Wary M&A Buyers Up Use Of Performance-Based MAC Clauses

Law360, New York (October 22, 2012, 6:58 PM EDT) -- The frequency of material adverse change clauses and exclusions in acquisition agreements remains roughly the same as last year, but buyers in particular have begun to craft forward-looking provisions around specific kinds of risks, a new study says.

So-called MAC clauses are meant to offer an escape route for buyers in case circumstances change before a sale is finalized and to provide exclusions that insulate sellers from losing out on a deal if the impact of those changes stays minimal. Of the 300 big-ticket deals inked...
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