Carve outs erode Australian Mac protections

Author: Ashley Lee | Published: 25 Sep 2014

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....