1|Pag e
EPI EXAM-PREP GUIDE FOR CEPA EXAM|| 2024-
2025 QUESTIONS AND 100% CORRECT ANSWERS
ALREADY GRADED A+|| LATEST AND COMPLETE
UPDATE 2024-2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!!
What percentage of privately held businesses offered for sale each year do NOT
sell? - ANSWER: 80%
Business Survival Rate across generations? - ANSWER: Second gen = 30%
Third gen = 12%
Fourth gen = 3%
What percentage of owners have done no exit planning at all? - ANSWER: 49%
What are the five D's? - ANSWER: Death, Divorce, Distress, Disabled,
Disagreement
Advisors of the Future change owner/peer paradigms about what exit planning
actually is by - ANSWER: a. Exit planning is business strategy
b. Value is all about transferability
c. They work from a common framework that focuses on value growth and
aligning business, personal, and
financial goals
Exit planning ecosystem defined - ANSWER: A system, or group of
interconnected disciplines, formed by the interaction of a collaborative, like-
,2|Pag e
minded community of professional advisors, with a common goal to grow,
preserve, and transition wealth for business owners
Advisor of the future - ANSWER: a. Focuses on value creation.
b. Acts as the quarterback of the team.
c. Oversees a master plan.
d. Helps other advisors get engaged and resolves issues
Business owners leave money on the table because they do not focus on what type
of value? - ANSWER: Enterprise value
What is exit planning? (Richard Jackim) - ANSWER: a. An exit plan asks and
answers all the business, personal, financial, legal, and tax questions involved in
transitioning a privately-owned business
b. It includes contingencies for illness, burnout, divorce, and death
c. Its purpose is to maximize the value of the business at the time of exit, minimize
taxes, and ensure the
owner is able to accomplish all his or her personal and financial goals in the
process
Chris Snider definition of exit planning? - ANSWER: 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
Blue oceans and value innovation - ANSWER: . A Blue Ocean denotes an
industry not in existence today
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b. Value innovation is a new way of thinking about and executing strategy that
results in a blue ocean and a
break from the competition
c. Focus is on making competition irrelevant by creating a leap in value
Historical data on exits - ANSWER: A. One year after selling, three out of four
business owners surveyed "profoundly regretted" the decision
b. 70%-80% of businesses put on the market don't sell
c. Only 30% of all family-owned businesses survive into the second generation
Stats from EPI ownership readiness survey - ANSWER: a. 66% are not familiar
with all exit options
b. 78% have no formal transition advisory team
c. 83% have no written transition plan
d. 49% have done no planning at all e. 93% have no formal life after plan
Opportunities in exit planning - ANSWER: a. Baby boomers own 63% of the
private businesses in the US
b. 76% of them plan to transition over the next 10 years
c. Represents a transfer of approximately 4.5 million businesses and over $10
trillion of wealth
Challenges to exit planning - ANSWER: a. Boomers don't want to exit
b. 50% of exits are caused by one of the five Ds (Death, Disability, Divorce,
Distress, Disagreement)
c. Owners are leaving money on the table because they are focused on income
generation, not enterprise
value
EPI EXAM-PREP GUIDE FOR CEPA EXAM|| 2024-
2025 QUESTIONS AND 100% CORRECT ANSWERS
ALREADY GRADED A+|| LATEST AND COMPLETE
UPDATE 2024-2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!!
What percentage of privately held businesses offered for sale each year do NOT
sell? - ANSWER: 80%
Business Survival Rate across generations? - ANSWER: Second gen = 30%
Third gen = 12%
Fourth gen = 3%
What percentage of owners have done no exit planning at all? - ANSWER: 49%
What are the five D's? - ANSWER: Death, Divorce, Distress, Disabled,
Disagreement
Advisors of the Future change owner/peer paradigms about what exit planning
actually is by - ANSWER: a. Exit planning is business strategy
b. Value is all about transferability
c. They work from a common framework that focuses on value growth and
aligning business, personal, and
financial goals
Exit planning ecosystem defined - ANSWER: A system, or group of
interconnected disciplines, formed by the interaction of a collaborative, like-
,2|Pag e
minded community of professional advisors, with a common goal to grow,
preserve, and transition wealth for business owners
Advisor of the future - ANSWER: a. Focuses on value creation.
b. Acts as the quarterback of the team.
c. Oversees a master plan.
d. Helps other advisors get engaged and resolves issues
Business owners leave money on the table because they do not focus on what type
of value? - ANSWER: Enterprise value
What is exit planning? (Richard Jackim) - ANSWER: a. An exit plan asks and
answers all the business, personal, financial, legal, and tax questions involved in
transitioning a privately-owned business
b. It includes contingencies for illness, burnout, divorce, and death
c. Its purpose is to maximize the value of the business at the time of exit, minimize
taxes, and ensure the
owner is able to accomplish all his or her personal and financial goals in the
process
Chris Snider definition of exit planning? - ANSWER: 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
Blue oceans and value innovation - ANSWER: . A Blue Ocean denotes an
industry not in existence today
, 3|Pag e
b. Value innovation is a new way of thinking about and executing strategy that
results in a blue ocean and a
break from the competition
c. Focus is on making competition irrelevant by creating a leap in value
Historical data on exits - ANSWER: A. One year after selling, three out of four
business owners surveyed "profoundly regretted" the decision
b. 70%-80% of businesses put on the market don't sell
c. Only 30% of all family-owned businesses survive into the second generation
Stats from EPI ownership readiness survey - ANSWER: a. 66% are not familiar
with all exit options
b. 78% have no formal transition advisory team
c. 83% have no written transition plan
d. 49% have done no planning at all e. 93% have no formal life after plan
Opportunities in exit planning - ANSWER: a. Baby boomers own 63% of the
private businesses in the US
b. 76% of them plan to transition over the next 10 years
c. Represents a transfer of approximately 4.5 million businesses and over $10
trillion of wealth
Challenges to exit planning - ANSWER: a. Boomers don't want to exit
b. 50% of exits are caused by one of the five Ds (Death, Disability, Divorce,
Distress, Disagreement)
c. Owners are leaving money on the table because they are focused on income
generation, not enterprise
value
