CTP Services


Assessment of Owner Objectives and Resources
Step 1 - Define It:
In most cases, your company is your single largest asset. But it’s not like other assets – you have much more than money tied up in your company. The business is a reflection of who you are.  It’s intertwined with a host of personal relationships – with employees and family in particular.  What you want to derive from the business therefore goes far beyond a simple financial calculation. The first step in any value realization process is to define and understand both your financial and personal goals. CTP will work with you to complete a realistic assessment of the current value of your business, how much income you’ll need upon your exit, and the gap between current resources and projected needs. We will also guide you to consider what you want to do with your life after you’ve ceased material participation in the company. 
 

Growth Strategy Planning
Step 2 - Create It:
You see opportunities to create value every day in the form of a new product or service offering, a regional expansion, or a chance to buy another company. Capitalizing on these opportunities is not always easy. You must have time to step away from day-to-day operations long enough to evaluate the opportunity. You must also have a management team in place that is prepared to execute on that opportunity. CTP team members have worked with more than 100 companies helping business owners capitalize on important opportunities and incentivizing management to drive these opportunities forward.
 

Management Succession and Executive Compensation Planning
Step 3 - Sustain It:
The financial value of your business is based on cash flows that can be sustained after you leave – plain and simple. Having a management team in place that can sustain your company’s value once you step away from a leadership position is essential. Key employees must be able to think and act like owners; and they must understand what generates value at both the top and bottom lines. CTP will work with you to design a compensation system that is tied to value drivers which provide the motivation necessary to propel key employees to the next level.  CTP will also work with you to assess whether your existing plan meets your overarching management succession and / or executive compensation objectives.


Contingency Planning
Step 4 - Protect It:
As your business grows and becomes more valuable, your risk profile changes.  There’s just more to lose.  We often think of it in military terms – when you “go on the offensive” and grow the value of your business, you need to “protect your flanks.”  That means you need to manage your broader risk at a business and personal level.  Part of protecting what you’ve built involves developing a properly structured and financed contingency plan. What happens if you’re not there to execute on all of your planning? Another part of protecting what you’ve built involves risk management. You’ll need to monetize some of your business value and diversify it into other assets that aren’t subject to the same risks as your company. CTP will work with you to secure both fronts.
 

Exit / Transition of Ownership
Step 5 - Realize It:
Once value has been created and sustained, you must develop a plan to realize that value; and the plan must be tailored to your unique needs. You derive compensation from multiple sources, including salary, retirement contributions, and dividends or distributions out of net income and proceeds from the sale of the business. You need to consider the tax implications of each of these sources. If realizing value involves sale of the company, you need a plan to maximize business value. Very often key employees will want to own at least a part of the company; and equity ownership can be designed to drive more business value for the owner. You may also have family transition goals. In each of these cases, CTP can help you design, plan for, and integrate your options in order to translate your business assets into wealth.