CEPA (CERTIFIED EXIT PLANNING ADVISOR) EXAM PREP 2025
QUESTIONS WITH 100% CORRECT ANSWERS!!!
Question 1
What is the calculation for Recasted EBITDA?
A) EBITDA - Depreciation = Recasted EBITDA
B) EBITDA + Taxes = Recasted EBITDA
C) Addbacks + EBITDA = Recasted EBITDA
D) Sales x Market Multiple = Recasted EBITDA
E) EBITDA + Debt = Recasted EBITDA
Correct Answer: C) Addbacks + EBITDA = Recasted EBITDA
Rationale: Recasted (or Normalized) EBITDA is calculated by taking EBITDA and adding
back one-time or non-recurring expenses to get a true picture of operational cash flow.
Question 2
What does EBITDA stand for?
A) Earnings Before Income, Taxes, Debt, & Amortization
B) Earnings Before Interest, Taxes, Depreciation, & Amortization
C) Equity Before Interest, Taxes, Depreciation, & Assets
D) Earnings Before Interest, Tangibles, Depreciation, & Amortization
E) Equity Before Income, Taxes, Debt, & Assets
Correct Answer: B) Earnings Before Interest, Taxes, Depreciation, & Amortization
Rationale: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, &
Amortization.
Question 3
What are the three gaps identified within the Value Acceleration Methodology?
A) Sales Gap, Marketing Gap, & Management Gap
B) Wealth Gap, Value Gap, & Profit Gap
C) Personal Gap, Financial Gap, & Business Gap
D) Human Capital Gap, Structural Capital Gap, & Customer Capital Gap
E) Strategy Gap, Execution Gap, & Culture Gap
Correct Answer: B) Wealth Gap, Value Gap, & Profit Gap
,Rationale: The three gaps within the Value Acceleration Methodology are the Wealth Gap,
Value Gap, & Profit Gap.
Question 4
What are the Five Stages of Value Maturity in order?
A) Build, Protect, Harvest, Identify, Manage
B) Identify, Protect, Build, Harvest, Manage
C) Identify, Build, Protect, Manage, Harvest
D) Protect, Identify, Build, Harvest, Manage
E) Discover, Prepare, Decide, Harvest, Manage
Correct Answer: B) Identify, Protect, Build, Harvest, Manage
Rationale: The Five Stages of Value Maturity, in order, are Identify, Protect, Build, Harvest,
Manage.
Question 5
In the Five Stages of Value Maturity, what occurs in the "Identify" stage?
A) The owner exits the company and harvests its value.
B) Strategic actions are taken to build culture and communication.
C) Systems are put in place to de-risk the business.
D) Identify and asses the business value. Understand how ready and attractive the business is.
What is the current value? What is it's potential value? What are the gaps?
E) The owner's personal wealth is managed post-exit.
Correct Answer: D) Identify and asses the business value. Understand how ready and
attractive the business is. What is the current value? What is it's potential value? What are
the gaps?
Rationale: The "Identify" stage involves identifying and assessing the business value,
readiness, and gaps.
Question 6
What are considered the "Value Creation" stages within the Five Stages of Value Maturity?
A) Identify and Harvest
B) Protect and Build
C) Harvest and Manage
,D) Identify and Manage
E) Build and Harvest
Correct Answer: B) Protect Value and Build Value
Rationale: The "Value Creation" stages within the Five Stages of Value Maturity are
Protect Value and Build Value.
Question 7
In the Five Stages of Value Maturity, what occurs in the "Protect" stage?
A) The owner sells the company to a third party.
B) This is when strategic actions like culture building and new product development occur.
C) This is when the business value is first assessed to identify gaps.
D) Protect what you have because "build" means more risk. Make sure the right systems are in
place.
E) This stage focuses on managing the proceeds after the harvest.
Correct Answer: D) Protect what you have because "build" means more risk. Make sure the
right systems are in place: the right financial advisor, right financial plan, documented
standard operating procedures within the business, insurance, etc. Protect always comes
before Build. Non-strategic actions are ALWAYS before strategic actions.
Rationale: The "Protect" stage involves protecting existing value by implementing non-
strategic actions like documentation and having the right advisory team in place.
Question 8
In the Five Stages of Value Maturity, what occurs in the "Build" stage?
A) This is made up of strategic actions including culture building, communication building,
personnel changes, new products/improvements, etc.
B) This is when the owner exits the company and harvests its value.
C) This is when the business value is identified and assessed.
D) This is when risk mitigation strategies are first implemented.
E) This is when personal and financial planning begins.
Correct Answer: A) This is made up of strategic actions including culture building,
communication building, personnel changes, new products/improvements, etc.
, Rationale: The "Build" stage is made up of strategic actions including culture building,
communication building, personnel changes, new products/improvements, etc.
Question 9
In the Five Stages of Value Maturity, what occurs in the "Harvest" stage?
A) This is when the business's current value and potential value are first assessed.
B) This is when strategic actions like culture building are implemented.
C) This is when the owner exits the company and harvests its value.
D) This is when risk mitigation strategies are put in place.
E) This is when the owner's personal goals are established.
Correct Answer: C) This is when the owner exits the company and harvests its value
Rationale: The "Harvest" stage is when the owner exits the company and harvests its value.
Question 10
Simply put, what is exit planning?
A) A retirement plan
B) Good Business strategy
C) A tax avoidance scheme
D) A one-time transaction
E) A way to liquidate a failing business
Correct Answer: B) Good Business strategy
Rationale: Exit planning is fundamentally good business strategy.
Question 11
What are the Four Intangible Capitals, also known as the "Four C's"?
A) Cash, Credit, Capital, and Collateral
B) Culture, Communication, Change, and Commitment
C) Human Capital, Structural Capital, Customer Capital, & Social Capital
D) Customers, Competitors, Company, and Culture
E) Cost, Capital, Cash, and Credit
Correct Answer: C) Human Capital, Structural Capital, Customer Capital, & Social Capital
Rationale: The Four intangible Capitals are Human Capital, Structural Capital, Customer
Capital, & Social Capital.
QUESTIONS WITH 100% CORRECT ANSWERS!!!
Question 1
What is the calculation for Recasted EBITDA?
A) EBITDA - Depreciation = Recasted EBITDA
B) EBITDA + Taxes = Recasted EBITDA
C) Addbacks + EBITDA = Recasted EBITDA
D) Sales x Market Multiple = Recasted EBITDA
E) EBITDA + Debt = Recasted EBITDA
Correct Answer: C) Addbacks + EBITDA = Recasted EBITDA
Rationale: Recasted (or Normalized) EBITDA is calculated by taking EBITDA and adding
back one-time or non-recurring expenses to get a true picture of operational cash flow.
Question 2
What does EBITDA stand for?
A) Earnings Before Income, Taxes, Debt, & Amortization
B) Earnings Before Interest, Taxes, Depreciation, & Amortization
C) Equity Before Interest, Taxes, Depreciation, & Assets
D) Earnings Before Interest, Tangibles, Depreciation, & Amortization
E) Equity Before Income, Taxes, Debt, & Assets
Correct Answer: B) Earnings Before Interest, Taxes, Depreciation, & Amortization
Rationale: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, &
Amortization.
Question 3
What are the three gaps identified within the Value Acceleration Methodology?
A) Sales Gap, Marketing Gap, & Management Gap
B) Wealth Gap, Value Gap, & Profit Gap
C) Personal Gap, Financial Gap, & Business Gap
D) Human Capital Gap, Structural Capital Gap, & Customer Capital Gap
E) Strategy Gap, Execution Gap, & Culture Gap
Correct Answer: B) Wealth Gap, Value Gap, & Profit Gap
,Rationale: The three gaps within the Value Acceleration Methodology are the Wealth Gap,
Value Gap, & Profit Gap.
Question 4
What are the Five Stages of Value Maturity in order?
A) Build, Protect, Harvest, Identify, Manage
B) Identify, Protect, Build, Harvest, Manage
C) Identify, Build, Protect, Manage, Harvest
D) Protect, Identify, Build, Harvest, Manage
E) Discover, Prepare, Decide, Harvest, Manage
Correct Answer: B) Identify, Protect, Build, Harvest, Manage
Rationale: The Five Stages of Value Maturity, in order, are Identify, Protect, Build, Harvest,
Manage.
Question 5
In the Five Stages of Value Maturity, what occurs in the "Identify" stage?
A) The owner exits the company and harvests its value.
B) Strategic actions are taken to build culture and communication.
C) Systems are put in place to de-risk the business.
D) Identify and asses the business value. Understand how ready and attractive the business is.
What is the current value? What is it's potential value? What are the gaps?
E) The owner's personal wealth is managed post-exit.
Correct Answer: D) Identify and asses the business value. Understand how ready and
attractive the business is. What is the current value? What is it's potential value? What are
the gaps?
Rationale: The "Identify" stage involves identifying and assessing the business value,
readiness, and gaps.
Question 6
What are considered the "Value Creation" stages within the Five Stages of Value Maturity?
A) Identify and Harvest
B) Protect and Build
C) Harvest and Manage
,D) Identify and Manage
E) Build and Harvest
Correct Answer: B) Protect Value and Build Value
Rationale: The "Value Creation" stages within the Five Stages of Value Maturity are
Protect Value and Build Value.
Question 7
In the Five Stages of Value Maturity, what occurs in the "Protect" stage?
A) The owner sells the company to a third party.
B) This is when strategic actions like culture building and new product development occur.
C) This is when the business value is first assessed to identify gaps.
D) Protect what you have because "build" means more risk. Make sure the right systems are in
place.
E) This stage focuses on managing the proceeds after the harvest.
Correct Answer: D) Protect what you have because "build" means more risk. Make sure the
right systems are in place: the right financial advisor, right financial plan, documented
standard operating procedures within the business, insurance, etc. Protect always comes
before Build. Non-strategic actions are ALWAYS before strategic actions.
Rationale: The "Protect" stage involves protecting existing value by implementing non-
strategic actions like documentation and having the right advisory team in place.
Question 8
In the Five Stages of Value Maturity, what occurs in the "Build" stage?
A) This is made up of strategic actions including culture building, communication building,
personnel changes, new products/improvements, etc.
B) This is when the owner exits the company and harvests its value.
C) This is when the business value is identified and assessed.
D) This is when risk mitigation strategies are first implemented.
E) This is when personal and financial planning begins.
Correct Answer: A) This is made up of strategic actions including culture building,
communication building, personnel changes, new products/improvements, etc.
, Rationale: The "Build" stage is made up of strategic actions including culture building,
communication building, personnel changes, new products/improvements, etc.
Question 9
In the Five Stages of Value Maturity, what occurs in the "Harvest" stage?
A) This is when the business's current value and potential value are first assessed.
B) This is when strategic actions like culture building are implemented.
C) This is when the owner exits the company and harvests its value.
D) This is when risk mitigation strategies are put in place.
E) This is when the owner's personal goals are established.
Correct Answer: C) This is when the owner exits the company and harvests its value
Rationale: The "Harvest" stage is when the owner exits the company and harvests its value.
Question 10
Simply put, what is exit planning?
A) A retirement plan
B) Good Business strategy
C) A tax avoidance scheme
D) A one-time transaction
E) A way to liquidate a failing business
Correct Answer: B) Good Business strategy
Rationale: Exit planning is fundamentally good business strategy.
Question 11
What are the Four Intangible Capitals, also known as the "Four C's"?
A) Cash, Credit, Capital, and Collateral
B) Culture, Communication, Change, and Commitment
C) Human Capital, Structural Capital, Customer Capital, & Social Capital
D) Customers, Competitors, Company, and Culture
E) Cost, Capital, Cash, and Credit
Correct Answer: C) Human Capital, Structural Capital, Customer Capital, & Social Capital
Rationale: The Four intangible Capitals are Human Capital, Structural Capital, Customer
Capital, & Social Capital.
