Maintaining a TSA office on the buyer`s side is an effective way to manage TSA agreements with the seller. The benefits of this agreement include the seller and buyer negotiating in good faith the Transition Services Agreement and the Reverse Transition Services Agreement (whose conditions to avoid doubts are essentially in accordance with the terms of the TSA Terms) and enter into such agreements by the deadline set out in 6.09 b). Well, most companies have learned (some in the hardest way) that it`s not always that simple. What happens, for example (as is often the case) when services are actually provided by a third-party provider (an outsourcing provider) under a contract with the vendor and must now be extended to the newly bound business? Does the third-party agreement authorize the extension of services to an unrelated party? Is consent necessary? Will that affect the price of these services under the agreement? And what about the underlying factors of production, such as . B business licenses, which are necessary to provide services. Does the license authorize this use? You`ll get the picture. When a company decides to follow an acquisition or divestiture, there are many issues to consider. Too often, parties neglect until late in the process whether services should be provided after closure as part of an Interim Services Agreement (ASD). This article explains the general context in which ASDs are needed and provides advice on how to begin recording and analyzing ASD requirements to avoid unnecessary costs, delays and inefficiencies. In executing hundreds of carve-outs and acquisitions on both sides of the negotiating table, FCM executives saw it all. The construction and implementation of effective TSAs has even become one of our specialties – and have had a huge impact on the success of our customers. The stories of these two carve-out examples illustrate what we have mostly learned: that the time and attention of the TSA will be brought to an early stage if it accelerates your transition and puts money back in its pocket.
Indira Gillingham, senior manager, and Mike Stimpson, senior manager at Deloitte Consulting LLP, provide practical advice on using ASD to achieve a quick and clear separation. An ASD can expedite the negotiation process and financial conclusion by allowing the agreement to be reached without waiting for the buyer to assume responsibility for all critical support services. About the author: Mr. Chittur P. Narayan is the principal director of integration ATM management at CBRE, Inc., the world`s largest company. He has more than 25 years of experience in management consulting, pricing, revenue management and integration in the area of AM.