TSA Duration by Function
Beat the base timeline on your deal.
We sequence the interdependent cutovers, reset the seller cadence, and pull each function off the TSA ahead of the base duration — which is where the fee savings live.
How long each function realistically stays on the TSA — and how carve-out complexity, cross-border footprint, and distress move the numbers. Base durations below are drawn from published practitioner benchmarks; the buyer-side goal is to beat them.
Bars show a typical base duration in months for a standard carve-out. These are starting points for planning, not commitments — and an accelerated, buyer-led program routinely beats them.
Base durations per Acquisition Stars / practitioner benchmarks (see sources). IT and ERP run longest because most other functions depend on them.
Adjustments| Factor | Effect | Functions hit |
|---|---|---|
| Carve-out complexity | +2 to 4 months | IT, ERP, HR |
| Cross-border footprint | +1 to 3 months | Tax, Treasury (registrations, data residency) |
| Distressed deal | −30 to 50% (compressed) | All functions |
Best practice targets are tighter than the base: many teams aim to exit most finance and HR TSAs within the first 2–4 months and IT within 6–9 months to cut recurring fees fast. The gap between the base duration and the best-practice target is exactly the value an accelerated exit captures.
Base durations and adjustment factors synthesize published practitioner benchmarks with TSA Advisory engagement experience. They are directional planning inputs, not guarantees; your timeline depends on system complexity, data quality, and seller cooperation. We do not publish a proprietary survey; cited ranges reflect commonly observed durations.
Sources: Acquisition Stars, TSAs in Carve-Out Transactions: Scope, Duration, Economics; PwC, Expediting TSA exits; Dealroom, Transition Service Agreement: Template + How it Works.
Most run 3 to 12 months, with 6 to 12 as the sweet spot and 12 to 24 common in complex separations. Best practice caps administrative TSAs at 24 months; accelerated exits can roughly halve the typical timeline.
IT and ERP are usually the longest poles — often 9 to 12 months or more — because most other functions depend on them. Treasury and marketing are typically shortest. Carve-out complexity adds 2 to 4 months to IT, ERP, and HR.
Cross-border typically adds 1 to 3 months to tax and treasury exits (registrations, data residency). Distressed deals compress all durations by roughly 30 to 50 percent.
See also: TSA cost benchmarks → · The TSA exit checklist →
We sequence the interdependent cutovers, reset the seller cadence, and pull each function off the TSA ahead of the base duration — which is where the fee savings live.
One tactic, one benchmark, or one pattern from a recent buyer-side engagement. Short. Signal heavy. Free.
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