CEPA (CERTIFIED EXIT PLANNING
ADVISOR)EXAM PREP EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
What is the definition of Exit Planning?
Exit 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?
The 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?
,1) 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?
50% 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?
A 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?
1) How much do I need?
2) What rate of return (ROR) do I need on my investments?
,3) Addresses stock market volatility
What are the main drivers of financial planning as it fits in
with exit planning?
- age at retirement
- spending in retirement
- current assets
- savings until retirement
What are the topics of typical estate planning
conversations?
- preserving the deceased spouse's coupon
- disability trustee planning
- probate avoidance
- creditor protection
- predator protection
- bloodline protection
How does a workshop differ from a meeting?
- Workshops are more collaborative; time-restrained
- people (you need decision makers)
- positive (more buy-in from participants)
"Readiness" for transition determines what?
Grow or Exit (which should be asked every 90 days)
What is the question owners must continue to ask
themselves in the Third Gate?
, Do I keep growing or do I want to sell?
What are the benefits of a Triggering Event?
1) Establishes, based on fact (not feeling), your present value
2) Predicts the probability of succeeding with growth and
transition strategies
3) Identifies your Profit Gap
4) Identifies your Value Gap
5) Identifies ACTIONS you can take to protect, build, and
harvest value
What is the definition of the following Standard of Value?
Investment Value
The value to a particular investor based on individual
investment requirements & expectations.
How is Discounted Cash Flow (DCF) predicted?
Discounted Cash Flow is predicted on a specific future look at
economic benefits.
What leg of the stool is most important?
All three legs of the stool are EQUALLY important.
What is the formula for Value Gap?
Best In Class Value - Current Value
The biggest obstacle to plans getting done is
________________________.
ADVISOR)EXAM PREP EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
What is the definition of Exit Planning?
Exit 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?
The 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?
,1) 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?
50% 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?
A 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?
1) How much do I need?
2) What rate of return (ROR) do I need on my investments?
,3) Addresses stock market volatility
What are the main drivers of financial planning as it fits in
with exit planning?
- age at retirement
- spending in retirement
- current assets
- savings until retirement
What are the topics of typical estate planning
conversations?
- preserving the deceased spouse's coupon
- disability trustee planning
- probate avoidance
- creditor protection
- predator protection
- bloodline protection
How does a workshop differ from a meeting?
- Workshops are more collaborative; time-restrained
- people (you need decision makers)
- positive (more buy-in from participants)
"Readiness" for transition determines what?
Grow or Exit (which should be asked every 90 days)
What is the question owners must continue to ask
themselves in the Third Gate?
, Do I keep growing or do I want to sell?
What are the benefits of a Triggering Event?
1) Establishes, based on fact (not feeling), your present value
2) Predicts the probability of succeeding with growth and
transition strategies
3) Identifies your Profit Gap
4) Identifies your Value Gap
5) Identifies ACTIONS you can take to protect, build, and
harvest value
What is the definition of the following Standard of Value?
Investment Value
The value to a particular investor based on individual
investment requirements & expectations.
How is Discounted Cash Flow (DCF) predicted?
Discounted Cash Flow is predicted on a specific future look at
economic benefits.
What leg of the stool is most important?
All three legs of the stool are EQUALLY important.
What is the formula for Value Gap?
Best In Class Value - Current Value
The biggest obstacle to plans getting done is
________________________.
