Our Process
Your Results Are Our Only Important Statistic.
Your exit transition can be tricky. Think of complications like health, death, board dynamics, hostile takeover or other unforeseen events. Therefore, we respectfully advise — leave nothing to chance. Choose experts who will make the most of your business achievements.
You Are Integral to Our 3-Step Process.
Question
1Step One. Question
Before we lock arms, we must know what you think you want. You define the goals. Then we ask the question: Is CTC best positioned to serve you — or not? There’s no charge for this conference or for whatever time we may spend before or after the call. Naturally, at this time you may walk away — or decide to meet face to face. For this second step, we charge a not-to-exceed fee.
During discussion in Step One, we will divulge fee details.
Recommend
2Step Two. Recommend
We consult with you and others to examine options. We test theories, collect individual views, prioritize your requirements and define pertinent issues and obstacles. Finally, we give you our transaction design recommendations. You are under no obligation to continue if you think our design is not appealing. We encourage you to invite board members, financial and legal counsel and key members of your management team to help you. Together, you and they will gain valuable insight whether or not you choose to retain CTC. If we come to a mutual agreement, step 3 is a solid action plan. And as before, you receive a not-to-exceed quote.
In Step 2, for a very modest fee, we provide design recommendations, a valuation of the enterprise, debt capacity study, corporate cash flow analysis (including all tax saving from an ESOP transaction, a repurchase liability study and employee retirement benefit analysis.
Implement
3Step Three. Implement
We embark on a comprehensive feasibility study and implementation.
- Market Analysis (competition, growth projections)
- Fair Market Value offer To Sell (approved by independent fiduciary)
- Verification of ESOP Viability
- ESOP Repurchase Liability Study
- ESOP Operations Analysis
- Individual Stockholder Equity (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 KSOP Design (if applicable)
- Formal Business Plan for Institutional Lenders
- Confidentiality Agreements
- Executive Summary
- Performance Statistics
- Goals, objectives and Competitive Advantages
- Value Proposition (all parties)
- Employee Communication (compliance with IRS)
In Step 3, our feasibility study and implementation plan is less than half the competition. Also, we charge 1.5% of a transaction value, while competition charges 1-1.5% for enterprise value, no matter what size transaction is closed.
We must understand you — your key people, your health, wealth, threats, strengths, weaknesses and goals. We must sift, verify and analyze this intelligence; as it becomes the foundation for our recommendations. Only with your approval of these recommendations will we design your unique exit strategy — be it succession, management buyout or sale/merger.
The CTC Fee Structure and Methods: What You Must Know.
- Standard exit fees and commissions average 8-15% of transaction gross proceeds.
- CTC fees and commissions average less than 4%.
- All fees paid to CTC are tax deductible. None are paid by owners.
- We always encourage examination of all viable exit options, including ESOP and MSOP financing.
- We target ESOP and MSOP solutions because very few professionals know how to execute these powerful financing tools.