MAC clauses (Material Adverse Change)

Are attri­bu­ted to the finan­cial covenants. The abbre­via­tion for MAC stands for Mate­rial Adverse Change, which trans­la­tes as a ‘mate­rial adverse change’ in the basis and circum­s­tances of a tran­sac­tion. As a rule, the refe­rence point is the net assets, finan­cial posi­tion and results of opera­ti­ons of the target company at the time the agree­ment is concluded.