Consensus Marks Every Step.
You will want to know how we work — the process. Certainly, we must understand your goals and objectives. We organize, analyze, verify and refine information that becomes the foundation for our recommendations — that eventually leads to your unique exit strategy, family succession, management buyout or merger/acquisition.
Phone meetings with decision maker(s) define your goals and objectives. This initial stage is gratis.
Face-to-face meetings with owners and other decision makers for a closer look at your options. We test theories, collect individual views, better understand and prioritize your requirements, define pertinent issues and obstacles and ultimately reach a consensus for next steps. For this step, we charge a small fee, a “not-to-exceed” quote. You are under no obligation to have this meeting or to continue with us if you think the transaction designs are not attractive. We encourage you to invite board members, financial advisors, legal counsel and key members of your management team. You and they will gain valuable insight that surely will influence your exit plan (whether or not you choose to go forward with CTC). After the meeting, when we agree on a sound exit strategy and have a mutual agreement to go forward, we move toward a solid action plan. And, as before, we will provide a not-to- exceed quote for that step.
A comprehensive feasibility study lays out a complete transaction proposal:
- Market Analysis: competition, growth projections, etc.
- Fair Market Value offer to sell, approved by an independent fiduciary team.
- Verification of ESOP viability
- ESOP repurchase liability study
- ESOP operations analysis
- Individual stockholder equity and cash flow analysis
- Definition of Tax Savings
- Loan Schedules
- Projected ESOP Distributions
- Summary of ESOP Design and Financing Plan
- Summary of MSOP Design (If applicable)
- Summary of the KSOP Design (If applicable)
- Formal Business Plan for institutional lenders
- Confidentiality agreements
- Executive Summary
- Performance Statistics
- Goals, objectives and competitive advantages
- Value proposition for all parties
- Employee communication in compliance with IRS Regulations