Why Advisors Benefit From Early Collaboration
When a client begins planning to sell a business, the structure of the transaction often influences the client’s proceeds as much as the final sale price. Advisors who bring a tax attorney into the process early help clients make informed decisions, avoid unnecessary surprises, and move toward closing with clarity. Early coordination also strengthens client trust and reinforces the advisor’s role as the central leader of the relationship.
The Hidden Tax Issues That Affect a Deal
Clients want predictability. Yet many tax rules can change the economics of a sale in unexpected ways. Ordinary income generated from certain assets, earnouts treated as compensation, timing mismatches, phantom income, and multi-state capital gains exposure are just some of the issues that can shift a client’s results if not addressed in advance. Identifying these considerations early helps prevent last-minute complications and keeps the transaction aligned with the client’s goals.
How Covello Tax Law Supports Advisors
Covello Tax Law partners with financial advisors, attorneys, and CPAs nationwide to design tax strategies that integrate smoothly with the advisory work already underway. Collaboration from the outset allows legal structure, tax efficiency, and transaction timing to support the advisor’s plan so clients understand the path forward and avoid unnecessary friction at closing.
Our role complements the advisor’s work. We assist with entity and equity structuring, evaluate potential tax exposures, and coordinate with the entire advisory team on planning before and after the sale. Our experience with complex transactions allows us to anticipate common deal issues and support a strategy that is clear, practical, and fully aligned with the client’s broader financial plan.
The Value to Advisors
When advisors bring in a tax attorney who adds strategic clarity and improves the client’s outcome, the advisor’s value becomes even more evident. Clients feel supported by a unified team, and advisors strengthen long-term retention by delivering comprehensive, coordinated guidance.
When to Bring a Tax Attorney Into the Process
Whether the client is exploring a potential sale or already in early discussions, engaging a tax attorney before a letter of intent is signed gives the entire team more flexibility. Early collaboration ensures that structure, timing, and planning work together to support both the advisor’s strategy and the client’s success.
