Many private equity firms are perfectly happy to extract cash from viable businesses and bankrupt them. They have an asset, and they want to convert it to some other kind of asset. It often has very little to do with whether the business is failing.

Essentially, it's arbitrage. "Can be arbitraged" is not the same as failing. You can talk about things like "efficiency", but the problem with that is that the metric being used to measure efficiency is laughably simplistic - deliberately so, it's just a way to justify socially irresponsible behavior.