These thinly capitalized private equity groups are in the business of scooping up "distressed assets". Being the only buyer to show up and getting something for less than it's worth.
The bigger story is that all of these business are up for sale and there are no better buyers. Our population is aging, the people who founded and run these private businesses are retiring en masse and cashing out. They don't have kids who want to run these businesses, and the workers of the business don't have the cash to buy it for themselves.
So part of this is a story of inequality - these businesses were accruing lots of capital value faster than even top earners could save to buy them.
But also, there is a clear and obvious policy fix - provide incentives for business owners to hand down their business instead of cashing out. Make it easier to provide long-term loans and financing for small-party buyers.