I agree that businesses that have unproductive assets become targets for PE takeover. Typically these are small businesses that have kept their assets and business together, without separating them. At some point the value of the asset exceeds the value of the business and it becomes ripe to be bought out, sold for parts, and closed.
Thus keeping them bound together makes things worse for employees and customers, not better.
Separating them makes it worse for creditors. Specifically creditors are less likely to institute bankruptcy if there are no juicy assets to liquidate. Most small businesses can survive a cash squeeze, at least for a short while, as long as creditors don't preemptively move to shut it down.
Equally, business owners are less tempted to over-extend if there is less "equity in the business". Obviously they can still borrow against the asset, but that's then a conscious decision.
Of course large companies know all this, and do it. Yhe way to protect small businesses from predatory buyouts or creditors is to educate small business owners.