Transitional Service Agreement Example

If you`re in the business world, you may have heard of a transitional service agreement (TSA). This document is used when two companies are merging and need to transfer services to each other. The TSA outlines the services that will be transferred and the timeline for the transfer. But what does a transitional service agreement example look like?

Here are some key components of a transitional service agreement example:

1. Services: The TSA should clearly outline the services that are being transferred from one company to another. This could include IT services, HR functions, financial reporting, or any other service that needs to be transferred.

2. Timeline: The TSA should specify the timeline for the transfer of services. For example, IT services may need to be transferred within 30 days of the merger, while HR functions may need to be transferred within 60 days.

3. Responsibilities: The TSA should clearly outline the responsibilities of each company during the transition period. This could include who is responsible for maintaining the transferred services, who is responsible for any issues that arise during the transition, and who is responsible for training employees on the new systems.

4. Payment: The TSA should specify how payment will be handled during the transition period. This could include how much one company will pay the other for the transferred services, how often payments will be made, and any penalties for missed payments.

5. Termination: The TSA should specify how the agreement can be terminated. This could include a notice period, penalties for early termination, or any other conditions that need to be met before the agreement can be terminated.

It`s important to note that every transitional service agreement will look different depending on the specific needs of the companies involved. However, all TSAs should include these key components in order to ensure a smooth transition of services during a merger or acquisition.

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