Rechercher

Transition Service Agreement En Francais

When a subsidiary or business leaves a group to be acquired, it is essential that the acquirer negotiates a transitional services agreement or a transitional service contract, which is essential for monitoring the development of information systems. The transferring group wishes to ensure that the provision of contractual transition services does not expose it to additional costs and does not increase its risk of liability: the provision of IT services to third parties is not in its normal activity and its civil liability for this IT activity is generally not guaranteed. A transition service agreement (TSA) is concluded between a buyer and a seller whereby the seller contracts with the buyer its services and know-how for a specified period of time in order to support and allow the buyer acclimate to its newly acquired assets, infrastructure, systems, etc. 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. The « transition services agreement » sets the conditions under which it is the transferring company will provide, during the transitional period, the IT services now passes the activity or entity transferred, which will be foreign to the transferring group. So let me add one thought to your initial checklist: Will you be in a better position in the long run to outsource operational services from the outset to a trusted partner? This can be cheaper and less risky, because in addition to providing services, you get local knowledge of the regulations – knowledge that stays with your NewCo and doesn`t disappear at the end of an ASD. An important part of the success of an acquisition is based on anticipating transition issues. In this respect, the ability of the target to independently post-divestiture or to integrate into the organization of the acquiring group is fundamental. . . .