The following video is part of our "Motley Fool Exclusive Interview" series. In this segment, Fool.com analyst Brendan Byrnes interviews author and Bloomberg reporter Jason Kelly about his recent book, The New Tycoons: Inside the Trillion Dollar Private Equity Industry That Owns Everything.

With European private equity firm Permira agreeing to buy Ancestry.com, and Staples and SUPERVALU having been rumored as possible P/E targets as well, the question arises: What do private equity firms look for in companies? In the following video, Jason explains what these P/E firms find attractive about certain companies, and how they can use these characteristics to their advantage.