Sticking the landing is not just vital for gymnastics routines, it’s paramount for liquidity events too.
And that’s why advisors say the years leading up to the sale or succession of a business require huge preparation, especially when it comes to tax planning, to reduce the possibility of stumbling when it comes time to dismount.
Jeff Getty, chief tax strategist at Callan Family Office, for one, says the biggest mistake is treating transaction tax planning like annual tax planning. He describes annual tax planning as being episodic and transaction planning as architectural. And in his view, the tax result is not created at closing, it is shaped over time through decisions about ownership, entity structure, trust design, charitable intent, state residency, asset protection, and post-sale capital deployment.
“Waiting too long turns planning from a design process into a salvage exercise. It happens because founders are focused on building the business, and a future exit feels uncertain until it suddenly becomes real. That uncertainty creates the false sense that planning can wait. But transaction tax planning is not static. It should be evaluated, reviewed, and refined as the business grows, the owner’s goals evolve, and the likely transaction path becomes clearer,” Getty said.