For many companies, the closing of the acquisition of a business unitmarks the beginning of perhaps the most difficult phase of the transaction — the separation of the divested business from the seller and its integration into the buyer. In most cases, the technology, processes and back-office operations of the divested business are so intertwined with theseller’s operations that merely breaking off the divested business the day afterclosing is not realistic. Rather, the divested business will likely need torely on a set of transition services from the seller until the buyer can migratethe divested entity onto its own platform and processes. Such services canrange from providing office space or payroll services for the employees ofthe divested business to performing complex data processing tasks for thedivested business.
In some cases, the seller willrequire temporary services backfrom the divested business untilit can procure those services elsewhereor provide them for itself. Such services are commonlyreferred to as “reverse transitionservices.”
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