• Keep a customer perspective – During the transitional service contract process, there will be many situations where buyers and sellers might not agree on approach, costs, or duration. When the situation occurs, it is usually best to think about what is best from the customer`s point of view. Both the buyer and the seller have a legitimate interest in ensuring that the products and services provided from the transferred business unit remain of the highest quality throughout the agreement process. No one wants a customer to have a negative experience because of the transaction. Mark, Senior Partner, at M&A Partners has over 25 years of professional experience in corporate strategy, M&A and customer service at a telecommunications strategy consulting firm. He led due diligence, pre- and post-acquisition integration planning and country integrations for more than 20 transactions with a total value of over $5 billion. Mark`s industry expertise includes: business development, telecommunications, strategy consulting and accounting/auditing services. A Transition Service Agreement (TSA) offers some important benefits, for example. B faster conclusion, smoother transition, lower transition costs, better end-state solutions and clean separation. However, assignments that hurt the TSA can take much longer than expected. Because your company`s deal team members have not prepared a Detailed Transition Agreement (TSA) before negotiations began, they are ill-prepared to negotiate terms that could limit commitments and support risk management. It is now up to you to provide the CIO, a potential competitor, with an ill-defined set of IT services indefinitely. Also, without a formal separation plan, you could be stuck with a large number of lost costs.
Prepare a separation plan. Weirens says EBA should be designed with the end goal: an orderly end to the transition period and exit from the deal. A phased separation plan, which lists the incremental steps, timelines and transitional obligations that each party must meet, can help avoid delays and manage the risks associated with them. “You`d think the buyer should be responsible for developing a separation plan,” Weirens says. “Finally, it is in the buyer`s interest to maintain continuity of service after the conclusion of a transaction. But as cio of the divestment company, you`d rather play offensive than defense. The buyer doesn`t know the systems, processes, and people as well as you do and could develop a lot of bad ideas that could ultimately disrupt the progress of the transition. `4.
Limited control of systems and data in the context of a computer EBA and limited flexibility to modify systems during the transitional arrangements. . . .