The comments and questions that follow make it better to “do things you need to do yourself,” not “that`s what they need to do to have a successful ASD” – in addition to the fact that all participants should be communicated to each other and that the agreement should be very detailed. This dilemma is often resolved by providing intra-group services selected by the seller (or its relevant subsidiary) during a transitional period to enable the buyer and target company to find a replacement and ensure a smooth transition to the new service provider. Services provided during this transitional period are commonly referred to as “transition services” and are regularly governed by “transition services agreements” (“ASD”). An ASD should also be based on the quality and performance indicators applicable for each transitional service; “KPI”). In addition, there are often no comparisons of the past, which often need to develop quality levels and KPIs. Quality levels and KPIs should become as detailed as possible; General phrases (for example, “quality levels applicable to date”) should be applied. Examples illustrating quality levels are: (i) delivery within a specified time frame, (ii) IT response time (for example, in [x] hours for n reviews and otherwise in [y] hours) and (iii) interrupting none of the features. Regulatory requirements/restrictions: Transition services may be subject to applicable regulatory requirements if the target transaction is itself regulated (e.g. B, banking or insurance companies). The outsourcing of certain essential functions to unrelated persons may therefore require authorisations from the relevant regulatory authority. Transition service agreements can be extremely difficult to manage if they are not properly defined.
As a general rule, poorly developed ASDs give rise to disputes between the buyer and the seller over the extent of the services to be provided. Transition services are often provided between multiple parties on each side (for example. B by HR units of a group with several targeted companies that are operated). In such cases, framework TSAs are entered into between the seller and the buyer as the sponsor of the AM transactions. On the basis of these framework agreements, service providers and recipients enter into Service Level Agreements (SLAs) that specify services and other relevant details.