The #1 Mistake Employees Make During a Company Acquisition
Big company news. Excitement in the air. Years of hard work are finally paying off.
If your company is being acquired, you’re probably focused on what it means for your role, your team, and your next chapter.
But here’s the mistake most people make during this kind of transition:
They put off tax and investment planning until after the deal closes, missing the window where real planning power exists.
The Biggest Mistake People Make During An Acquisition
When you wait too long to plan, many key opportunities to plan around taxes, compensation, and equity have already passed:
How your equity will convert or be paid out (and should you sell or hold)?
Will tax elections like 83(b) or AMT considerations come into play?
How to prepare for a sudden influx of cash without losing half to taxes
How your new comp structure affects your overall financial plan
Whether you should diversify concentrated stock positions or defer sales
These decisions are most effective when prepared before the acquisition closes.
Why Timing Matters
During an acquisition, several financial factors move quickly and often behind the scenes.
By the time you see your updated equity statement or first post-deal paycheck, the window to plan may have closed.
Engaging with a financial advisor early gives you a clearer picture of:
When and how your shares will vest or be converted
Potential tax triggers (like double-trigger RSUs or capital gains events)
Opportunities for strategic giving or retirement contributions before the year-end closes
Even a short conversation ahead of time can save you from a costly surprise come tax season.
Not All Advisors Are the Same
Here’s the catch: every financial advisor is different.
If you speak with ten advisors, you’ll likely walk away with ten very different plans for your money.
Referrals from friends or coworkers aren’t always the right fit. Your financial life, compensation, and goals are unique and the advisor who’s great for your colleague is not necessarily right for you.
The key is finding an advisor who understands the nuances of acquisitions and equity compensation, and whose business is structured so that you fit comfortably within their client base.
Maybe you feel like you don’t have enough to talk to one yet or you’re unsure how the deal will unfold. That’s okay.
Financial Fit can help you assess your current situation and determine whether now’s the right time to speak with someone.
Financial Fit will help you find an advisor who:
• Has direct experience with your situation like M&A events and equity compensation
• Understands your tax planning needs, not just investments
• Works with clients at a similar stage of wealth and career
• Operates a business model aligned with your goals and needs
The Bottom Line
An acquisition isn’t just a career transition, it’s also a personal financial one.
Don’t wait for the dust to settle before getting advice. The earlier you bring a financial advisor into the conversation, the more control you’ll have over how the deal impacts your wealth, taxes, and long-term goals.
Financial Fit connects individuals with financial advisors who specialize in transitions like acquisitions, IPOs, and liquidity events.
If your company is going through a deal, we can help you find the right advisor before it’s too late to plan.