Other private equity or real estate firms buy these assets, working to improve their quality and cash flow before selling them again at a higher price.

WSJ: Love Among the Ruins

This shareholder also expressed concern that Vodafone would use the cash proceeds from such a deal to buy assets in Europe of lesser quality and less-reliable cash flow than the No. 1 U.S. mobile-phone operator.

WSJ: Verizon Talks Tough to Vodafone

He soon developed a knack for buying cheap, fixer-upper cable systems, raising quality and prices and plowing the cash flow into more acquisitions.

FORBES: "We're On A Collision Course"

Another quality IAC likes in acquisition targets is cash flow.

FORBES: Barry Diller's IAC Bids $300 Million For About.com As Demand Media Circles

As the gap between low-quality and high-quality borrowers grows, more suppliers will experience cash flow problems.

FORBES: Written by By Drew Hofler

In telecoms, for instance, private-equity firms are mostly trying to buy established firms often former national monopolists that, while they might be threatened by internet telephony, have strong cash flow, physical assets and plenty of scope to improve the quality of management.

ECONOMIST: Private equity and technology

The earnings-quality grade rewards companies for having high sums of operating and investing cash flow relative to reported earnings (Cisco).

FORBES: A Matter of Trust

But high-quality dividend paying stocks tend to be much more resistant to market downturns and you receive a monthly cash flow while you are waiting.

FORBES: More themes for the coming year