Material Adverse Change or Effect

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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 ?
But the company said that losing the case would have a material adverse effect.
Competitive Impact Analysis The Board will also conduct a competitive impact analysis when considering an operational or a legal change, such as a change to a price or service or a change to Regulation J, if that change would have a direct and material adverse effect on the ability of other service providers to compete effectively with the Federal Reserve in providing similar services due to differing legal powers or constraints or due to a dominant market position of the Federal Reserve deriving from such legal differences.
Scanner does not believe that this Stipulation will have a material adverse effect on its business or prospects.
Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing; a deterioration of general economic conditions or the demand for housing in the Company's market areas; legislative or regulatory changes; adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the loss of key personnel; significant increases in competition; and the possible dilutive effect of potential acquisitions or expansions.
The Company believes that the termination of the MDA will not have a material adverse effect on ADA-ES' business or results of operations.
Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG's consolidated financial condition, operations or liquidity.
We can give no assurances that we would be successful in any litigation or that such litigation would not have a material adverse effect on our business, financial condition and results of operation.
Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG's consolidated financial condition, operations or liquidity.
The company had strong inventories of deicing salt when the strike began, so the strike is not expected to have a material adverse effect on the company's 2006 annual financial results.
If PMI purchases only the minimum volumes stated in the Confirmation, Penn Octane's and Rio Vista's revenue would be significantly lower than actual revenue during the prior comparable period, which would have a material adverse effect on the financial condition and results of operations of Penn Octane and Rio Vista.
If PMI purchases only the minimum volumes stated in the Confirmation, Rio Vista's revenue would be significantly lower than actual revenue during the prior comparable period, which would have a material adverse effect on the financial condition and results of operations of Rio Vista.
Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on the Company's business, financial condition and results of operations.
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