Due Diligence & Legal
Material Adverse Change (MAC) Clause
A contractual right allowing the buyer to renegotiate price or walk away if a significant negative event impacts the target between signing and closing.
Buyer Example
During a 90-day signing-to-closing gap on an ₹18 Cr Kanpur leather goods manufacturer acquisition, the buyer's MAC clause is triggered when the largest export customer (35% of revenue) terminates its contract — letting the buyer renegotiate price down by ₹4 Cr before closing.