I have agreed to a twelve-month Transition Services Agreement as part of the sale. How do I set clear boundaries with the buyer during this TSA period so I do not end up working eighty hours a week running their new division?

Question

Tyler Smith · Accepted Answer

A Transition Services Agreement is designed to ensure operational stability after a sale, but without clear boundaries, it can quickly turn into a grueling full-time job. To protect your time and peace of mind, you must negotiate the specific terms of the agreement before signing the purchase contract.

Define your scope of work with extreme precision. Your role should be limited to advisory services, knowledge transfer, and strategic guidance, not daily operational execution. Specify the maximum number of hours you will work each week or month, and include a clear mechanism for overage fees. If the buyer requires you to work more than the agreed-upon hours, they should pay a high premium.

Establish that your primary point of contact is the new CEO or Integrator, and that you will not be taking direct requests from line-level staff. Utilize your existing leadership team to handle the actual hands-on integration tasks, allowing you to act solely as an advisor.

By treating the TSA as a formal, professional contract with strict boundaries rather than an informal favor, you can ensure a successful handover while maintaining control over your schedule and preparing for your post-exit life.