It's an issue in market information where regulation can't really work [1]. Vendors have a brand. They establish the value of the brand such that purchasers have a signal that they aren't going to be ripped off. For example you can be pretty sure coca-cola isn't going to cut costs to the point where they don't care about putting poison in the bottle - and you don't need regulation to know they won't do it. Zeus-Cola? Brand means nothing. On holiday in an unregulated land when it's only just launched do you advise your family it will be completely safe to drink?
An entrepreneurial team comes along and puts their hearts and souls into setting up a business and establishing the brand with some high quality product. That brand becomes worth something. The easiest way to monetize that brand is to use it for a con job. It sucks.
You thought you were getting quality, it's what you paid for, well you're getting cheap and nasty and we're taking excess profit for as long as the brand lasts. You took the bait and got the switch. Usually (but not always) the original entrepreneurial team is unwilling to do this, because they believed what they were doing was something more than just making money. Private equity is just making money and are extremely willing to do this.
[1] I prefer unregulated markets as far as the alternative is usually worse. There are obvious exceptions at the extreme ends (monopoly, health and safety, fraud, adverse externality etc.) How far away from the extreme you think regulation stops working is a lot of interesting case-by-case discussion where intelligent, reasonable and informed people can disagree in good faith improving their understanding and the quality of suggested policy in the process. It would be nice to see a bit more of it in the media!