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Systems and records

Transition services agreements: keeping system access after a carve-out

By SourceX Editorial · Reviewed by Noah Loul ·

Short answer

TSA data access in a carve-out lets the divested business use the seller's systems for a set period, and that access ends at TSA exit. To keep the history, write each system, the years and record types in scope, the export format, the validation test and the exit date into the TSA. Otherwise cutover moves open records only.

Key takeaways

  • A TSA usually funds operating access to shared systems, not extraction of the divested business's closed history.
  • Name every system and the years of records in scope, or the handover will default to open records only.
  • Fix the export format and require original IDs, timestamps, attachments and audit trails where systems hold them.
  • Tie TSA exit to a validated historical extract, not only to a calendar date.
  • Agree in writing what the seller keeps, for how long, and under what confidentiality terms.

What does a TSA cover for systems and data?#

A transition services agreement covers the services a seller keeps providing to a carved-out business after closing, usually IT, finance, HR and access to shared systems, for a fixed term with negotiated extensions. Each service sits on a schedule with a description, a fee, a duration and an exit plan.

For systems, the schedule typically lists the ERP, CRM, helpdesk, email tenant, file shares and engineering tools the business runs on. The usual gap is scope. The schedule promises that the business can keep taking orders and answering customers; it rarely says which years of closed orders, cases, quotes and project records will be handed over, in what format, or by when.

TSA terms are negotiated deal by deal and interact with the purchase agreement, so treat this as general information, not legal advice, and work through the specifics with deal counsel.

Why system history gets lost at TSA exit#

System history gets lost at TSA exit because cutover plans are built around open work. The integration team moves active customers, open orders, open tickets and current price lists into new systems, and everything closed stays behind in the seller's shared instance.

Shared instances make the problem harder. The divested business may sit in one ERP company code among many, one region of a CRM org or one set of queues in a helpdesk, with its records interleaved with the seller's other businesses. The seller has good reasons to protect that other data, so without an agreed separation rule nobody extracts the history at all.

Once access ends, the history follows the seller's retention schedule, not yours. The questions that need it arrive later: warranty claims, customer pricing audits, tax inquiries, disputes and diligence on the next sale.

  1. 01Your work records
  2. 02Personal details removed
  3. 03You approve the release
  4. 04Licensed to AI developers
How it works with SourceX: Your work records → Personal details removed → You approve the release → Licensed to AI developers.Illustrative

The TSA systems checklist#

The TSA systems checklist turns history into named deliverables with owners and acceptance tests. Attach it to each systems service and fill it in during negotiation, while both sides still have leverage and the seller's IT team is engaged.

The TSA systems checklist
ItemWhat to write downWhy it matters
SystemsEach named system and instance: ERP, CRM, helpdesk, email, file shares, code repositories and retired archivesUnnamed systems fall out of scope
History scopeRecord types and date ranges, open and closedCutover defaults to open records
OwnershipWhich records belong to the business under the purchase agreementDecides what the seller must hand over and may keep
Separation ruleHow the business's records are identified in shared instancesCommingled data needs a filter both sides accept
Export formatNative backup, database extract, files plus attachments, or API pullFlat reports lose links and audit trails
ValidationRecord counts, sample checks and written acceptanceProves completeness while access remains
Exit and extensionsService end dates, notice periods and extension termsLate extraction becomes costly or impossible
Post-exit accessRetrieval requests, read-only windows and seller deletion or certificationQuestions arrive after exit

Four ways to separate records from a shared instance#

Separating the business's records from a shared instance comes down to four approaches, and most carve-outs combine them. The choice depends on how cleanly the business can be identified in the data and how much of the seller's information sits in the same tables.

A common pattern is to migrate open records, archive closed history in a separate extract, and negotiate a short read-only window for anything missed. Whatever the mix, require original identifiers in every output so records from different systems can still be joined later.

Four ways to separate records from a shared instance
ApproachHow it worksKeeps history?Watch for
Clone and purgeCopy the whole instance, then delete the seller's other businessesYes, with original IDs and audit trailsSeller confidentiality during the purge; software license terms for the copy
Filtered extract and loadExtract by company code, business unit or brand and load into new systemsPartly; often open or recent records onlyLost links, missing attachments and gaps in the filter rule
Historical archive extractExtract closed history into a readable archive, separate from the migrationYes, as files the business controlsNeeds a viewer and count checks
Read-only access after exitSeller keeps the business's records available for lookupsYes, while access lastsDepends on the seller's goodwill and retention schedule

What happens to history after the TSA ends#

History left in third-party systems after the TSA ends is governed by vendor terms, and those windows are short. The Salesforce Main Services Agreement provides that customer data is made available for export if the customer asks within 30 days after termination, after which Salesforce has no obligation to keep it. Microsoft says it keeps customer data from an ended cloud subscription in a limited-function account for 90 days so it can be exported.

Those windows matter when subscriptions transfer to the carved-out business and are cancelled after migration, or when the seller retires its own instance. Put export deadlines on the integration plan for every subscription that will close, and check the actual order forms, which may differ from standard terms. Before signing off on exit, work through this list.

  • Confirm the historical extract passed validation and that acceptance is signed.
  • Store the archive in company-controlled, encrypted storage with an index of systems, record types and date ranges.
  • Record what the seller retains, for how long, and under what confidentiality and use limits.
  • Close or transfer subscriptions only after their exports are verified.
  • Add the archive to the company's retention schedule and name an owner for it.

Illustrative: a distribution division leaves its parent's systems#

Illustrative: a fictional industrial parts distribution division is carved out of a diversified manufacturer by a private equity buyer. The division runs on the parent's ERP as its own company code, shares a CRM org with two sister businesses, and handles customer cases in a shared helpdesk with its own queues.

The draft TSA covered order processing and invoicing for a fixed term and the migration of open orders and active customers. The operating partner adds a historical extract service: closed orders, returns and credit memos for every year the ERP holds, CRM activity history for the division's accounts, and helpdesk cases from its queues, all with original IDs and attachments, accepted against record counts.

The new ERP starts with open records, and the history sits in a readable archive the company controls. When a large customer audits its pricing history, the team answers from the archive. The board later asks whether the returns and exception records could be licensed, which depends on how the purchase agreement allocates data and on the customer contracts.

How SourceX approaches carve-out records#

SourceX approaches carve-out records through the Rights step of the SourceX five-step transaction as much as the Supply step. Records still commingled with the seller's data, or records the purchase agreement leaves with the seller, are out of scope until separation and ownership are settled.

Once the carved-out company controls its history, the fit check needs only metadata: systems, years, record families and known restrictions. If a package proceeds, the SourceX Evidence Packet records provenance, including the chain from seller to carved-out company, along with licensing rights, permitted use, the privacy record and release authorization.

Frequently asked questions

Is the seller obliged to hand over historical records?

That depends on the purchase agreement and the TSA. Many agreements allocate business records to the buyer while letting the seller keep copies for legal, tax and audit purposes, but the wording varies widely. Have deal counsel confirm what is allocated and whether the TSA obliges the seller to extract it in a usable form.

Should the historical extract be a separate TSA service?

Often it is clearer that way. A separate service gets its own scope, format, acceptance test and fee, instead of competing with operating support for the seller's IT time. It also gives both sides a defined finish line that can be tied to TSA exit.

What if the seller insists on keeping a copy?

Sellers commonly keep copies for tax, legal and audit reasons. Agree on confidentiality, permitted use and how long the copy is kept, and ask for deletion or a certificate when that period ends, so the business's records do not sit indefinitely in a former parent's systems.

Can the carved-out company license its historical records later?

Possibly, if the records belong to it under the purchase agreement and no customer contract, vendor term or confidentiality duty to the seller restricts the use. Those questions are assessed deal by deal with counsel, so record the chain of ownership while the carve-out details are fresh.

Who should own data separation on the buyer side?

Name one integration lead, often the incoming CIO or an interim IT director, with the operating partner as sponsor. The seller should name its own counterpart. Put both names in the TSA governance schedule so open questions about scope and acceptance have a clear path to resolution.

Sources

  • Under the Salesforce Main Services Agreement, if the customer asks within 30 days after termination or expiration, SFDC makes Customer Data available for export or download; after that period SFDC has no obligation to maintain or provide Customer Data. Source
  • Microsoft's Trust Center says that when a cloud subscription ends or expires, Microsoft keeps customer data in a limited-function account for 90 days so the customer can export it or renew. Source

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