Private equity is facing increasing scrutiny as concerns rise about its financial engineering practices. Experts suggest that the projected cash flows in private equity investments are often less than their valuations, leading to potential writedowns. This situation is causing unease among investors and regulators. The private equity bubble, characterized by inflated valuations, is likely to deflate soon, according to analysts. Markets today pose an existential question: Can there be a bubble in something if it has no price? In a GAAP sense, if the projected cash flows are less than the valuation, it leads to writedowns. Private equity is also seen as the real issue in M&A.