medium · Investment Banking ma-lbo
Which of the following is a 'Material Adverse Effect' (MAE) carve-out typically found in a merger agreement?
- The loss of the company's largest customer, representing 50% of revenue.
- A regulatory ruling that permanently shuts down the company's main factory.
- Changes in general economic conditions or industry-wide downturns.
- The discovery of massive accounting fraud at the target company.
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