Legal Due Diligence

MAE

Short for material adverse effect. Why it matters: This abbreviation appears often in deal conversations and documents, so owners should connect it back to Material Adverse Effect before agreeing to anything.

Related terms

Material Adverse Effect

A serious negative change in the business that could affect the deal. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

More from Legal Due Diligence

APA Asset Purchase Agreement Assignment Basket Change of Control Consent Covenant Definitive Agreement Disclosure Schedule Encumbrance Indemnification Indemnity Cap

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