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Transitional Service Agreement (Tsa)

Practical advice on using Transition Service Agreements (SAAs) to achieve a quick and clean separation. A transition service agreement (TSA) is an agreement between a buyer and a seller in which the seller enters into its services and know-how with the buyer for a certain period of time in order to support the buyer and get used to its newly acquired assets, infrastructure, systems, etc. Carveouts are among the most complex transactions. This is especially true when the carveout involves the sale of an operationally integrated business into the rest of the parent company`s business. In the case of such transactions, the seller may be required to continue to provide the buyer with assistance for critical services after conclusion. The pricing structure of TSA services must be clearly defined and structured based on well-measurable metrics – for example. B$ per hour for support staff, MIPS for computing power, $/GB for memory, etc. Each TSA service should be evaluated independently of each other, where possible. . . .