The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Deals that changed the market in 2006: Cerberus FIM Investors’ acquisition of GMAC

The $7.4 billion deal showed that anything is possible for a determined private equity firm with an experienced operations team.

Six deals that changed the market in 2006

Deal type: Cerberus FIM Investors’ $7.4 billion acquisition of a 51% stake in General Motors Acceptance Corporation
Adviser: Citigroup
Date: April 2006

When GM made the decision to sell a majority stake in its General Motors Acceptance Corp (GMAC) unit in early 2003 it had one clear objective: it wanted to sell the subsidiary to a highly rated (by which it was assumed financial) institution in order to preserve its investment-grade rating. The deal that was eventually struck between GM and a consortium headed by Cerberus Capital Management achieved neither of those things: GMAC was sold to a private equity buyer in a deal that left the company with a double-B rating. But this deal was a stark illustration of the flexibility and buying power that private equity players have been afforded through their access to cheaper funding and greater leverage.

The successful sale of GMAC was never going to be easy. As rating agency Moody’s pointed out at the beginning of 2006: “We believe that there are very few enterprises worldwide that have the strategic interest, credit profile and financial wherewithal to purchase a controlling stake in GMAC.”

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree