easy · Private Equity & LBOs

What does the 're-rating' of a business refer to in private equity?

1. Changing the company's fiscal year-end for tax reporting purposes.
2. The annual audit process performed by an independent accounting firm.
3. Refinancing existing senior debt with a new loan at a lower interest rate.
4. The transition of a company to a higher valuation multiple due to improved fundamental characteristics.

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