CEPA Exam QUESTIONS AND WELL DETAILED
ANSWERS
__% of owners have no WRITTEN transition plan. - ANSWER>>79
__% have done no planning at all. - ANSWER>>48
__% have no written personal THIRD ACT plan. - ANSWER>>94
__% of owners plan to transition over the next 10 years (representing ____
million
businesses and over $___ trillion in wealth). - ANSWER>>76%, 4.5 million, $10
trillion
___ of business owners have no transition plan. - ANSWER>>49%
More than __% of businesses that are put on the market do not sell. -
ANSWER>>70
Only __% of family-owned
businesses transition to the second generation, and only __% survive to the
third. - ANSWER>>30%, 12%
A Successful Exit Strategy Has Three Legs: - ANSWER>>Maximizes Transferrable
Business Value, Ensures Owner is Financially Prepared, and Ensures there is a
plan for "What Next?"
5 Stages of the Value Maturity Index - ANSWER>>Identify, Protect, Build,
Harvest, and Manage Value
The 4 C's - ANSWER>>Human, Structural, Customer, Social
,Strategic Value factors you control - ANSWER>>Predictable Cash Flow, Clean
Balance Sheet, Size Matters!
Strategic Value factors you control some of - ANSWER>>Private capital market
conditions, Terms/Exit Option, Tangibles (value factors)
Traditional accounting systems are setup to provided regular feedback on
_____________________, yet your ________________________
are the direct drivers of business attractiveness. - ANSWER>>tangible assets,
intangible assets
Value Acceleration measures the value of your ________________________. -
ANSWER>>intangible assets
Value Acceleration is a proven process that focuses on value growth and
aligning __________________, __________________, and __________________
goals. - ANSWER>>business, personal, and financial
Value Acceleration is a proven process that focuses on ____________________
and aligning business, personal, and financial goals. - ANSWER>>value growth
An exit plan asks and ANSWERs all the ________________, _______________,
_______________, _______________, and ___________ questions involved in
transitioning a privately owned business. - ANSWER>>business, personal,
financial, legal, and tax
Exit Planning combines the __________, ______________, _______________,
and _______________ into a clear, simple strategy to build a business that is
transferable through strong __________, ______________, _______________,
and _______________ capital. - ANSWER>>plan, concept, effort, and process,
human, structural, customer, and social
,______________________ protects future you from present you; and, vise
versa! - ANSWER>>Proper planning
Where you will be 5 years from now is determined by
______________________________________ and
___________________________________. - ANSWER>>the books you read and
the people you associate with today.
The "quarterback" is the ____________________________________________. -
ANSWER>>personal financial planning team
___% of business owners do not have a written FINANCIAL plan. - ANSWER>>75
Proper financial planning ANSWERs a huge question - What is the
___________________? - ANSWER>>Wealth Gap
A first step in financial planning: gather the personal ______________________
data. - ANSWER>>balance sheet
A _______________________ provides for the stability and continuity of a
closely held business and is a crucial part of a business owner's overall
succession and estate plan. - ANSWER>>buy-sell agreement
Triggering events may include: - ANSWER>>Death of an owner, Disability of an
owner, An offer by an outside party to purchase the owner's interest,
Termination of an owner's employment, Divorce of an owner
There are many acceptable ways to execute investment plans post-exit. The key
is to manage the ______________________ within a framework focused on
________________. - ANSWER>>family expectations, goals.
Families without advisors often decide to ___________________. -
ANSWER>>do nothing
, The ______ is one of the greatest wealth building tools if used correctly. -
ANSWER>>IRC
Systems don't solve problems, ___________ do. - ANSWER>>people
You don't have to choose between today and the future. Doing the right things
today ensures ________________________________. - ANSWER>>a successful
exit in the future
When you consider your net worth, your business is the most significant line
item on paper; in fact, according to most financial planners, it's like __ to __% of
your net worth. - ANSWER>>80 to 90%
Business value is not _____________. - ANSWER>>liquid
The Value Acceleration Methodology can increase your net worth by a factor of
_____________. - ANSWER>>five
There are approximately ______________ privately held businesses in the
United States today. While most of those are holding companies with no
payroll, roughly __________ are operating companies. - ANSWER>>28 million,
six million
_________________________ businesses do $5 million or less in sales. -
ANSWER>>Micro Market
The ______________________________ is defined as businesses with sales
between $5 million and $100 million - ANSWER>>Lower Middle Market
The __________________________________ has sales over $100 million. -
ANSWER>>Upper Middle Market
ANSWERS
__% of owners have no WRITTEN transition plan. - ANSWER>>79
__% have done no planning at all. - ANSWER>>48
__% have no written personal THIRD ACT plan. - ANSWER>>94
__% of owners plan to transition over the next 10 years (representing ____
million
businesses and over $___ trillion in wealth). - ANSWER>>76%, 4.5 million, $10
trillion
___ of business owners have no transition plan. - ANSWER>>49%
More than __% of businesses that are put on the market do not sell. -
ANSWER>>70
Only __% of family-owned
businesses transition to the second generation, and only __% survive to the
third. - ANSWER>>30%, 12%
A Successful Exit Strategy Has Three Legs: - ANSWER>>Maximizes Transferrable
Business Value, Ensures Owner is Financially Prepared, and Ensures there is a
plan for "What Next?"
5 Stages of the Value Maturity Index - ANSWER>>Identify, Protect, Build,
Harvest, and Manage Value
The 4 C's - ANSWER>>Human, Structural, Customer, Social
,Strategic Value factors you control - ANSWER>>Predictable Cash Flow, Clean
Balance Sheet, Size Matters!
Strategic Value factors you control some of - ANSWER>>Private capital market
conditions, Terms/Exit Option, Tangibles (value factors)
Traditional accounting systems are setup to provided regular feedback on
_____________________, yet your ________________________
are the direct drivers of business attractiveness. - ANSWER>>tangible assets,
intangible assets
Value Acceleration measures the value of your ________________________. -
ANSWER>>intangible assets
Value Acceleration is a proven process that focuses on value growth and
aligning __________________, __________________, and __________________
goals. - ANSWER>>business, personal, and financial
Value Acceleration is a proven process that focuses on ____________________
and aligning business, personal, and financial goals. - ANSWER>>value growth
An exit plan asks and ANSWERs all the ________________, _______________,
_______________, _______________, and ___________ questions involved in
transitioning a privately owned business. - ANSWER>>business, personal,
financial, legal, and tax
Exit Planning combines the __________, ______________, _______________,
and _______________ into a clear, simple strategy to build a business that is
transferable through strong __________, ______________, _______________,
and _______________ capital. - ANSWER>>plan, concept, effort, and process,
human, structural, customer, and social
,______________________ protects future you from present you; and, vise
versa! - ANSWER>>Proper planning
Where you will be 5 years from now is determined by
______________________________________ and
___________________________________. - ANSWER>>the books you read and
the people you associate with today.
The "quarterback" is the ____________________________________________. -
ANSWER>>personal financial planning team
___% of business owners do not have a written FINANCIAL plan. - ANSWER>>75
Proper financial planning ANSWERs a huge question - What is the
___________________? - ANSWER>>Wealth Gap
A first step in financial planning: gather the personal ______________________
data. - ANSWER>>balance sheet
A _______________________ provides for the stability and continuity of a
closely held business and is a crucial part of a business owner's overall
succession and estate plan. - ANSWER>>buy-sell agreement
Triggering events may include: - ANSWER>>Death of an owner, Disability of an
owner, An offer by an outside party to purchase the owner's interest,
Termination of an owner's employment, Divorce of an owner
There are many acceptable ways to execute investment plans post-exit. The key
is to manage the ______________________ within a framework focused on
________________. - ANSWER>>family expectations, goals.
Families without advisors often decide to ___________________. -
ANSWER>>do nothing
, The ______ is one of the greatest wealth building tools if used correctly. -
ANSWER>>IRC
Systems don't solve problems, ___________ do. - ANSWER>>people
You don't have to choose between today and the future. Doing the right things
today ensures ________________________________. - ANSWER>>a successful
exit in the future
When you consider your net worth, your business is the most significant line
item on paper; in fact, according to most financial planners, it's like __ to __% of
your net worth. - ANSWER>>80 to 90%
Business value is not _____________. - ANSWER>>liquid
The Value Acceleration Methodology can increase your net worth by a factor of
_____________. - ANSWER>>five
There are approximately ______________ privately held businesses in the
United States today. While most of those are holding companies with no
payroll, roughly __________ are operating companies. - ANSWER>>28 million,
six million
_________________________ businesses do $5 million or less in sales. -
ANSWER>>Micro Market
The ______________________________ is defined as businesses with sales
between $5 million and $100 million - ANSWER>>Lower Middle Market
The __________________________________ has sales over $100 million. -
ANSWER>>Upper Middle Market
