When a private equity firm buys a division from a business, what do they do with it?

I’m trying to figure out what it would mean if Panasonic sells it’s Sanyo digital camera division to a private equity firm called Advantage Partners? What becomes of the division?

Chosen Answer:

A private equity firm is basically an investment manager. What these firms do is buy undervalued companies or businesses and improve them so that they can sell them for a profit. This article might be able to help you: http://www.wisegeek.com/what-is-a-private-equity-firm.htm. You can also find out more by visiting seedoutsourcing.com.
by: Mr.King
on: 23rd December 12