Transition Services Agreements
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Our company recently divested a number of assets and the buyers required us to stand up certain functions for them, which we documented in TSAs by functional area. It has been a grueling process. What are some of your company’s best practices when creating, negotiating and implementing TSAs and what are some of the pitfalls to look out for?
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During the DD phase it is helpful to utilize some of the information captured for building out the TSA later.
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I believe scope, timing, and cost per each function in the TSA are the key pillars to consider. All should be carefully analyzed to determine very precisely / due diligence provide the key input. Take into consideration the handover effort.
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