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Material Adverse Change Clause

Material Adverse Change Clause defined: A material adverse change clause is a contingency legal provision often found in mergers and acquisitions contracts and venture financing agreements that enables the acquirer (or funder) to refuse to complete the acquisition or merger or financing with the party being acquired (often termed, the “target”) if the target suffers such a change.[1]

Above is a definition for “Material Adverse Change Clause” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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