Bile salts emulsify fats. They have one end which is soluble in fat(lipophilic) and one end which is soluble in water(hydrophilic).When in an aqueous medium they arrange themselves with their lipophilic ends in the fat and the hydrophilic ends sticking out into the aqueous layer.This prevents fat droplets from sticking together and forming large fat droplets leaving tiny droplets called micelles suspended in the aqueous medium.Fatty acids are carried as micelles in the lumen of the intestine.Micelles are structures that are made of monoglycerides and bile salts 4-7nm in diameter.When they reach the epithelial cells of the ileum, the micelles break down, releasing the fatty acids for absorption.The fatty acids and monoglycerides diffuse into the epithelial cells from the lumen of the ileum.Inside the cells the monoglycerides and fatty acids are transported to the smooth endoplasmic reticulum where they are combined to form triglycerides.