Divestiture transactions present inherent risks for both buyers and sellers. One of the challenges during a divestiture is ensuring that critical and essential services such as technology, finance, accounting, payroll, and other infrastructure support continue to be provided after the sale.
TSAs play a critical role in ensuring the seamless continuation of critical business services after a sale. These arrangements are particularly common when the buyer lacks the skills or capacity to absorb the acquisition independently, but the seller can provide the necessary expertise. Such situations often arise when a larger company sells a business unit to a buyer with less infrastructure or insufficient time to build the necessary capabilities.