Transition/Handover: What are you actually seeing in the Purchase Agreement vs. Reality?

March 31, 2026

by a searcher from The University of Chicago - Booth School of Business in United Kingdom

Hi everyone, I’m currently refining my approach to the post-acquisition handover period and would love to get some feedback from those who have crossed the finish line or are currently in documentation. Specifically, I’m trying to balance what we "ask for" in the SPA versus what is actually required to get up to speed. A few questions for the group: - Duration: How long of a handover period are you typically asking for? (e.g., 3 months, 6 months, or longer?) - Structuring the Time: Are you specifying a set number of hours per week/month in the contract, or just defining a general "availability" period? - Compensation: For those not paying a separate consulting fee (where handover is baked into the purchase price), have you found the seller remains motivated? - Expectation vs. Reality: For those who have closed, how much of that time did you actually end up needing from the seller? Would love to hear any "lessons learned" or specific clauses that helped you manage this transition effectively. Thanks in advance!

Reply by a professional
from University of Michigan in Detroit, MI, USA

Hi Anon, we typically see 3 months of transition assistance included in the deal consideration. As for the specifics, it's deal dependant. Some clients spend a lot of time developing a transition plan (which we encourage), while others are content to agree to broad brush strokes (e.g., full time and in-person for the first month, followed by a reduction in hours and the option for the seller to provide remote only assistance). In general, I would err on the side of caution. The transition period is crucial. Negotiate for as much help as possible included in the purchase price, and include an additional period where the seller has to provide additional services as reasonably requested at an agreed hourly rate. If the worst thing that happens is the seller isn't needed as much as initially thought, no harm. I hope that helps. Let me know if you want to discuss in greater depth. Reach out at redacted and we can set up a time to talk.

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