The Challenge:
The company did not have a process for standing up and supporting a Transition Services Agreement (TSA) subsequent to the sale of a business unit. They also had multiple concurrent initiatives, so the existing accounting group did not have the bandwidth to focus on the Transition Services Agreement (TSA).
The Solution:
The company turned to Eliassen Group for support with developing TSA communication and approval methodology between the company and the receiver.
The Result:
Beyond developing the TSA communication, we also accomplished the following:
- Implemented an accounting structure to wall off the divested business segment after sale
- Developed a process to gather, document, and present costs to the receiver for approval prior to invoicing
- Determined allocation methodologies for costs by the company to the receiver according to terms of the TSA
- Created invoices of fees to the receiver, in appropriate currency, and reviewed with the company's tax department for the assignment of tax and VAT rates
