IT Services & MSPs Transition Services Agreements (TSA): An Independent Sponsor's Counsel
When the deal is IT services and MSPs and the question is Transition Services Agreements (TSA), the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.
The economics on a IT services and MSPs platform deal usually hinge on a handful of structural decisions. Transition Services Agreements (TSA) is one of them.
The typical IT services and MSPs platform sits at $8M to $100M EV with EBITDA in the $2M to $18M range. The thesis runs on MSP platform with regional or vertical-specific bolt-ons. An MSP at 70% recurring revenue trades at one multiple, at 90% trades at a different one. The mix is the deal.
How Transition Services Agreements (TSA) actually gets structured.
Define every service with measurable inputs, outputs, and durations.
Price each service at actual cost plus a defined margin.
Set termination rights for both sides, with notice periods.
Address data privacy and security obligations across the transition.
In IT services and MSPs, layer in MSA assignment review with carve-outs noted as part of the Transition Services Agreements (TSA) workstream.
Writing a generic TSA. Every line in a TSA is a future dispute waiting for definition.
"A good TSA reads like a SLA. A bad TSA reads like a memo."Jason Powell · Transition Services Agreements (TSA)
The deal is one thing. The capital that opens up after close is another.
Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.
Related deal pages.
Transaction Fee Structuring for IT Services & MSPs
The fee paid at closing to the independent sponsor for sourcing, structuring, and closing the platform deal a…
Working Capital Adjustments for IT Services & MSPs
The closing-date true-up that protects the buyer from receiving a business stripped of normal-course working …
Representation & Warranty Insurance for IT Services & MSPs
A buyer-side insurance product covering breach of seller representations, reducing seller escrow and indemnit…
Indemnification for IT Services & MSPs
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
Transition Services Agreements (TSA) for Healthcare Services
roll-up of physician practices and ancillary service lines
Transition Services Agreements (TSA) for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Bring the IT services and MSPs deal. Get Transition Services Agreements (TSA) done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.