New York, NY. Dealmaking, particularly in the realm of very large transactions, has continued on a relatively brisk clip. This is according to the 15th annual Nixon Peabody M&A survey which studies material adverse change (MAC) clauses in acquisition agreements. The 2016 MAC Survey, released today, found that although the economy has shown many signs of marked improvement since the 2007-2008 financial crisis, the continued widespread inclusion of elaborate MAC clauses indicates the clauses have now become a permanent fixture in M&A deals.
Nixon Peabody’s analysis included the review of publicly filed acquisition agreements for transactions with values in excess of $100 million dates between June 1, 2015 and May 31, 2016. Nixon Peabody’s team of attorneys reviewed 278 agreements which included asset purchase, stock purchase, and merger agreements.
“This year’s survey suggests the uncertainty surrounding the swearing in of the first new president since the financial crisis is weighing on the minds of bidders, targets, and their counsel,” said Richard F. Langan, Jr., partner in Nixon Peabody’s Public Company Transactions practice. “The increase in the exception for MAC changes arising from larger political conditions seems likely attributable to questions surrounding the effects of Brexit and the U.S. election. We will continue to closely monitor how the dealmaking market responds to these, and other developments in the years to come.”
M&A Litigation Alert | 10.09.18