Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Change of Control Provision

Definition

A provision in an agreement that prevents the agreement from being transferred if there is a change of control.

See Also

Assignment, stock sale.

Tips

This is a critical component of acquisitions, as many contracts must be transferred for an acquisition to be successful. However, many contracts require consent if there is a change of control, as defined in the agreement. The definition of a change of control varies from agreement to agreement. Many parties attempt to bypass this provision by structuring the sale as a stock sale, though some agreements contain language that constitutes a stock sale as a change of control.