Design and manage transition service agreements to achieve a fast and clean separation
Practical advice to consider for using transition service agreements (TSAs) to achieve a fast and clean separation.
A transition service agreement (TSA), when used wisely, offers some important benefits, such as a faster close, a smoother transition, reduced transition costs, better end-state solutions and a clean separation. However, divestitures that get the TSA wrong may drag on for much longer than expected.
In our latest point of view, "Fast Break – A way to design and manage TSAs to achieve a fast and clean separation," Indira Gillingham, senior manager and Mike Stimpson, manager, with Deloitte Consulting LLP, provide practical advice for using TSAs to achieve a fast and clean separation. A TSA can accelerate the negotiation process and financial close by allowing the deal to move forward without waiting for the buyer to assume responsibility for all critical support services.
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