The bidding process for Hertz began when William Ford Jr. inform plans to explore strategic alternatives for Hertz in April 2005. Two months after in June, an S-1 registration statement was filed setting up a dual track process that would result in a Hertz IPO should other sale prospects fail. This decision affects the bidding process in multiple ways. For one there is little time for the two bidding groups to come up with a price and resulting applyment. They are forced to act quickly and scrape a price that the Hertz management testament agree upon. If they dont do this, then Hertz will just go through with the IPO. This could lead to a set up price, since the bidding groups will do whatever it takes to assume the bid. Hertz is an interesting LBO candidate. After evaluating Hertzs go with history and financial statements, we believe that they would be a select target for a leveraged buyout. In the United States, Hertz is a top three competitor in the lease machine market in terms of revenues, mainly competing with Enterprise car rental and Avis. Plus, Hertz is currently the leader in the airport rental segment in the U.S. and Europe. This segment was estimated in 2005 to be most 79% of the total U.S. RAC revenues.
Moreover, Hertzs HERC segment rank third in terms of revenues and looked to hold this position as the industry rebounded. To continue, Hertz was listed in BusinessWeeks 100 virtually Valuable Global Brands in 2005 and every twelvemonth that it had been dirty for the honor and currently held rental car operations in 145 countries, giving the company an extremely high count of brand recognition. Some of this high brand equity whitethorn be attributed to consumer trust which spurs from Hertzs stable financial history. Hertz has produced a pretax profit each year since 1967 and had 7.6% mingled annual growth rate from 1985 to 2005, showing positive year over year growth in 18 of those 20 years. Moreover, the bidding group believed that an amount of... If you want to get a full essay, order it on our website:
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