Transaction Advisory Agreement

A transaction advisory agreement, also known as a TAA, is a legal document that outlines the terms and conditions for a transaction between two parties. This agreement is typically used in mergers and acquisitions (M&A) to ensure that both parties understand their obligations and responsibilities throughout the process.

The transaction advisory agreement covers a range of important topics, including the purchase price, closing conditions, representations and warranties, indemnification, and post-closing obligations. Let’s take a closer look at each of these areas.

Purchase Price

The purchase price is one of the most important elements of any transaction, and the TAA outlines the terms of this price. This includes any adjustments that may be required based on changes in the company’s financials or other factors that may impact the value of the company.

Closing Conditions

The TAA also outlines the conditions that must be met before the transaction can be completed. This may include regulatory approvals, financing commitments, and other conditions that may be required to ensure a smooth and successful transaction.

Representations and Warranties

The representations and warranties section of the TAA outlines the promises that both parties make to each other. For example, the seller may agree that they have a clear title to the assets being sold, while the buyer may warrant that they have the funds necessary to complete the transaction.


The indemnification section of the TAA outlines the responsibilities of each party in the event that something goes wrong during the transaction. This may include financial compensation, mediation, or other forms of dispute resolution.

Post-Closing Obligations

Finally, the TAA may also include provisions for post-closing obligations, such as transition services or ongoing support for the buyer. This ensures that both parties are on the same page regarding the ongoing responsibilities and expectations post-transaction.

In conclusion, a transaction advisory agreement is a critical document in any merger or acquisition. It ensures that both parties are aware of their obligations and responsibilities throughout the process, and helps to minimize the risk of any disputes or misunderstandings. If you’re considering an M&A transaction, it’s important to work with an experienced legal team to draft a comprehensive TAA.