For Value Creation Teams

TSA exposure is a value creation lever.

Value creation teams own the EBITDA story between close and exit. The TSA shows up in three places that story cares about. Cost run rate that sits inside SG&A and crimps margin. Exit milestones that determine the next holder's diligence. Operational risk that depresses the multiple. TSA Advisory takes each of those into a fixed scope engagement that books a measurable result into the value creation plan.

Where TSAs Show Up in the VCP

Five places the TSA touches the value case.

Value creation plans are built around line items. Margin expansion, working capital, commercial growth, operational excellence, exit readiness. TSA exposure shows up across each of these, often without being labeled as TSA exposure. The work below maps the contract to the line item.

Each engagement is fixed scope, fixed fee, and ties back to a number on the value case.

  1. i.

    SG&A margin protection.

    TSA run rate sits inside SG&A. Cost-plus mark-up resets and catalog rationalization pull dollars out of the run rate that drop into EBITDA over the remaining TSA term.

  2. ii.

    Working capital and cash.

    Extension fee minimization, milestone tied invoicing and credit recovery convert outflow timing risk into cash inside the hold period.

  3. iii.

    Operational excellence.

    Day One readiness and SLA enforcement keep service quality stable through the carve-out. Avoid the operational dip that shows up as a multiple discount at exit.

  4. iv.

    Commercial story.

    A standalone operating model, off the seller's infrastructure, free of seller dependencies. The bid book wants this, not a footnote that says the TSA runs another nine months.

  5. v.

    Exit readiness.

    Clean stranded cost analysis, final separation and vendor handoff. The next sponsor's diligence finds no surprises. The carry conversation stays clean.

Documentary view of a value creation team mapping TSA exposure into the EBITDA bridge
What Value Creation Teams Get

Six engagement points. Each maps to a value case line.

The work below is structured to plug into the value creation plan. Every engagement carries a target number, a timeline, and a reporting format that fits into the VCP cadence.

01

TSA cost reduction program

Catalog rationalization, cost-plus mark-up reset, pass-through validation, extension fee minimization. Booked into the EBITDA bridge over the remaining TSA term.

02

Pre-signing leverage memo

Two week diligence stage review during the bid window. Service catalog stress test, pricing benchmarks, exit clause leverage points. Lands as a value creation input before the deal closes.

03

Day One readiness program

90 day operational stand-up. The Day One that holds the operational excellence line in the VCP through the carve-out window.

04

Exit acceleration

When the exit milestone is at risk of slipping into the next hold year. Workstream rebuild and seller cadence reset. Pulls the exit date back into the original IC slide.

05

SLA and dispute remedy

Service level breach claims and credit recovery. Converts dormant remedies into cash inside the hold period.

06

Value creation update memo

Each engagement closes with a one page memo that summarizes the change to the value creation plan. Designed to drop into the next operating committee deck without further translation.

Outcomes

What value creation teams have booked into the plan.

Anonymized results from prior engagements. Full case studies available on request under NDA.

$5.2M
Mid-Market PE · Industrial

EBITDA bridge gain, 12 month savings

$9M annual TSA at cost-plus 30 percent mark-up. Reset to cost-plus 12 percent on a tightened catalog. Savings booked into the value case for the remaining TSA term.

0
Large-Cap PE · Healthcare

Exit defended at the IC date

18 month TSA. Exit milestone was four months behind. Exit acceleration program landed the original IC date. No carry impact, no hold extension.

$6.8M
Mid-Market PE · Software

SLA credits and extension fee avoidance

24 month TSA. Recovered SLA credits and avoided extension fees the original deal model had not provisioned for. Cash gain inside the hold period.

For Value Creation Teams

Book the TSA work into the value case.

Fixed fee proposal in 48 hours. Outcomes that drop into the VCP without translation. The first conversation is always free.