Transitional Services Agreement Vat
Indira Gillingham, senior manager, and Mike Stimpson, Director at Deloitte Consulting LLP, offer practical advice on using ASD to achieve a quick and clear separation. An ASD can expedite the negotiation process and financial conclusion by allowing the agreement to be reached without waiting for the buyer to assume responsibility for all critical support services. Data protection / Banking secrecy: the provision of services may be subject to data protection and bank secrecy restrictions that must be respected when establishing and negotiating the TSA. 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. Many of the companies transferred in connection with R and D (“targeted companies”) depend on intra-group services such as information and communication technologies (ICT) (e.g.B. Regulatory reporting tools, telecommunications, HR services (for example. B wage settlement services), infrastructure services (e.g. B offices, machines) and other services (. B for example: canteen, fleet management of vehicles, distribution support, brand licenses).
Providers of these services (i.e. the seller or other companies in the group) generally use only other companies in the group, but not third parties, particularly the former group companies, which have been emptied as a result of the transaction of M-A. – Third-party rights / Sublease rights: transition services are sometimes in turn purchased by third parties (particularly for the services). The underlying legal rules may prohibit the service provider from serving unrelated parties. The provision of transitional services therefore requires the explicit agreement of the third party.