Uebersetzung Transitional Service Agreement
. In many cases, an ASD is not required when buying a business. If the corresponding services have been provided so far in-house and the entire operation is purchased, it is generally possible to continue to perform these tasks without any problems. Therefore, most of the time, an ASD is used when a single division or business is for sale within a larger group. In these cases, it is not uncommon for other services or companies that are not part of the sales activity to provide the corresponding services. In this case, the transition is difficult because it requires the implementation of completely new structures. It is therefore a good idea for the former parent company to take on these tasks until the part of the business sold can deal with them independently. ASDs are not only important for buying businesses. They can also be useful when changing a service provider or software product. This will ensure that the current supplier will carry out its duties until the successor can put its own systems into service.
Transitional Service Agreement (TSA): Resolving the transition in the event of a business purchase When entering into a transitional service agreement, it is very important to clearly and unambiguously formulate the content of the contract and to include all necessary content in the agreement. It is not uncommon for a takeover to have resulted in significant controversies over the extent to which the previous owner must pay for the corresponding services. It is very important to define precisely the services that the seller must provide. The costs that the buyer must bear are also an important part of the content of the contract. In addition, it is useful to agree from the outset a fixed fee for services above the agreed level of service. The duration of the contract is also very important in this regard and must be defined precisely. In addition, partners should provide opportunities for extension. Finally, it is important to define the terms of the billing. In the event of differences of opinion between the parties concerned, it is useful to appoint a conciliation body.