First, the Liabilities & Equities side is adjusted - the new debt is ADDED on, and the Shareholders' Equity is "wiped out" and replaced by however much equity the private equity firm is CONTRIBUTING.

On the Assets side, Cash is adjusted for any cash used to finance the transaction, and then Goodwill & Other Intangibles are used as a "plug" to make the Balance Sheet balance.

Depending on the transaction, there could be other effects as well - such as capitalized financing FEES added to the Assets side.

First, the Liabilities & Equities side is adjusted - the new debt is added on, and the Shareholders' Equity is "wiped out" and replaced by however much equity the private equity firm is contributing.

On the Assets side, Cash is adjusted for any cash used to finance the transaction, and then Goodwill & Other Intangibles are used as a "plug" to make the Balance Sheet balance.

Depending on the transaction, there could be other effects as well - such as capitalized financing fees added to the Assets side.