Document background
The Transition Services Agreement (TSA) is essential in corporate separations, mergers, or acquisitions under Belgian law, where one entity needs to provide temporary operational support to another entity during a transition period. This document becomes necessary when the recipient entity cannot immediately operate independently following a transaction and requires continued access to certain services, infrastructure, or resources from the provider entity. The TSA defines critical elements including service scope, performance standards, costs, duration, and compliance requirements with Belgian regulatory framework. It typically follows a main transaction document (such as a Share Purchase Agreement or Asset Purchase Agreement) and provides detailed arrangements for various support functions such as IT, HR, finance, and operations. The agreement ensures business continuity while protecting both parties' interests and maintaining compliance with Belgian legal requirements, including GDPR, employment laws, and commercial regulations.
