FIN 502 -- Corporate FinanceHertz LBO Case

Questions:1. How much value do you expect to be created by the operating improvements and

capital structure changes envisioned by CD&R?

2. How would you explain the proposed transaction structure developed by CD&R and its partners? Specifically, how does it help or hinder the realization of anticipated sources of value in the deal?

3. Compare your anticipated sources of value to the illustrative projections contained in the file “Hertz (A) Selected Projections”. Use the latter, or your own set of projections, to value the sponsorsʼ equity in the proposed Hertz buyout.

4. How much should CCM bid on September 5?