In the private equity space, the middle-market holds huge profit potential. There are many firms looking for capital, especially in light of the tough credit markets. At the same time, there are company founders who are looking to exit their business and plan for retirement.

One of the top private equity players in the middle market is MidOcean Partners. And, this week the scored a big win. That is, they hired Robert Miller as its Chairman.

A private equity firm, MidOcean Partners, has agreed to shell out $450 million to buyout Sbarro, which has built a strong business in quick service Italian food. There are more than 1,000 retail locations.

In fact, over the years, Sbarro has undergone multiple financial-engineering transactions. In the mid-1980s, the company went public. However, by the late 1990s, the company was taken private – as the company's founding family (the Sbarro's) paid about $650 million for the firm.

As for the MidOcean transaction, the Sbarro family will no longer be a part of management. The company was founded in 1956.

But the Sbarro name will remain – which is, of course, a strong brand. MidOcean wants to focus on building more company-owned stores, which should help to insure quality. This has been a successful strategy for companies like Starbucks.

What's more, MidOcean has the capital resources to pull off this strategy. With saturation of the pizza market in the US, MidOcean is likely to move more aggressively into foreign markets.

In other words, it looks like the Sbarro family is making a smart move. It's definitely a tough decision – but, with an owner like MidOcean, the family legacy is likely to continue for years to come.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.