Moulton plans to identify some easy wins from the flurry of failing companies, take them over, change the management teams if necessary and the get the profit rolling in again. Once the companies have been turned around, which could take between two and three years, they are ripe for selling on, he said.
Moulton is putting 10 million pounds of his own cash into the firm's pockets, underscoring his confidence in the strategy.
"Not only can you make a lot of money, but it’s actually very good fun and quite satisfying because you are taking companies from near death to prosperity… Also you can save a lot of jobs and see a lot of people move from near despair to feeling pretty cocky about themselves," he said.
Turnarounds come in every type, but the "mind-bogglingly difficult" ones like the UK Post Office are best avoided, he said.
"You could try and turnaround the Post Office and you can climb Mount Everest in your underpants without oxygen. They are feasible activities, but they’re not recommended," he said.
Better Capital is "sector agnostic," but favors areas like building products and is cautious of deals in the automotive components arena.
"Every situation is incredibly different and we see such a diversity that sometimes you can concoct a deal in even the most apparently unfavourable sector," he added.
Moutlon said he is expecting a queue of people outside the door of Better Capital when companies really start to feel the pinch and said many deserving cases will fall through the cracks and go bankrupt.
UK Is a 'Turnaournd'
One turnaround that is currently troubling Moulton is the UK itself. The country's finances are in such a bad state that it has all the characteristics of a failing company, he told CNBC.com.
"If it was a company, you’d take it out and shoot it… We’ve had eleven consecutive years of real increase in overheads, we’ve had twenty-odd years of consecutive negative cash flow," he said.
If Better Capital was to take control of the struggling UK economy, the first thing it would do is change the management, Moulton said.
"Then you have to actually take a choice, do you want short and horrible or long and horrible. And being of a turnaround nature, I’d go for the short and horrible," he added.