« Back to Glossary Index

A Material Adverse Change is a change in the status or operation of a company which significantly alters the value or position of the company. It is often referred to in the context of a merger or acquisition when the buyer of a company must wait a period of time between signing a purchase agreement and closing, and must ensure that there are no changes in the operation of the target company which would negatively impact the terms of the deal.

« Back to Glossary Index