Operating Improvements and Capital Structure Changes Envisioned by CD&R - Case Study Example

Throughout the history of business management, it has been seen that good business is built with the help of proper decision-making ability and obviously with some positive acquisition. Today CD&R is among the most respected private equity firms in the worldwide business scenario.          

Acquisition of the Hertz motors is a very promising decision as Hertz is one of the big names in the car rental business. Hertz offer a fantastic customer experience in providing the best cars and comfort as far as car hire is concerned. The combination of great brand value and the potential financial efficiencies made Hertz one of the most profitable business leaders in the business. Hertz business was matured and profitable enough to be acquired. The initiative from the CD& R financial partners David Wasserman, Micheal Baiarz and Nathan Sleeper on a capital structure which would have lowered the Hertz capital cost was really beneficial for CD&R. The Hertz was a potential investment opportunity as Hertz business was mature and competitive in all the countries where they had their business fleets.    

The CD&R’s Consortium is well-known as CCM which includes The Carlyle Group and Merrill Lynch Global Private equity; both of them are the most dominating companies in the business scenario.