Before the letter of intent: the planning window owners tend to miss.

Most owners call an advisor after the deal is done and the proceeds have landed. That is a useful moment, and our note on investing business sale proceeds covers it. But several decisions are easier, or only possible, earlier: in the months before a buyer and seller sign a letter of intent.

This page is educational. It describes a planning sequence, not a recommendation, and it does not estimate tax savings.

Why the timing matters

Once a sale is substantially agreed, some planning options narrow. Transfers of company interests to a trust or charity, for example, can be treated differently depending on how far negotiations have progressed. Your CPA and attorney decide what is still available. The practical point for an owner is simple: talk to them before the LOI, not after.

A sequence that keeps professionals in their lanes

1. Personal plan first. What does the household need from the sale to fund the next stage of life? That number shapes how much can go to family or charity.
2. CPA modeling. Your CPA estimates the tax picture under different structures, such as an asset sale versus a stock sale, and reviews whether any federal provisions for qualified small business stock may apply.
3. Attorney drafting. If a trust or entity change makes sense, the attorney drafts it and checks the timing against the deal.
4. Advisor coordination. Vital helps connect the plan to the investment side: what gets held, what gets diversified, and how proceeds will be invested once they arrive.

Charitable tools owners ask about

Donor-advised funds. A contribution goes to a sponsoring charity, and the donor recommends grants over time. Some owners contribute appreciated assets or a portion of their interest before a sale. Rules on what a sponsor will accept vary.

Charitable remainder trusts. An irrevocable trust that can pay income to the owner for a period, with the remainder going to charity. These are complex, permanent, and need an attorney and CPA from the start.

Outright gifts. Simpler, but still subject to timing and valuation rules if company interests are involved.

None of these fits everyone. Each involves giving something up permanently. We will not suggest one unless it serves goals you already have.

Concentration before the check clears

Between signing and closing, most of your net worth may still sit in one company. Deals can be repriced or fall apart. Building wealth outside the company and a cash reserve held through treasury management reduce the pressure to accept terms you would otherwise question.

Related reading

For the longer runway, read exit as a multi-year project. If the buyer may be a co-owner, see buying out a business partner. The business transition page describes how Vital coordinates the work.

Advisory fees are described in Form ADV. If a sale is on your horizon, a discovery call is a low-pressure place to map who should be involved and when. Meet Dillon or use contact.

Common questions

When should pre-sale planning start?

Ideally well before a letter of intent is signed. Several strategies, including many charitable transfers, generally need to be in place before a sale is substantially agreed. Your CPA and attorney can tell you what timing applies to your facts.

Does Vital give tax or legal advice?

No. We coordinate with your CPA and attorney, who advise on tax and legal matters. Our role is the investment and household planning around the sale.

Will charitable planning reduce my taxes?

It may, depending on your situation, but we do not quote savings. The amount depends on the asset, timing, structure, and current law, and your CPA should model it.

Educational content only, not personalized tax, legal, or investment advice. Consult your own CPA and attorney before acting.