The effectiveness of material adverse change
clauses (Mac) are being whittled away in Australian public
M&A, revealed a recent report.
Herbert Smith Freehills’ 2014 public
M&A report, released on Thursday, revealed that 80% of
conditional deals in Australia include a Mac – but
carve-outs are more common than ever.
Macs typically grant an acquirer the right to pull out of a
deal in the event of a significant or unforeseen change,
typically involving the target....