By Tricia Boutros and Star Zhang

For more than a decade, China has been a popular destination of foreign mergers and acquisitions (M&A). While Chinese sellers are excited for the opportunities to capitalize on their business or to partner with foreign companies, it is not uncommon that such sellers dread the thick and detailed transaction documents that contain substantially foreign concepts. This article is intended to help explain one such typical concept in M&A deals pertaining material adverse change (MAC) or material adverse effect (MAE) provisions, helping to identify advantages and disadvantages provided to transacting parties, as well as comment on the climate for negotiations with respect to MAC or MAE. Read the entire article here.