That’s exactly it. Perfectly normal.
If your company is looking to buy out a smaller company, then you might be interested in a transitional service agreement. Learn more about what it is here.
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Transition Service Agreement (TSA) is an agreement between a buyer and seller whereby the seller contracts with the buyer its services and know-how for a specified period of time in order to support and to allow the buyer acclimate to its newly acquired assets, infrastructure, systems, etc.
For example, a large car dealership may choose to sell off a division to a smaller, upcoming auto company, and part of their deal includes the large car dealership supporting the upcoming auto company with its HR, IT and accounting departments for six months or so. In theory, a TSA is pretty straightforward, and you would be correct to assume so.
A TSA is a fairly accurate business example of real life events: Mom and Dad help out with their son’s expenses for the first handful of months he is working, but pretty soon, he is able to take care of everything by himself. It’s not that a TSA is, on its face, complex; but it’s what lies within the TSA agreement that brings about many potential headaches and hiccups.
There’s no change to the Operators Licence, so ‘legals‘ wont change.