How do private capital investment companies, such as Cerberus, select companies to invest in?

Cerberus buys nearly bankrupt/struggling companies and then turns them around. I'd like to know..

1 - How do such companies identify companies?
2 - How do they change the fortunes of the company around? Do they have set models for such work?

Thanks

One of the main things they look for is low debt on the balance sheet. They load up the target company with debt, and use this cash to purchase the target. There are various ways to profit from the transactioin. The company can be broken up and the various parts sold (the parts are more valuable then the whole). or if they decide to operate the company, a hard nosed administration is installed, and cost are cut to the bone to maximise profits. The name of the game is to get the greatest ROI possible.

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　　Earn Money 　　Direct Investment 　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt

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