Divestitures: Mastering Transition to Accelerate Business Growth

In an era where speed is paramount to maintain competitive sustainability, business restructuring through agile divestitures is increasingly a differentiating capability. Transition service agreements (TSAs) are often a 'necessary evil' that both transaction partners must endure to ensure business-as-usual while separating and integrating sold business units or other assets.
Anticipating TSAs early in the pre-deal phase and drafting 'likely TSA plans', even before a buyer is sought or found, can safeguard against unwanted divestment costs and operational distractions to the remaining company. Leveraging a new breed of managed services vendors in the design and execution of TSAs can further reduce these risks as well as create new opportunities for more and better divestments.
This paper details how companies can master TSAs, including avoiding them altogether with a Divestment Factory approach, to achieve successfully the strategic, operational, financial, and cultural goals of business reformation for the digital age.