ANALYSIS: Emerging M&A ‘COVID-19' Provisions Go Beyond MAEs

“COVID-19” has officially left the confines of the material adverse effect (MAE) provision in mergers and acquisitions transactions. The realities of running deals and doing business during the pandemic, including the associated delays, hurdles, and uncertainties, are settling into a new status quo and are beginning to be more methodically addressed in M&A contract provisions that govern the mechanics of deals. Several new non-MAE provision types that make explicit reference to COVID-19 are popping up in large deals and deals involving top-ranked law firms—and it appears that new drafting trends are already taking shape, especially with regard to provisions governing ...