What Private Equity Looks For in Companies

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.

Mitt Romney's time at Bain Capital has placed the private equity industry under the microscope over the past few months as we head toward the election. That might not be great news for Bain, but for individual investors, the election provides serious investment opportunities as we outline in our newest free report: "These Stocks Could Skyrocket After the 2012 Presidential Election." Simply click here to download your copy now and discover hidden ways to profit from the election, no matter who wins.