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.

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.
References in periodicals archive ?
A Brexit-related MAC clause would only be needed if a purchase deal was made to acquire Charter Court prior to 23 June 2016, the date of the UK referendum, although a number of businesses are delaying auctions until after the poll.
In contrast, the vast majority of US deals used a MAC clause.
Some acquiring companies have utilized the MAC clause to walk away from a deal because the target became less attractive during the interval period (Herman and Piereck, 2010).
QNB will not use the MAC clause it said in its conference call and already pencilled in a potential fall in the EGP/USD to 7.
the available US swing line that does not have a MAC clause, which is
A MAC clause is a clause typically requested by the purchaser of a business to be inserted into a sale and purchase agreement (SPA).
In 2007, a MAC clause led to a reduction in the sale price for
will not only permit a court to indulge its tendency to interpret a MAC clause narrowly, but will affirmatively count against an inclusion of that topic in the MAC definition.
Bank of America shareholders approved the agreement with the MAC clause December 5, 2008.
As previously discussed, the MAC clause is something often relied upon as an exit strategy by buyers.
Another way to navigate the lending process with some order is to lock in the entire loan coupon by effectively buying out the MAC clause language in the loan agreement.