Transition Service Red Flag

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  • #73262
    S Sarala Maharaj
    Participant

    What requests/ timelines for support would you consider red flags from a potential purchaser?

    #73932
    Edel Tungehaug
    Participant

    Hi Sarala! This is an interesting question. It would depend very much on which kind of area the TSA requested is within. TSAs in the IT and systems area will of course be for much longer than those that cover training or service by employees. However, I think that as the Seller one should be prepared in terms of which TSAs one is offering, for how long and at what price. This will require thorough analysis before going out to Buyers with the Target, but will be worth the time and effort invested. If the purchaser is requesting TSA for longer or within other areas, I would demand a good explanation as to why, and in some cases these might be valid. For example, they are currently setting up a payroll service function and moving all activities from 20 countries into it, but we would like to complete the current transition, before taking on new companies. No real black and white answer to this one..

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