CEPA TERM - SESSION 5 EXAM
QUESTIONS WITH VERIFIED
ANSWERS
What is the maximum tax deferral percentage that can be achieved through an
ESOP? - Answer-100%
What is the standard transition time for implementing an ESOP? - Answer-4 to 6
years
What are some seller advantages of an ESOP? - Answer-i) Retention and continuity
of local HQ / jobs
ii) "Legacy" - Company can continue and be sustained
iii) Diversify Seller's net worth (can sell portion, retain portion)
iv) Known Buyer - controls timing and communication
v) Owner can retain operational and board control during transition
What are 4 advantages of working in teams? - Answer-Often and better overall,
more well-connected prouct
Mindshare
Referrals: Current and future
Emotional Intelligence
What are 4 disadvantages of working in teams? - Answer-Group Think
Can be slower
More Expensive
More Complicated
What is familiness? - Answer-A unique bundle of resources resulting from the
interaction of family, individuals and business. Not genetically predetermined.
True or false, family businesses tend to outcompete non-family businesses? -
Answer-True
How do you address team challenges early in the process? - Answer-•Education
(owner and advisor)
•Chapter projects & community outreach
•Know the methodology...and your place in it
•Workshop demonstrating the holistic approach
•Speaking and writing builds credibility
•Website
•Happy Hours
How do you handle when a team already exists upon your arrival on scene? -
Answer-Team building upfront and buy-in on a holistic approach.
What makes an effective team (TCCAR)? - Answer-Trust
, Conflict (Resolution)
Commitment
Accountability
Results
Reasons why advisors and professionals will not work well within a team include: -
Answer-A) Fear of being displaced
B) Fear of losing control or not being in control
C) Fear of losing their relationship with the owner
D) Lack of knowledge or experience
E) Creation of inner team politics
What is collaboration? - Answer-A cooperative arrangement where two or more
people, which may or may not have a previous relationship, work jointly towards a
common goal.
What two things do you need to the commitment of the members of your team? -
Answer-Clear organizing principle, and buy-in from all members to work towards that
goal.
What are the organizing principles of a CEPA team? - Answer-The three legs of the
stool - Personal, Business, Financial
Applied through the Value Acceleration Methodology™. Where we concentrate on
enterprise value while aligning personal and financial goals. Placing the business
owner and their family in the center. Collaboration amongst advisors. Operating
outside our silos.
What is the common goal of the team, no matter who is in the door first? - Answer-
Get the owner to the TRIGGERING EVENT!
What are 4 ways you can refocus the team to attentiveness: - Answer-- Set and
publish clear goals
- Publish declaration of results
- Create results-based rewards
- Lead for results
True or false: Teams help deliver a better-quality product to the business owner
because they create synergy, thus generating performance greater than the sum of
the performance of its individual members. - Answer-True
What are three good methods for building trust among team members? - Answer-1)
Share common experiences
2) Become familiar with how each member prefers to communicate and make
decisions
3) Get to know one another socially
What is are corrosive elements within a team? - Answer-A) Absence of trust
B) Conflict avoidance
C) Ambiguity
D) Lack of accountability
QUESTIONS WITH VERIFIED
ANSWERS
What is the maximum tax deferral percentage that can be achieved through an
ESOP? - Answer-100%
What is the standard transition time for implementing an ESOP? - Answer-4 to 6
years
What are some seller advantages of an ESOP? - Answer-i) Retention and continuity
of local HQ / jobs
ii) "Legacy" - Company can continue and be sustained
iii) Diversify Seller's net worth (can sell portion, retain portion)
iv) Known Buyer - controls timing and communication
v) Owner can retain operational and board control during transition
What are 4 advantages of working in teams? - Answer-Often and better overall,
more well-connected prouct
Mindshare
Referrals: Current and future
Emotional Intelligence
What are 4 disadvantages of working in teams? - Answer-Group Think
Can be slower
More Expensive
More Complicated
What is familiness? - Answer-A unique bundle of resources resulting from the
interaction of family, individuals and business. Not genetically predetermined.
True or false, family businesses tend to outcompete non-family businesses? -
Answer-True
How do you address team challenges early in the process? - Answer-•Education
(owner and advisor)
•Chapter projects & community outreach
•Know the methodology...and your place in it
•Workshop demonstrating the holistic approach
•Speaking and writing builds credibility
•Website
•Happy Hours
How do you handle when a team already exists upon your arrival on scene? -
Answer-Team building upfront and buy-in on a holistic approach.
What makes an effective team (TCCAR)? - Answer-Trust
, Conflict (Resolution)
Commitment
Accountability
Results
Reasons why advisors and professionals will not work well within a team include: -
Answer-A) Fear of being displaced
B) Fear of losing control or not being in control
C) Fear of losing their relationship with the owner
D) Lack of knowledge or experience
E) Creation of inner team politics
What is collaboration? - Answer-A cooperative arrangement where two or more
people, which may or may not have a previous relationship, work jointly towards a
common goal.
What two things do you need to the commitment of the members of your team? -
Answer-Clear organizing principle, and buy-in from all members to work towards that
goal.
What are the organizing principles of a CEPA team? - Answer-The three legs of the
stool - Personal, Business, Financial
Applied through the Value Acceleration Methodology™. Where we concentrate on
enterprise value while aligning personal and financial goals. Placing the business
owner and their family in the center. Collaboration amongst advisors. Operating
outside our silos.
What is the common goal of the team, no matter who is in the door first? - Answer-
Get the owner to the TRIGGERING EVENT!
What are 4 ways you can refocus the team to attentiveness: - Answer-- Set and
publish clear goals
- Publish declaration of results
- Create results-based rewards
- Lead for results
True or false: Teams help deliver a better-quality product to the business owner
because they create synergy, thus generating performance greater than the sum of
the performance of its individual members. - Answer-True
What are three good methods for building trust among team members? - Answer-1)
Share common experiences
2) Become familiar with how each member prefers to communicate and make
decisions
3) Get to know one another socially
What is are corrosive elements within a team? - Answer-A) Absence of trust
B) Conflict avoidance
C) Ambiguity
D) Lack of accountability
