Private equity firm Clayton, Dubilier & Rice (CD&R) is preparing a bid for leading US car rental agency Hertz. By replacing Hertz's top managers, improving capital management and driving down operating costs, CD&R sees an opportunity to nearly double EBITDA. However, the turnaround involves significant risks, which CD&R must weigh in preparing its bidding stategy. Students are required to assess and value the business, evaluate a post-acquisition operating turnaround plan requiring new leadership, select a financial structure to mitigate significant cyclicality, and craft a winning bidding strategy in the context of a competitive auction. Please visit the dedicated case website "https://cases.insead.edu/turnaround-of-hertz/" to access supplementary material.

In 2011, Ingersoll-Rand (IR) decided to divest its refrigeration equipment subsidiary, Hussmann International. However, the routine auction process for the non-core asset went awry when both Hussmann's performance and external finance markets weakened significantly during the due diligence period. IR's agent, JP Morgan, sought interest from potential buyers and focused on a few leading buy-out firms that submitted bids. After not seeing eye-to-eye with the initial auction winner, Ingersoll-Rand engaged exclusively with a lower bidder, the private equity firm Clayton, Dubilier & Rice. The challenge for CD&R is to develop a deal structure that can meet both parties' needs, offering enough value to Ingersoll-Rand to keep them from walking away, yet taking into account the increased riskiness of Hussmann's recent performance to justify CD&R's valuation. The student takes the perspective of CD&R. Please visit the dedicated case website http://cases.insead.edu/hussmann to access supplementary material.

Mekong Capital, a private equity firm based in Vietnam, is considering exiting its stake in restaurant chain operator Golden Gate. Despite robust growth, Golden Gate's profitability is lagging. Students are asked to evaluate the best means of exit and whether operational improvements are required to attract buyers or create the foundation for a successful IPO. Please visit the dedicated case website http://cases.insead.edu/mekong-capital to access supplementary material.

Chinese automobile manufacturer Geely Automotive (Geely) bought the manufacturer of the iconic London taxi cab from its bankrupt British parent company. The manufacturer’s sole product, the TX4, was a highly specialized taxi vehicle ideally suited for taxi work. It included many features for disabled passengers such as a power-operated wheelchair ramp and a wide rear passenger door. However, the vehicle cost more than twice as much as its competitors and demand was not enough for successful mass production. On the one hand, increasing awareness of disability rights in most developed nations suggested that Geely would have an opportunity to take the TX4 worldwide with an aggressive promotional campaign, and would benefit from cheap production costs in China. On the other hand, transportation network companies such as Uber and Lyft seemed to be pushing the entire taxi industry towards extinction.

Chinese automobile manufacturer Geely Automotive (Geely) bought the manufacturer of the iconic London taxi cab from its bankrupt British parent company. The manufacturer's sole product, the TX4, was a highly specialized taxi vehicle ideally suited for taxi work. It included many features for disabled passengers such as a power-operated wheelchair ramp and a wide rear passenger door. However, the vehicle cost more than twice as much as its competitors and demand was not enough for successful mass production. On the one hand, increasing awareness of disability rights in most developed nations suggested that Geely would have an opportunity to take the TX4 worldwide with an aggressive promotional campaign, and would benefit from cheap production costs in China. On the other hand, transportation network companies such as Uber and Lyft seemed to be pushing the entire taxi industry towards extinction.