Definition

TSA (Transitional Services Agreement)

Post-close contract under which the seller continues to provide specified services to the carved-out business.

TSAs cover the operational gap during a carve-out: shared IT, finance and accounting, payroll, facilities. Scope is usually a service catalogue with per-service pricing, terms, and termination rights. The buyer wants the broadest possible safety net; the seller wants a clean, time-boxed exit. Good TSAs are explicit about service levels and the data the seller will provide for the buyer to operate.