Survey of Big Deals Shows Balance of Power Shifting

Nixon Peabody’s Sixth Annual MAC Survey showed that sellers were increasingly getting the upper hand, according to this report on the Legal Pad blog. “MAC” stands for “material adverse change” clauses, which are considered a bellwether of the power balance between buyers and sellers, according to the report. MAC clauses give the buyer an “out,” defining conditions under which they can walk away from a deal before it closes. The firm studied public deals in all industries that were valued at more than $100 million (with the high end at $32.9 billion); more than 400 big deals were included in the research.

Add this study to the growing trend in original industry research conducted by law firms. We reported earlier on this blog about Fulbright & Jaworski’s annual Litigation Trends Report and Herbert Smith’s recent survey of ADR policies at leading U.K. companies. If your firm has conducted industry research, let us know by emailing [email protected] so that we can share with readers.