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Material Adverse Effect Clauses

The M&A Lawyer

Interestingly, while M&A lawyers often get fairly animated in negotiating whether to include the word “prospects” in the MAE definition, they do not similarly struggle with inclusion of the “could reasonably be expected to have” language, which should be viewed by a court as having the same effect. 2d 14 (Del.

M&A 130
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MAEjor Ruling: Delaware Court of Chancery Finds Target Suffers Material Adverse Effect and Acquirer Could Back Out of Transaction

Cooley M&A

Vice Chancellor Laster distinguished Akorn from Hexion and IBP , noting that in those cases “the buyers had second thoughts because of problems with their own businesses spurred by broader economic factors.” Huntsman Corp. , 2d 715 (Del. 2008) and In re IBP, Inc. S’holders Litig. , 2d 14 (Del.