Mergers and Acquisitions — When Sweet Turns to Sour

What could we expect to see in a recession? DeWese feels there will be a spike in bankruptcies, and the M&A circuit may see a drop off of as much as 20 percent to 25 percent. A company worth six times EBITDA may slip to 5.5, with much hinging on bank lending multiples. However, with favorable lending rates and pent up demand from both financial and strategic buyers, it’s still an atmosphere conducive to getting deals hammered out.