Transitional service agreement (TSA) Legal
Definition
Post-closing agreement between a buyer and seller of a business where seller commits for a period of time (and for a fee) to provide certain services to the new buyer.
Comments
TSAs usually occur in divestiture situations where it can take a period of time to replace corporate functions (IT, legal, accounting) that had previously been provided by the parent company but did not come with the sale of the business.
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