Document background
The Transition Services Agreement (TSA) is a critical document used in corporate transactions where one party needs to provide temporary support services to another party, typically following a merger, acquisition, or divestiture. This agreement is essential when immediate separation of all business functions is not feasible or practical. The TSA, governed by Austrian law, outlines the scope of services, service levels, costs, duration, and transition mechanisms. It ensures business continuity while the recipient party develops or acquires its own capabilities. The document must comply with Austrian legal requirements, including the Austrian Civil Code (ABGB), data protection laws (DSG and GDPR), employment regulations, and commercial code provisions. It typically includes detailed service schedules, performance metrics, governance structures, and exit planning to facilitate a smooth eventual separation.
