CEPA (CERTIFIED EXIT PLANNING
ADVISOR) EXAM PREP 2026 LATEST
UPDATE
What is the calculation for Recasted EBITDA? - ANSWERAddbacks + EBITDA =
Recasted EBITDA
What does EBITDA stand for? - ANSWEREarnings Before Interest, Taxes,
Depreciation, & Amortization
What are the three gaps within the Value Acceleration Methodology? - ANSWERWealth
Gap, Value Gap, & Profit Gap
What are the Five Stages of Value Maturity in order? - ANSWERIdentify, Protect, Build,
Harvest, Manage
In the Five Stages of Value Maturity, what occurs in the "Identify" stage? -
ANSWERIdentify 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?
What are considered the "Value Creation" stages within the Five Stages of Value
Maturity? - ANSWERProtect Value and Build Value
In the Five Stages of Value Maturity, what occurs in the "Protect" stage? -
ANSWERProtect 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.
In the Five Stages of Value Maturity, what occurs in the "Build" stage? - ANSWERThis
is made up of strategic actions including culture building, communication building,
personnel changes, new products/improvements, etc.
In the Five Stages of Value Maturity, what occurs in the "Harvest" stage? -
ANSWERThis is when the owner exits the company and harvests its value
Simply put, what is exit planning? - ANSWERGood Business strategy
What are the Four intangible Capitals or "Four C's"? - ANSWERHuman Capital,
Structural Capital, Customer Capital, & Social Capital
,How much of a business' value (in percentage) is trapped inside the four intangible
capitals or "Four C's"? - ANSWER80%
What is Human Capital? - ANSWERIt's the people in the business. Employee tenure,
experience / talent level, management team succession plan, management team
strength, etc.
What is Structural Capital? - ANSWERThe most robust of the "Four C's", this includes
everything from the real estate, intellectual property, equipment, process &
documentation, IT, systems (including financial & accounting systems), etc.
What is Customer Captial? - ANSWERDepth of customer relationships, customer
entanglement, customer concentration / diversification, contracts, etc.
What is Social Capital? - ANSWERCulture within & outside the company. How people
relate outside of the company. This is developed over time after all other intangible
capitals are established/improved.
What are the three gates (in order) of the Value Acceleration Methodology? -
ANSWERDiscover, Prepare, & Decide
What are the Three Legs of the Stool? - ANSWERBusiness, Financial, & Personal
What is the Wealth Gap? - ANSWERUnderstanding the owner's wealth goal (how much
money they'll need to fulfill personal needs) and the current value of their assets (not
including their business). The gap or difference between these two is usually filled by
the business' value.
What is the Value Gap? - ANSWERThe difference between the owner's current
business value and the Best-In-Class business value.
What is the Profit Gap? - ANSWERThe difference between the owner's current
business profit (or recasted EBITDA) and the Best-In-Class business profit (or recasted
EBITDA)
The two concurrent paths are in which gate within the Value Acceleration Methodology?
- ANSWERThe Prepare Gate
What are the two concurrent paths within the Prepare Gate? - ANSWERThe risk
mitigation (De-risk) / business improvement path
AND
The personal/financial ("Vision") path
,What is the ONE goal of the Value Acceleration Methodology? - ANSWERTo drive
value across all three legs of the stool (business, financial & personal)
How much of an owner's wealth (in percentage) is locked in their business? -
ANSWER80-90%
What's the difference between a Lifestyle Business and Value Creator Business? -
ANSWERLifestyle business = good income; not transferrable
Value creator business = good income; transferable (owners treat their business like an
asset)
Most owners don't address what kind of planning? - ANSWERpersonal planning
What kind of planning could be the key to making an exit successful? -
ANSWERpersonal planning
What is the number one reason deals fail? - ANSWERseller's cold feet
The Value Maturity Index teaches owner's the concept that they can have
_____________ and ______________. - ANSWERvalue AND income (as long as the
owner focuses on VALUE first)
What is the formula to calculate value? - ANSWERCash (Recasted EBITDA) x MM
(market multiple) = Value
Sales X MM (market multiple) = Value
Every business trades in a ________________________. - ANSWERrange of value
Value Acceleration focuses on working with __________________________ while
improving _____________________________. - ANSWERaccounting systems;
intangible assets
Why is vision important? - ANSWERVison is needed to execute well, and it must come
from the owner / owner's family
What is Alignment? - ANSWERWhen the owner aligns his/her resources including
family, staff, Advisors, etc.
Which of the Five Stages of Value Maturity are in the Discover Gate? -
ANSWERIdentify
Which of the Five Stages of Value Maturity are in the Prepare Gate? - ANSWERProtect
and Build
, Which of the Five Stages of Value Maturity are in the Decide Gate? - ANSWERHarvest
What is the definition of a Triggering Event? - ANSWERA business valuation correlated
to a personal, financial, and business attractiveness and readiness assessment to
determine where the business value lands in the range of value
What is the definition of Exit Planning? - ANSWERExit Planning combines the plan,
concept, effort, and process into a clear, simple strategy to build a business that is
transferable through strong human, structural, customer, and social capital. The future
of you, your family, and your business are addressed by exit planning through creating
value today.
Who determines the multiple range of a company? - ANSWERThe private capital
market, but company's can control where they place in that range depending on the
strength of their intangibles. Value acceleration occurs by managing the controllable
factors (intangibles) within the company's multiple.
What're the scoring metrics for the Common Sense Scoring Scale? - ANSWER1) Weak
- haven't thought about it
2) Have thought about it but they don't have anything
3) Below average
4) Above average
5) Best-In-Class
6) Perfect; can't get better; this is rare
Most people fall in the 2, 3, 4 or 5 range. 1's and 6's are rare.
What are the Range of Values for the Common Sense Scoring Scale? - ANSWER50%
or less = weak; high risk
58% = average
67% = above average; low risk
72% or higher = best-in-class
What is the definition of Value Acceleration? - ANSWERA proven process that focuses
on value growth and aligning business, personal and financial goals.
As it relates to retirement planning, what are the three main business owner issues? -
ANSWER1) How much do I need?
2) What rate of return (ROR) do I need on my investments?
3) Addresses stock market volatility
ADVISOR) EXAM PREP 2026 LATEST
UPDATE
What is the calculation for Recasted EBITDA? - ANSWERAddbacks + EBITDA =
Recasted EBITDA
What does EBITDA stand for? - ANSWEREarnings Before Interest, Taxes,
Depreciation, & Amortization
What are the three gaps within the Value Acceleration Methodology? - ANSWERWealth
Gap, Value Gap, & Profit Gap
What are the Five Stages of Value Maturity in order? - ANSWERIdentify, Protect, Build,
Harvest, Manage
In the Five Stages of Value Maturity, what occurs in the "Identify" stage? -
ANSWERIdentify 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?
What are considered the "Value Creation" stages within the Five Stages of Value
Maturity? - ANSWERProtect Value and Build Value
In the Five Stages of Value Maturity, what occurs in the "Protect" stage? -
ANSWERProtect 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.
In the Five Stages of Value Maturity, what occurs in the "Build" stage? - ANSWERThis
is made up of strategic actions including culture building, communication building,
personnel changes, new products/improvements, etc.
In the Five Stages of Value Maturity, what occurs in the "Harvest" stage? -
ANSWERThis is when the owner exits the company and harvests its value
Simply put, what is exit planning? - ANSWERGood Business strategy
What are the Four intangible Capitals or "Four C's"? - ANSWERHuman Capital,
Structural Capital, Customer Capital, & Social Capital
,How much of a business' value (in percentage) is trapped inside the four intangible
capitals or "Four C's"? - ANSWER80%
What is Human Capital? - ANSWERIt's the people in the business. Employee tenure,
experience / talent level, management team succession plan, management team
strength, etc.
What is Structural Capital? - ANSWERThe most robust of the "Four C's", this includes
everything from the real estate, intellectual property, equipment, process &
documentation, IT, systems (including financial & accounting systems), etc.
What is Customer Captial? - ANSWERDepth of customer relationships, customer
entanglement, customer concentration / diversification, contracts, etc.
What is Social Capital? - ANSWERCulture within & outside the company. How people
relate outside of the company. This is developed over time after all other intangible
capitals are established/improved.
What are the three gates (in order) of the Value Acceleration Methodology? -
ANSWERDiscover, Prepare, & Decide
What are the Three Legs of the Stool? - ANSWERBusiness, Financial, & Personal
What is the Wealth Gap? - ANSWERUnderstanding the owner's wealth goal (how much
money they'll need to fulfill personal needs) and the current value of their assets (not
including their business). The gap or difference between these two is usually filled by
the business' value.
What is the Value Gap? - ANSWERThe difference between the owner's current
business value and the Best-In-Class business value.
What is the Profit Gap? - ANSWERThe difference between the owner's current
business profit (or recasted EBITDA) and the Best-In-Class business profit (or recasted
EBITDA)
The two concurrent paths are in which gate within the Value Acceleration Methodology?
- ANSWERThe Prepare Gate
What are the two concurrent paths within the Prepare Gate? - ANSWERThe risk
mitigation (De-risk) / business improvement path
AND
The personal/financial ("Vision") path
,What is the ONE goal of the Value Acceleration Methodology? - ANSWERTo drive
value across all three legs of the stool (business, financial & personal)
How much of an owner's wealth (in percentage) is locked in their business? -
ANSWER80-90%
What's the difference between a Lifestyle Business and Value Creator Business? -
ANSWERLifestyle business = good income; not transferrable
Value creator business = good income; transferable (owners treat their business like an
asset)
Most owners don't address what kind of planning? - ANSWERpersonal planning
What kind of planning could be the key to making an exit successful? -
ANSWERpersonal planning
What is the number one reason deals fail? - ANSWERseller's cold feet
The Value Maturity Index teaches owner's the concept that they can have
_____________ and ______________. - ANSWERvalue AND income (as long as the
owner focuses on VALUE first)
What is the formula to calculate value? - ANSWERCash (Recasted EBITDA) x MM
(market multiple) = Value
Sales X MM (market multiple) = Value
Every business trades in a ________________________. - ANSWERrange of value
Value Acceleration focuses on working with __________________________ while
improving _____________________________. - ANSWERaccounting systems;
intangible assets
Why is vision important? - ANSWERVison is needed to execute well, and it must come
from the owner / owner's family
What is Alignment? - ANSWERWhen the owner aligns his/her resources including
family, staff, Advisors, etc.
Which of the Five Stages of Value Maturity are in the Discover Gate? -
ANSWERIdentify
Which of the Five Stages of Value Maturity are in the Prepare Gate? - ANSWERProtect
and Build
, Which of the Five Stages of Value Maturity are in the Decide Gate? - ANSWERHarvest
What is the definition of a Triggering Event? - ANSWERA business valuation correlated
to a personal, financial, and business attractiveness and readiness assessment to
determine where the business value lands in the range of value
What is the definition of Exit Planning? - ANSWERExit Planning combines the plan,
concept, effort, and process into a clear, simple strategy to build a business that is
transferable through strong human, structural, customer, and social capital. The future
of you, your family, and your business are addressed by exit planning through creating
value today.
Who determines the multiple range of a company? - ANSWERThe private capital
market, but company's can control where they place in that range depending on the
strength of their intangibles. Value acceleration occurs by managing the controllable
factors (intangibles) within the company's multiple.
What're the scoring metrics for the Common Sense Scoring Scale? - ANSWER1) Weak
- haven't thought about it
2) Have thought about it but they don't have anything
3) Below average
4) Above average
5) Best-In-Class
6) Perfect; can't get better; this is rare
Most people fall in the 2, 3, 4 or 5 range. 1's and 6's are rare.
What are the Range of Values for the Common Sense Scoring Scale? - ANSWER50%
or less = weak; high risk
58% = average
67% = above average; low risk
72% or higher = best-in-class
What is the definition of Value Acceleration? - ANSWERA proven process that focuses
on value growth and aligning business, personal and financial goals.
As it relates to retirement planning, what are the three main business owner issues? -
ANSWER1) How much do I need?
2) What rate of return (ROR) do I need on my investments?
3) Addresses stock market volatility
