A tail provision may preserve an adviser’s entitlement to a success fee after an engagement ends. It usually refers to defined transactions or buyers, but the actual scope depends on the wording.
Check the length of the period, which buyers or transactions it covers and what connection the adviser must have had with them. Ask whether the relevant parties will be identified in writing when the engagement ends.
Read the provision with the fee trigger and termination terms. It may matter whether an agreement is signed during the tail period, completes during it or otherwise falls within the defined trigger.
Before appointing another adviser, understand any continuing obligations under the earlier engagement so potential overlapping charges can be addressed.