Hertz & Dollar Thrifty An Introduction to DCF

This case examines the process behind Hertz's attempted acquisition of Dollar Thrifty. Hertz Global Holdings (Hertz) is a car and equipment rental company based in Park Ridge, New Jersey. Walter Jacobs started the company in 1918 in Chicago and sold it in 1923 to John Hertz, who renamed it Hertz Drive-Ur-Self System. Over time Hertz went through several owners and has been publicly trading on the New York Stock Exchange since November 2006. The company has 32,000 employees, 8,500 car rental locations, 300 equipment rental locations and provides services in 150 countries. For the full year 2011, it reported revenue of $8.3 billion and profits of $176 million. Dollar was founded in 1965 and was originally called Dollar A Day Rent A Car. Its main focus is on value-oriented customers in the airport rental market and it is often seen as a premium brand in the value segment. The company has 570 rental car locations in more than 60 countries, including more than 260 in the United States and Canada. Thrifty was founded in 1958, caters to a less upscale segment than Dollar and typically offers lower prices. The company has over 1,000 locations in 70 countries and went public in 1987. This case is a shortened version of F-906-E case and comes with a preparation sheet number FP-356-E.