Material Adverse Change or Effect
(redirected from MAC Clause)Material Adverse Change or Effect
Many mergers and acquisitions contracts include a material adverse change clause that allows a company to renegotiate or walk away from a deal if the other company or its subsidiaries announces a significant event that may negatively affect its stock price or operations. See also materiality.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Material Adverse Change or Effect
A clause in some merger and acquisition contracts allowing the acquiring to cancel a deal before it is finalized if material information is revealed that negatively impacts the target company's stock price. See also: Due diligence.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved