How collaboration in developing and executing transition
services agreements enables successful carveouts
Executing attractive carveouts in the current market environment
is tough. Sellers and buyers are turning over every rock,
negotiating aggressively across all deal elements - value, risk,
timing, financing, contingencies, etc. Both sides, as they should,
want the edge and want to win.
Transition services agreements (TSAs) are core to many
carveouts. These broad (80-150+ services provided from seller to
buyer – and some additional in reverse) and lengthy (12-18
months+ post-close, with a longer tail for IT) agreements are a
critical enabler – without them many carveouts would not be
operationally feasible at deal close.
