Close · Insurance Brokerage

Transition Services Agreements (TSA) Counsel for Insurance Brokerage Acquisitions

Drafting Transition Services Agreements (TSA) on insurance brokerage deals, with the structure protection and capital connectivity an independent sponsor actually needs.

EV range $10M to $150M EV EBITDA $3M to $25M Audience Buy-side / Sponsor
The deal context

The economics on a insurance brokerage platform deal usually hinge on a handful of structural decisions. Transition Services Agreements (TSA) is one of them.

The typical insurance brokerage platform sits at $10M to $150M EV with EBITDA in the $3M to $25M range. The thesis runs on regional retail agency roll-ups. Producer non-competes are unenforceable in too many states to ignore. Plan retention, not litigation.

The moves

How Transition Services Agreements (TSA) actually gets structured.

  1. Define every service with measurable inputs, outputs, and durations.

  2. Price each service at actual cost plus a defined margin.

  3. Set termination rights for both sides, with notice periods.

  4. Address data privacy and security obligations across the transition.

  5. In insurance brokerage, layer in E&O tail insurance priced and bound as part of the Transition Services Agreements (TSA) workstream.

The common mistake

Writing a generic TSA. Every line in a TSA is a future dispute waiting for definition.

Jason's take
"A good TSA reads like a SLA. A bad TSA reads like a memo."
Jason Powell · Transition Services Agreements (TSA)
Capital after close

The deal is one thing. The capital that opens up after close is another.

Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a insurance brokerage target, and a Transition Services Agreements (TSA) question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.