Many mergers and acquisitions contracts include a material adverse change clause that allows a company to renegotiate or walk away from a deal if the other company or its subsidiaries announces a significant event that may negatively affect its stock price or operations. See also materiality.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). material adverse change or effect. Retrieved September 21, 2026, from http://smartdefine.org/material_adverse_change_or_effect/definitions/1157957 |
| Chicago | Barry Goldsmith. 2010. "material adverse change or effect" http://smartdefine.org/material_adverse_change_or_effect/definitions/1157957 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, material adverse change or effect, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/material_adverse_change_or_effect/definitions/1157957>. |
| MLA | Barry Goldsmith. "material adverse change or effect" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/material_adverse_change_or_effect/definitions/1157957> |