Okay, it`s simple, isn`t it? But as with any legal agreement, its quality depends on the effort you put into it. And since the TSA becomes an important transition project document, it pays to spend enough time on TSA planning, taking into account the following: Transitional service agreements are common when a large company sells one of its departments or certain non-essential assets to a less demanding buyer or a newly created company, in which the management carries out its activities. the back-office infrastructure has not yet been built. They can also be used in carve-outs, in which a large company is part of a division in a separate public limited company and then offers the infrastructure services for a defined period of time. The following comments and questions better represent “things to ask yourself”, not “this is what you need to do to have successful ASD” – apart from the fact that all participants should be communicated and that the agreement should of course be very well detailed. Transient service agreements can be extremely difficult to manage if they are not properly defined. As a rule, poorly formulated SADs give rise to disputes between buyer and seller, focusing on the extent of the services to be provided. A Transitional Service Agreement (TSA) is between a buyer and seller and provides that once the transaction is complete, the seller will provide infrastructure support, such as accounting, IT and HR. TSA is common in situations where the buyer does not have the management or systems to absorb the acquisition, and the seller can offer it for a fee. An ASD is a fairly accurate business example of real events: mom and dad help spend their son for the first few months he works, but soon enough he will be able to take care of everything himself. It`s not as if, at first glance, ASD is complex; But it`s what`s written in the TSA deal that causes a lot of potential headaches and hiccups. A transition service agreement (TSA) is an agreement between a buyer and a seller in which the seller enters into its services and know-how with the buyer for a certain period of time in order to support the buyer and get used to its newly acquired assets, infrastructure, systems, etc. Transitional Service Agreement (TSA): Settle the transition when buying a business In many cases, TSA is not required when buying a business.