In private equity, the name of the game is to control as much revenue as possible with as little money down (equity) as possible. Then the goal is to improve the profitability of that revenue/those assets as much as possible. In late 2018, a leveraged transaction whereby NCI Building Systems (NCS) acquired Ply Gem ([[PGEM]]) and in the process made private equity firm Clayton, Dubilier & Rice the company's largest shareholder has created a publicly traded LBO that gives investors the opportunity to earn outsized returns in the coming years.
This transaction creates