A private equity buyer is acquiring a division being carved out from a larger company. The target’s IT, HR, and finance functions are currently provided by the parent. What is the MOST SIGNIFICANT risk if transitional service agreements (TSAs) are not put in place?

1. AIncreased marketing costs
2. BImmediate violation of HSR rules
3. CAutomatic forfeiture of tax attributes
4. DBusiness disruption due to lack of critical support services✓ Correct answer

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