MULTIPLE SIGNS. Academic studies usually find that big mergers and acquisitions destroy shareholder value. One possible explanation is that chief executives buy at the top of the cycle, when animal spirits and share prices are high. It follows that doing deals during a crisis might be a better idea. Last year presented an inversion of that picture, according to Bain & Company. The consultancy’s annual M&A report showed that, even amid a global health and economic crisis, the median enterprise value to EBITDA multiple across all deals in 2020 was 14, compared with 13 in 2019. After the last financial crisis in 2008, deal multiples declined by 30% over two years, according to the report. The prevalence of technology-related deals suggests that it’s not just a function of lower EBITDA in lockdown-hit sectors. In other words, last year’s crop of acquirers is at risk of an acute case of buyer’s remorse. (By Liam Proud)