If this was true, this PE strategy would eventually stop working as business buyers realize PE businesses aren't good to buy, so the PE firm can't sell them, and it becomes unprofitable to run the whole playbook.
But generally PE does greatly improve 'efficiency', meaning they take for themselves (the owners) any 'extra' value that used to accrue to customers, lenders, employees, etc and the company becomes exactly as painful to deal with as market pressures allow.
But generally PE does greatly improve 'efficiency', meaning they take for themselves (the owners) any 'extra' value that used to accrue to customers, lenders, employees, etc and the company becomes exactly as painful to deal with as market pressures allow.