Material adverse change clauses are nothing new, but with the credit and stock markets in turmoil, it seems like they are showing up in more and more deals. This year, claims of material adverse change have forced the renegotiation of Home Depot Inc.'s sale of its HD Supply business and the take-private of Clear Channel Communications Inc., and reared up in Hexion Specialty Chemicals Inc.'s pending acquisition of Huntsman Corp. In this edition of Inside The Deal, Suzanne Stevens talks to Paul Bird, who co-chairs the M&A group at Debevoise & Plimpton LLP, about how MAC clauses might affect dealmaking in the future.
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