Repackaging into private equity is when a private equity firm acquires all the shares of a ailing public company and modernizes the company in hopes of making it more profitable.
If the repackaging into private equity transactions is successful, the private equity firm may re-list the company on the stock market as part of an initial public offering (IPO).
The capital used to buy a repackaging company is most often borrowed money, which is commonly known as a leveraged buyout.