Private equity isn't a new idea. "Leveraged buyout" is the old term for it. In the bad old days, the LBO company would issue tons of long-term debt, which the company would have to pay interest on. To be able to do that, they'd have to lay people off, close unprofitable businesses, and otherwise go on a starvation diet.

For these newer companies, the market cap probably isn't that high, so maybe the big bond issue doesn't happen.

>Grill maker Weber Inc. WEBR ... agreed to go private last year for $8.05 a share, well below its $14 IPO price less than 18 months earlier.

So, they collected a lot of money at $14, then collected more at $8, and in a few years when finances are better, they'll IPO again at $14. Nice business, except for the people who paid them $14 at the first IPO.