Transitional service agreement: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
(Create page - sources - divestopedia - https://www.divestopedia.com/definition/888/transitional-service-agreement-tsa, Thomson Reuters - https://uk.practicallaw.thomsonreuters.com/0-619-2427?transitionType=Default&contextData=(sc.Default)&firstPage=true) |
(Correct typo 'transitional'.) |
||
| Line 10: | Line 10: | ||
Transitional service agreements are sometimes known as ''transition'' service agreements. | |||
Latest revision as of 04:01, 2 February 2024
Business acquisitions.
(TSA).
A transitional service agreement is an agreement between a seller and a buyer of a business.
Under the transitional service agreement the seller continues to provide specified administrative services to the business after its sale, for a an pre-agreed period at a predetermined price.
Transitional service agreements are useful when the buyer - for example a newer or smaller entity - needs additional time to establish the necessary administrative and back office functions for the acquired business.
Transitional service agreements are sometimes known as transition service agreements.
