a preliminary public offering (IPO). The case supplies comprehensive pro forma forecasts for the deal that permit students to analyze the synergies of the offer and approximate a value and quote for Hertz. For teachers wanting to provide students a preface of the function and practices of personal equity, we suggest integrating the Hertz LBO case with its buddy case, “Investing in Sponsor-Backed IPOs: The Case of Hertz” (UV1409). The Hertz IPO was revealed in July 2006, simply 7 months after the LBO was finished.

Bidding for Hertz: Leveraged Buyout Case Solution
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