Business Combinations
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- Date Submitted: 08/08/2013 04:53 AM
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Business Combinations
Avis Car Rental
As the CEO of Avis Budget Group, INC. the need for a merger is great. In this day in age people are traveling more and more, but they are building again too. Operating at the status quo will not cut it anymore. The time for growth is now.
Method
After careful consideration and extensive research in the historical earnings evaluation it has become obvious that this deal will be good for Avis. It is well known that the $1 billion merger that brought Avis Europe car rental company together has allowed the business to compete nationally and internationally on a scale of unprecedented proportions. As the historical earnings show Hertz boost a sizable revenue on average of $7.9 billion. There was many different ways to research Hertz however, looking at the basic numbers it seems like a good idea to move forward with this deal. Avis has been looking into Hertz for many years. It has been a tough battle to gain their attention since other competitors like Enterprise has also been trying to again them.
Buy acquiring Hertz a few things will take place. The first synergy taking place will be the acquisition of their rental car fleet. In 2011, the revenue from that alone was reported as $6.9 billion. Adding this to Avis's rental car fleet will do nothing but great things. The second synergy is the addition of Hertz's amazing equipment rentals that can bring another $1.2 billion in revenue. By offering Hertz the chance to merge with Avis as an equal it will bring about two more synergies. One being that both stocks should rise in the market increasing both companies overall worth and second being that employees with have a greater chance of advancement within the two companies. A fifth synergy is also on the table with the chance of higher pay for employees. This synergy is dependent on several things such as the growth of the companies and the market.
Requirements
The merger will be painless and pretty fast. Seeing that...
Avis Car Rental
As the CEO of Avis Budget Group, INC. the need for a merger is great. In this day in age people are traveling more and more, but they are building again too. Operating at the status quo will not cut it anymore. The time for growth is now.
Method
After careful consideration and extensive research in the historical earnings evaluation it has become obvious that this deal will be good for Avis. It is well known that the $1 billion merger that brought Avis Europe car rental company together has allowed the business to compete nationally and internationally on a scale of unprecedented proportions. As the historical earnings show Hertz boost a sizable revenue on average of $7.9 billion. There was many different ways to research Hertz however, looking at the basic numbers it seems like a good idea to move forward with this deal. Avis has been looking into Hertz for many years. It has been a tough battle to gain their attention since other competitors like Enterprise has also been trying to again them.
Buy acquiring Hertz a few things will take place. The first synergy taking place will be the acquisition of their rental car fleet. In 2011, the revenue from that alone was reported as $6.9 billion. Adding this to Avis's rental car fleet will do nothing but great things. The second synergy is the addition of Hertz's amazing equipment rentals that can bring another $1.2 billion in revenue. By offering Hertz the chance to merge with Avis as an equal it will bring about two more synergies. One being that both stocks should rise in the market increasing both companies overall worth and second being that employees with have a greater chance of advancement within the two companies. A fifth synergy is also on the table with the chance of higher pay for employees. This synergy is dependent on several things such as the growth of the companies and the market.
Requirements
The merger will be painless and pretty fast. Seeing that...