This paper analyses the role and meaning of private equity funds in the context of mergers and acquisitions (M&A) and their impact on the companies they take over. Although investments based on risk capital have been present in the country since the end of the nineties, Croatia is just starting to use the potential of this form of financing to stimulate economic development. The goal of this research is a deeper analysis of the role and importance of private equity funds in the context of the merger and acquisition process, with special emphasis on a critical review of the selected transaction and the evolution of the target company's operations before and after the takeover itself. This research investigates specific aspects of the influence on the strategy and success of the company and emphasizes that private equity funds are not only financial investors, but that they actively participate in supporting business expansion and further transformation of the company. Overall, the paper contributes to a better understanding of the role of private equity and their key role in M&A processes through a detailed analysis on the example of the takeover of the IN2 by Constellation Software. In addition, this paper also presents the different stages of the M&A process, the participants in the transactions and the relevant market trends. All this is important for a better understanding of the dynamics of these complex operations. When analyzing the business of IN2 before and after the takeover, a vertical and horizontal analysis of financial statements were used along with the independent calculation of individual financial indicators. The research was carried out through the methods of analysis, compilation, description, synthesis, comparison, classification and deduction.