Insight Metals & mining Transactions & carve-outs

Transition agreements end when someone gives them a date

September 19, 2024 · 1 min read · By Arun Malhotra

The median transition service agreement in our carve-out sample ran eight months past its planned exit. Not because separation was hard — because the TSA invoice arrived monthly and nobody owned the end.

Short, priced TSAs with stated exit dates changed the behavior of both sides. Sellers stopped treating services as annuities, and buyers stopped postponing the build decisions that made them independent.

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