Protect Deal Value with Effective Transition Service Agreements

This report by Alvarez & Marsal outlines the key considerations that have to be made when undertaking a transition service agreement.

Key Points Include:

• Over time, a poorly defined transition service agreement can add risk to deal execution 
• It is critical to have an escalation path defined before execution of a contract to ensure issues are resolved quickly
• An issue resolution process should be explicitly defined in the TSA. Issues should be prioritized based upon their effect on the core business
• The key to ensuring smooth pricing discussions is simplicity. Sellers
  should leverage reporting of the actual cost of resources required to deliver
  services.