Material Adverse Change clause

Material Adverse Change clause definition - finance
A clause in a merger agreement that gives both parties remedies, or the right to cancel the merger, in the event that prescribed negative events occur. The negative events may be a sharp decline in sales or a regulatory change or problem that would seriously impair the ability of the merged company to function.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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