
Private Equity Acquisition
Private equity acquisition refers to the process where investment firms purchase private companies or take public companies private. These firms, known as private equity firms, invest capital from institutional investors and high-net-worth individuals to buy, improve, and eventually sell the companies for a profit. The goal is to enhance the company’s value through strategic management, operational improvements, or restructuring. After a few years, they typically sell the business or take it public again, aiming for a significant return on their initial investment.