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 company turned to Eliassen Group for support with developing TSA communication and approval methodology between the company and the receiver.
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