Speed is important - ASDs are an important part of the deal documents and initial operations of the acquired company. No functional manager, buyer or seller, wants to be the obstacle to signing a deal, because the TSAs are not complete. As soon as possible after the requirements have been registered, the design of transition service agreements is designed and the process of clarifying the scope, costs and duration of the requirements. If you. B have organized a joint requirement workshop on a Wednesday/Thursday, your team goal should be to design ASDs and check them the following Monday. It always takes longer than expected, and time should not be wasted. Unasytified waters. In general, when a buyer and seller have signed a non-binding Memorandum of Understanding (LOI) to acquire a carve-out unit through an asset purchase agreement (APA); due diligence completed; and then reached a substantial agreement on the main terms of an agreement; One of the most important final documents to develop is an agreement on transition services. If a vendor wants to remove a non-strategic business unit, industry, installation, product line, etc., the buyer must literally "distribute" the assets to be divested from the remaining organization, systems, processes, applications and often a very complex and interconnected shared service environment.
After the conclusion, regardless of the systems, applications, services or processes that the buyer cannot maintain and operate smoothly immediately after the transfer of ownership, the buyer usually acquires these services from the Seller for a specified period of time. Unfortunately, the devil is still in detail and TSAs usually bedevil both buyers and sellers. While buyers generally want to provide very detailed and specific ASDs based on function, sub-function, system, process and service, all of which are tailored to certain position costs and defined periods, sellers often want the opposite. Difficult dynamics and conflicts often occur, as the gap between what the buyer thought and what the seller will offer will be as pronounced as the Grand Canyon. One customer, a highly developed global acquirer, recently commented: "We launched our TSA as best friends and business partners, but we quickly found ourselves in a vast trench warfare." - Keep a customer perspective - During the transition service contract, there will be many situations where buyers and sellers may not agree on approach, cost or duration. When the situation arises, it is usually best to think about what is best from the client`s point of view. Both buyer and seller have an interest in ensuring that the products and services provided from the divested division remain at the highest level throughout the deal process.