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CEPA Study Set – Questions & Detailed Answers
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CEPA Study Set – Questions & Detailed Answers
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CEPA Study Set – Questions & Detailed AnswersValue Accerelation Methodology 3 Gates Right Ans - 1. Discover
2. Prepare
3. Decide
Hint: The DePutY accelerated after he saw me
Discover Gate Items Right Ans - 1. Conduct an Annual Business Valuation
2. Assess Personal, Financial, and Business
Prepare Gate Items Right Ans - 1. Personal and Financial Planning
2. Business Improvements
Both of these factor into (i) Assembling Proof and (ii) Prepare Master Plan
Decide Gate Items Right Ans - 1. Keep (continue to grow)
2. Sell (think exit options, increasing earnings, decreasing debt)
Triggering Event Right Ans - A Personal, Financial, and Business
assessment correlated to the business Range of Value
Goals should be S.M.A.R.T. Describe letters Right Ans - o Specific: Want
business go to go from $1MM to $2MM by doing X.
o Measurable: Want to have $100K/yr.
o Aspirational: Want to retire to spend more time with spouse
o Realistic: Can't triple in 5 months.
o Time-Based: Want to transfer business in 10 years.
One personal theme should be S.T.E.P Right Ans - Spiritual
Things
Experiences
People
Four words to test owners vision Right Ans - Belief
Passion
Opportunity
Focus
, Hint: Many FOBs (FOCUS, OPPORTUNITY, BELIEF) have VISION and PASSION
Four Cornerstones of Relentless Execution Right Ans - 1. Vision
2. Alignment
3. Accountability
4. Rhythm
Hint: VAAR (value at risk) is decreased with relentless execution
What is Workshop and benefits (don't need to know all 7 but have general
idea) Right Ans -
3 Legs of Stool Right Ans - 1. Maximize Business Value
2. Personal Financial Planning
3. Life after Business planning
ESOP Right Ans -
What percentage of privately held businesses that are offered for sale each
year ultimately do not sell? Right Ans - 80%
According to the Family Firm Institute, what percentage of family transitions
survive into the second generation? Right Ans - 30%
According to EPI's first national State of Owner Readiness Survey, what
percentage of business owners have done no exit planning at all? Right Ans
- 49%
5 D's Right Ans - Death.
Disability.
Divorce.
Disagreement.
Distress.
Business owners are leaving dollars on the table because they are not focusing
on what? Right Ans - C
Enterprise value
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