# Material Adverse Change

*Corporate Finance & M&A — Finicade finance glossary*

A material adverse change clause lets a buyer walk away if something seriously damages the target between signing and closing. Courts interpret it extremely narrowly — a downturn affecting a whole industry usually doesn't count, and the bar has been described as durationally significant rather than merely large. Successful MAC invocations are rare enough that each one is studied as a landmark.

**Also known as:** MAC clause, MAE, material adverse effect

**Related terms:** [Mergers and Acquisitions (M&A)](https://finicade.com/glossary/mergers-and-acquisitions), [Break Fee](https://finicade.com/glossary/break-fee), [Representations and Warranties](https://finicade.com/glossary/representations-and-warranties), [Letter of Intent](https://finicade.com/glossary/letter-of-intent), [Due Diligence](https://finicade.com/glossary/due-diligence)

Source: https://finicade.com/glossary/material-adverse-change