Can a seller run payroll after close with buyer reimbursing? Anyone have a short payroll TSA they've used?
Working on a ~$1M asset purchase with ~50 employees where the acquiring entity won't be able to process payroll until a few weeks after close. Seller is willing to keep running payroll on his existing account and be reimbursed until we cut over.
Has anyone used a Transition Services Agreement to bridge a gap like this? Sell-side lawyer is quoting a 20-page employee lease agreement as the market norm, which feels too complex for a few-week bridge on a deal this size.
Would love to see a template or redacted version if anyone has one they are willing to share. If you've done this, anything to watch out for?
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