CFP FAQ

Frequently Asked Questions

What are the key questions I need to ask myself, to assess whether this CFP option is right for me?
1. As I consider the future of my business, am I focused on diversifying my family’s wealth, while rewarding my employees and solidifying my legacy?
2. Do I want to provide my family members working in the business the support, autonomy, and flexibility I wish I had, to continue to build the business for years to come?
3. Am I interested in rewarding those employees who have helped my family build our business and wealth over the years?
4. Have I built a great business with the talent and culture in place to deliver success for years to come, and would I like to see that culture continue?

What are the hallmarks of a company CFP would be interested in?
CFP desires to work exclusively with owners who have built a strong team, embrace similar values as CFP, perform well in a growing industry, and desire to share their success with their employees through an ESOP structure.

We seek another manufacturing-based organization with consistent earnings between $2 and 10 million in non-construction fields like specialty foods, consumer staples, healthcare, energy or utilities…whose business cycles would complement ours, for mutual cash flow diversification.

Owners who are looking to get the highest price without regard to their employees, or owners looking to obtain an ESOP-based offer to increase a dual track through a private equity auction, are NOT targets for our consideration.

What are some of the advantages of an ESOP?
An ESOP is a very efficient vehicle for owners to preserve their legacy:
Your company name stays on the door and your team remains intact
You could remain active with a high degree of autonomy until you are ready to retire
It rewards rank and file employees who have helped owners build the company and their owners’ wealth. As the company grows, employees who retire would sell back their stock for a comfortable nest egg.
It drives a real “ownership mentality” across employees, through shared economic interests
It provides a flexible exit strategy:
- Enabling owners to sell a majority of their ownership, but still participate in the upside as they work until retirement
- It can include a note back to the seller that can have variable rates or detachable warrants to continue to benefit from business growth
- Or a note that allows terms (interest, term, payments) to be aligned to future business success

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ESOP Information & Resources
National Center for Employee Ownership
https://www.nceo.org
Article: How an Employee Stock Ownership Plan (ESOP) Works
https://www.nceo.org/articles/esop-employee-stock-ownership-plan
Article: Start Here: For Business Owners
https://www.nceo.org/article/start-here-business-owners
The ESOP Association
https://esopassociation.org/resources
The Employee Ownership Foundation
https://employeeownershipfoundation.org
Project Equity Interview with CFP
https://project-equity.org/interviews/columbia

Name

Email Address

Company Name

Phone Number

City

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I am a:

As of now, the most appealing benefits to me of a CFP acquisition seem to be:

Primary industries served:

I estimate my company’s average annual net income over the last five years was:

My employee headcount is:

I don't believe we are interested or prepared for such a discussion at this point.

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