Strategic Management Partners, Inc.

Strategic Management Partners [tsigetarts]

What does CTP Mean for You? -- A Professional Designation -- Contact
Process of Becoming -- Required Qualifications -- CTP Body of Knowledge
CTP Information Contact -- Return to Home Page

[Marble]   What does CTP Mean for You?

[JC]
John M. Collard, CTP
About the Principal		 What Does CTP Designation Mean for You?   [CTP]
  1. Confidence in a professional you are about to hire.
  2. Professionalism in the caliber of work that will be completed.
  3. Knowledge of the basic business model, the troubles that plague a struggling company, the law and the bankruptcy process.
  4. Integrity in validating findings, accurate reporting, and ethical behavior during the engagement.
  5. Communications during the process.
  6. Results.

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[Marble]   Establishing a Professional Designation:

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The Corporate Renewal industry has established this designation to single out the crème de la crème of turnaround professionals. This action follows the lead of other professions who have established stringent criteria to create a benchmark of practical experience, knowledge, and ethical integrity. The result is an elite group of professionals that struggling companies can engage with confidence.

This program is implemented by the Association of Certified Turnaround Professionals (ACTP) , an independent certifying body founded by the Turnaround Management Association (TMA) . There is a comprehensive Body of Knowledge that has been compiled by a faculty comprised of academic and professionals in the field, which is administered by Northeastern University (ACTP@NEU) .

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[Marble]   The Process of Becoming a CTP:

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Becoming certified includes a rigorous testing and background reference check. Upon acceptance by the Standards Committee, professionals are admitted to take a three part, all day examination. Upon successfully passing all parts of this exam, potential CTP candidates are listed in The Journal of Corporate Renewal for a period of sixty days while the industry is given opportunity to respond with any reason why this candidate should not be granted certification. After this waiting period, successful candidates are awarded the Certified Turnaround Professional (CTP) designation.

[Marble]   Required Minimum Candidate Qualifications:

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  1. Candidates must submit references who can attest and detail the results of at least 5 client engagements and have these results verified by the Board, an Officer, or Owner of the company.
  2. Provide three (3) recommendations from qualified professional sources.
  3. Possess a minimum of five (5) years senior operating management or consulting experience.
  4. Agree to adhere to TMA's Code of Ethics. See Ethics
  5. Possess a minimum of a bachelor's degree from an accredited college or university or 10 years senior management or consulting experience.
  6. Pass an examination to test comprehension and understanding of the Body of Knowledge:
    1. Management Practices/Cash Flow Enhancement
    2. Uniform Commercial Code/Bankruptcy Law
    3. Accounting/Finance/Tax Treatment


[Marble]   Certified Turnaround Professional's
      Condensed BODY OF KNOWLEDGE

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The Body of Knowledge that a Certified Turnaround Professional must understand and master is comprised of three parts -- 1) Accounting and Tax Practices, 2) Bankruptcy and UCC Law, and 3) Management and Cash Flow Practices. Each CTP must pass a rigorous examination to justify a superior level of understanding of each of these three areas of knowledge.

ACCOUNTING

  1. Understanding Financial Statements
    1. Balance sheet
    2. Statement of operations
    3. Statement of cash flows
    4. GAAP
    5. Limitation on usefulness of information
    6. Financial statement analysis
    7. Business failure
    8. Detection of failure tendencies
    9. Financial statements issued in Chapter 11
    10. Accounting for Out-of-Court Workouts
  2. Financial Markets
    1. Nature
    2. Market economy
    3. Consumption choices
    4. Competitive nature
    5. Money markets
    6. Capital markets
  3. Cost of Capital
    1. Value of bonds
    2. Value of preferred stock
    3. Value of equity
    4. Techniques
    5. Uses
  4. Valuation of Businesses
    1. Liquidation
    2. Going concern (reorganization) values
    3. Single asset values
  5. Capital Structure
    1. Objective: Maximize firm value
    2. Theory
    3. Business risk and financial risk
    4. Operating leverage
    5. Financing leverage
    6. Debt maturity - st vs lt borrowing
    7. Factors considered in practice
    8. Chapter 11 or out of court workout
  6. Sources of Capital
    1. Working capital
    2. Equipment
    3. Real estate
    4. Venture capital, R & D syndications
    5. Public
    6. Financing the turnaround
    7. Use of cash collateral
    8. Debtor-in-possession financing
  7. Shareholder Value
    1. Objective
    2. Importance
    3. Method to determine
    4. Uses
    5. Impact for financially troubled business
  8. Cost Analysis
    1. Cost behavior
    2. Cost/volume/profit analysis
  9. Profit Planning and Budgetary Control
    1. Cost concepts and flows
    2. Types of budgeting
    3. Importance of annual & long-term plans
    4. Budgeting for troubled business
    5. Flexible budgets
    6. Capital budgets
  10. Performance Measurement
    1. Financial control systems
    2. Shareholder value
  11. Tax Awareness
    1. Pre-planning considerations
    2. Treatment of Income During Bankruptcy Period
    3. Corporate Reorganizations
    4. Availability of Net Operating Losses


COMMERCIAL AND BUSINESS LAW
  1. Secured Transactions
    1. Transactions governed by UCC Article 9
    2. Requirements to attach security interests
    3. Requirements to perfect security interests
    4. Multistate transactions
    5. Priority rules, conflicting collateral claims
    6. Rights of the secured creditor
    7. Remedies on default
  2. General Contract Issues
    1. When is a writing required?
    2. When is a binding contract created?
    3. Principles of contract interpretation
    4. Damages for breach of contract
    5. Specific performance of obligations
  3. Judicial Debt Collection
    1. Prejudgment remedies
    2. Obtaining a judgment
    3. Post Judgment collection


BANKRUPTCY LAW
  1. Types of Bankruptcy Relief -- The essential aspects of Chapters 7, 11, 12, and 13 relief
  2. What Types of Enterprises May Be Debtors Under The Bankruptcy Code? -- Under what circumstances may a bankruptcy court dismiss a bankruptcy case?
  3. Bankruptcy Case Commencement
    1. What types of information must be filed?
    2. Under what circumstances may a case be commenced involuntarily against debtor?
  4. Effect of Bankruptcy Filing
    1. Automatic stay
    2. Property of the estate
    3. Constraints on management
  5. Debtor In Possession Financing and Cash Collateral
    1. On what basis may a debtor obtain DIP financing?
    2. What protections can be offered to DIP lenders?
    3. What is "cash collateral?"
    4. When may a debtor use cash collateral?
  6. Use, Sale and Lease of Property of Estate?
    1. How does a debtor continue operations after a bankruptcy filing?
    2. When may a debtor use, sell or lease property without court permission?
    3. When is court permission required?
    4. Effect of sale of major assets
    5. Sales free & clear of liens or other interests
  7. Parties In Chapter 11 Proceedings
    1. What is the function of the U.S. Trustee?
    2. What is the function of Committees?
    3. Under what circumstances may a trustee be appointed?
    4. Under what circumstances may an examiner be appointed?
  8. Trustee's Avoiding Powers
    1. Who may exercise avoiding powers?
    2. Who benefits from avoiding powers?
    3. Trustee's strong arm power
    4. Trustee's power to assert rights of actual unsecured creditors
    5. Trustee's power to avoid statutory liens
    6. Trustee's power to avoid preferences
    7. Trustee's power to avoid fraudulent transfers and obligations
    8. Setoff
    9. Post-petition transfers
    10. Liability of transferees of avoidable transfers
    11. Preservation of liens for benefit of estate
  9. Executory Contracts -- What are they?
    1. Assuming or rejecting executory contracts
    2. Remedies for breach of contracts
    3. Effect of bankruptcy, financial condition, and nonassignment clauses
    4. Rights/obligations under property leases
    5. Bankruptcy of real property lessors/sellers
    6. Collective bargaining agreements
  10. Claims and Interests
    1. Proofs of claim
    2. Allowable claims
    3. Secured and unsecured claims
    4. Estimation of claims
    5. Priorities
    6. Equitable subordination
    7. Environmental claims
  11. Chapter 11 Plan
    1. Exclusive period to propose plan
    2. Treatment of administrative expenses
    3. Treatment of tax claims
    4. Treatment of other priority claims
    5. Treatment of secured claims
    6. Treatment of general unsecured claims
    7. Classifying claims and interests
    8. Substantive and procedural consolidation
    9. Mandatory & permissive provisions of plan
    10. Disclosure statements
    11. Soliciting plan acceptances
    12. Voting requirements
    13. Good faith requirements
    14. Discharge
  12. Bankruptcy Courts and Jurisdiction
    1. Structure of bankruptcy court system
    2. Jurisdiction over cases
    3. Jurisdiction over proceedings
    4. Personal jurisdiction issues
  13. Tax Issues in Reorganization Cases


MANAGEMENT
  1. Cause of Business Failure -- External/Internal
  2. Early Warning Signs of Decline/Failure
    1. Adverse trend signals
    2. Indicators of bad management/structure
    3. Industry and environmental problems
    4. Bankruptcy prediction models
  3. Requirements for Successful Turnaround
    1. One or more viable core businesses
    2. Adequate bridge financing
    3. Adequate organizational resources/skills
  4. Characteristics of Effective T/A Managers
    1. The key roles of turnaround managers
    2. Necessary managerial skills
  5. The Stages of the Turnaround Process
  6. Management Change Stage - Select the T/A manager, replace existing top management
  7. Situation Analysis Stage -- Nature of the situation, Pre/detailed viability analysis
  8. Design/Selection of Turnaround Strategy Elements of effective plans, types of strategies
  9. Emergency Action Stage
    1. Take charge, Get control of cash flow
    2. Financial & Marketing management
    3. Manufacturing/operations management
    4. Managing engineering and R&D
    5. Changing the culture
  10. Business Restructuring Stage
    1. Financial & Marketing management
    2. Manage Mfg., Operations, Eng. and R&D
    3. People and organizational management
  11. Return To Normal Stage
    1. Financial & Marketing Management
    2. Manage Mfg., Operations, Eng. and R&D
    3. People and organizational management


[Marble]   Contact Association of Certified Turnaround Professionals     [CTP]

To become a Certified Turnaround Professional, or obtain more information about this CTP program, please contact:

Certified Turnaround Profesional (www.actp.org).
James K. Seward, Ph.D., Faculty Dean
University of Wisconsin Madison, Graduate School of Business
c/o Association of Certified Turnaround Professionals
150 South Wacker Drive, Suite 900
Chicago, Illinois 60606 USA
(312) 578-6900
Certification Program

[Marble]   Contact Turnaround Management Association     [TMA]

To become a member, or obtain more information about TMA, please contact:
Turnaround Management Association (www.Turnaround.org)
Linda M. Delgadillo, Executive Director
150 South Wacker Drive, Suite 900
Chicago, Illinois 60606 USA
(312) 578-6900
History of TMA

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We at Strategic Management Partners, Inc. are Certified Turnaround Professionals, and support this fine CTP Program and TMA. Our principal is Past Chairman of the Turnaround Management Association [an International Professional Association with over 2,500 members], serves on TMA's Board of Directors, and serves on ACTP's Board of Directors. Contact us to discuss how our detailed methodologies, processes, and investing strategies can work for you.

There is more to Strategic Management Partner's: Home Page   Turnaround Manager Page





[Marble]   Contact Information

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John M. Collard, Chairman, CTP   [CTP Image]
Strategic Management Partners, Inc.
522 Horn Point Drive
Annapolis, Maryland [MD] 21403
Voice 410-263-9100 Facsimile 410-263-6094 E-Mail Strategist@aol.com

We serve as experts for comment or quote, please contact us at 410-263-9100 [Telephone]

There is more to Strategic Management Partner's: Home Page  Turnaround Manager Page

We welcome constructive inquires, please send via E-Mail to:   Strategist. [Mailbox]

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