Given their rapid growth and inability to scale production, this outcome was inevitable. LAB was at an inflection point, with two options: load the company with debt to scale production and hire the required experts on their own, or bring on a PE partner. By bringing on a PE partner, they get their windfall, experts in-house, and access to cheap capital to help them scale. They diversify the risk while taking a reward.
I've seen numbers in the 12-14x profit range for the $200M valuation. With that level of multiple, this isn't going to be a Toys R Us type of pillage. Most of the negative PE stories involve vulture funds buying established companies and stripping them for parts. LAB lacks the necessary footprint and assets for that model to be effective.
To make this deal work, L Catteron needs to 2-3x revenue while holding or improving margins. Having just waited 12W for my custom DF3, the low-hanging fruit is to inject significant investment into scaling production to get the lead time down to 2-3 weeks. In doing so, they will also be able to fulfill wholesale orders for big box stores. The other part of this is that the capital and production will enable them to develop new models faster without compromising their current lines. More products, higher "stock" availability, and faster "custom" delivery times are how they accomplish that.
Overall, I'm excited to see where they can take LAB over the next few years. Yes, there is a chance they'll implode, but I don't think those chances are any worse than if they had stayed solo and let the current production issues drive them into the ground, or had decided to load the company with debt and been left holding the bag themselves.