Our Diagnostic Process
The Enterprise Stability Diagnostic™
Five structural dimensions, one composite index, two stages of depth. Built to identify hidden exposure — and uncover financial opportunity — before advanced planning begins.
Request a Preliminary Diagnostic
Diagnose first. Then plan.
Most advisory begins with a solution and works backward to a justification. ES Partners runs the diagnostic before any recommendation exists.
The purpose is focused: find where structural exposure sits and where hidden opportunity sits, such as avoidable tax friction, trapped liquidity and value not yet protected. Test both against documents, and prioritize what matters. Whatever planning follows is built on verified ground.
The diagnostic is not a sales process. It is the work.
The Five Structural Exposures™
Five dimensions. Select one.
Weakness in one usually masks or magnifies exposure in another.
01 — EVI™ · Enterprise Value Integrity
Is enterprise value credible, defensible and transferable?
EVI measures whether enterprise value is credible, defensible and transferable based on normalized financial performance, market-based assumptions and the structural realities underlying the business.
Signs of exposure
- Valuation assumption has not been tested in more than three years
- Owner compensation, related-party arrangements or personal expenses run through the business
- Revenue concentration in a small number of customers or contracts
- Value depends materially on the owner’s personal relationships or presence
What the diagnostic examines
Normalization adjustments, concentration risk, transferability, and the gap between assumed and defensible value.
02 — LCR™ · Liquidity Coverage Ratio
Business liquidity when it is actually needed.
LCR measures whether accessible liquidity and capital are sufficient relative to enterprise obligations and likely liquidity needs, including the ability to sustain operations and execute strategy during periods of stress or transition without disrupting value.
Signs of exposure
- Limited accessible liquidity outside normal working capital
- Heavy reliance on emergency borrowing or forced liquidation
- Significant owner wealth concentrated inside the enterprise
- Material obligations without identified liquidity sources
- No modeled liquidity reserve for adverse or transitional events
What the diagnostic examines
Funded versus unfunded obligations, key person risk, accessible capital sources, and the timing of likely liquidity events.
03 — DCT™ · Debt Compression Tolerance
Debt resilience when business conditions compress.
DCT measures how well the enterprise can absorb leverage and debt-service pressure when revenue declines, margins tighten or liquidity becomes constrained, without materially impairing cash flow, flexibility or enterprise stability.
Signs of exposure
- Covenants have not been reviewed against current performance
- Variable-rate exposure without a plan for rate movement
- Debt maturities cluster within a narrow window
- A downturn in one customer or segment would breach coverage
What the diagnostic examines
Debt-service capacity under stress, covenant headroom, maturity concentration, variable-rate exposure, personal guarantees, liquidity reserves and the interaction between debt obligations and operating cash flow.
04 — SEI™ · Succession Enforceability Index™
Can ownership and control transition as intended?
SEI measures whether succession and exit arrangements are documented, funded, enforceable and executable, so ownership, control and enterprise continuity can transition as intended.
Signs of exposure
- Buy-sell agreement predates the current ownership structure or valuation
- Successor is identified but not prepared, authorized or funded
- Family and non-family succession interests are unresolved
- Operating agreement and estate documents conflict
What the diagnostic examines
The current status and funding of succession agreements, triggering events, valuation mechanisms, decision-making authority, transition governance, and alignment among business, estate and family succession plans.
05 — TFI™ · Tax Friction Index™
Where is tax friction quietly reducing retained value?
Tax Friction Index™ examines where entity design, ownership, compensation, distributions and future transition strategy may be creating avoidable tax drag or structural leakage. The objective is not simply to identify taxes paid, but to determine where better coordination may preserve additional capital for the business owner’s larger objectives.
Signs of exposure
- Entity structure has not been reviewed since formation or a major change
- Exit or transfer is contemplated without tax modeling
- Compensation and distribution design is driven by habit rather than structure
- Estate plan and business structure were built by different advisors at different times
What the diagnostic examines
Entity and ownership structure, compensation and distribution design, recurring tax drag, exit and transfer taxation, retained liquidity, estate coordination and alignment between business and personal tax strategy.
Structural Stability Index™
Five dimensions. One composite structural reading.
The Structural Stability Index™ integrates the five diagnostic dimensions into a single comparative reading of the enterprise’s structural condition while identifying where exposure is concentrated.
A preliminary index from Call 01. A validated index in Call 02, presented against the owner’s own starting assumptions.
The Structural Stability Index™ uses ES Partners’ proprietary diagnostic framework. Selected scoring criteria may be reviewed with clients during the diagnostic process, while the complete methodology, weighting and analytical framework remain proprietary.
EVI™ 4 + LCR™ 3 + DCT™ 5 + SEI™ 4 + TFI™ 4 = SSI™ 20 / 25
Each of the five areas is scored from 1 to 5. Added together they give the SSI™, on a 5–25 scale. Scores shown are an example.
Two stages of depth.
Two calls frame the work. Call 01 is the Preliminary Diagnostic. If its findings show a deeper analysis would help, ES Partners may recommend the Formal Diagnostic: we review your documents between calls, then present validated findings and strategic direction in Call 02. The first call doesn’t commit you to the second.
From diagnosis to implementation led by ES Partners.
ES Partners leads the process from the first diagnostic conversation through implementation. Where a finding needs action, ES Partners leads implementation through our team of qualified professionals, and existing client advisors may participate where appropriate, all working from the same facts toward the same objective.
- Call 01 · Preliminary Diagnostic Initial structural assessment across the five diagnostic dimensions.
- Between calls · Formal Document-Based Analysis When the Formal ESD™ is engaged, ES Partners reviews the requested financial, tax, legal, valuation and planning documentation and validates or revises the preliminary findings.
- Call 02 · Findings & Strategic Direction Presentation of the validated findings, Structural Stability Index™, written structural roadmap, priorities and implementation considerations.
- When action is warranted · Implementation Led by ES Partners ES Partners leads implementation through our team of qualified professionals. Existing client advisors may participate where appropriate.
Before a diagnostic, owners ask.
Answers to common questions about the Preliminary and Formal Diagnostic, and how ES Partners works with business owners.
What does the Preliminary Diagnostic require from me?
A conversation. No documents are required to begin. The preliminary assessment draws on your knowledge of the business and produces a preliminary Structural Stability Index™ based on what you share.
Is the Preliminary Diagnostic really complimentary?
Yes, for qualified owners of established privately held businesses. It helps determine whether a deeper formal engagement is appropriate, and there is no obligation to proceed to the Formal Diagnostic.
What is the difference between the Preliminary and Formal Diagnostic?
The preliminary assessment is based on your assumptions. The Formal Diagnostic tests those assumptions against documentation, valuation analysis and tax analysis, and presents the difference.
Do I need to replace my current advisors?
No. ES Partners leads the strategy and implementation process through our team of qualified professionals, and your existing CPA, attorney or financial advisor may participate where appropriate, provided they are willing and able to take part in the agreed strategy. When additional specialized capabilities are needed, or an existing advisor is unable or unwilling to participate, the appropriate professional is brought into our team of qualified professionals.
How long does the Formal Diagnostic take?
Most Formal Diagnostics are completed within 7–10 business days after all requested documentation is received. More complex structures may require additional time, which we communicate in advance.
What size of business is ES Partners designed for?
Established, profitable business owners: often $1M+ in annual revenue, but more importantly facing meaningful tax exposure, accumulated wealth, or liquidity, succession, estate or retirement complexity. Revenue alone isn’t the test.
Is the Structural Stability Index™ methodology available?
The five dimensions and what each examines are described on this page. Selected scoring criteria may be reviewed with you during the diagnostic process, while the complete methodology, weighting and analytical framework remain proprietary.
Does ES Partners sell financial products?
ES Partners is diagnostic-led and implementation-capable. We do not begin with a product or predetermined strategy. When the findings identify a need for action, ES Partners leads implementation through our team of qualified professionals across the required tax, legal, wealth, retirement, estate, liquidity, risk-management and succession disciplines. Existing client advisors may participate where appropriate. Where a strategy requires a specific professional license or credential, that component is completed by the appropriately licensed or credentialed member of our professional team. ES Partners leads the overall strategy, sequencing and implementation process so the client receives one integrated plan rather than a collection of disconnected recommendations. Diagnose first. Implement through one team.
Determine how structurally stable your business is.
The Preliminary Diagnostic is complimentary for qualified business owners. No documents are needed to start.
Request a Preliminary Diagnostic