This is a summary of the Hotshot course “Materiality Scrapes: Market Trends,” in which ABA Business Law Section M&A Committee members discuss market trends for materiality scrapes, drawing on data from the ABA M&A Committee’s 2020–21 Private Target M&A Deal Points Study. View the course here.
- The use of materiality scrapes has increased significantly over the last several years.
- According to the ABA M&A Committee’s Private Target Deal Points Study:
- Only 14% of deals in 2004 included materiality scrape language.
- In contrast, 92% of deals in 2020 and the first quarter of 2021 included materiality scrape provisions.
- 88% of those deals included breach scrape language (either alone or together with damages scrape language).
The rest of the video includes interviews with ABA M&A Committee members Rita-Anne O’Neill from Sullivan & Cromwell LLP and Craig Menden from Willkie Farr & Gallagher LLP.