K
C
LO
CEPA (CERTIFIED EXIT
YC
PLANNING ADVISOR) EXAM
D
PREP 2022 STUDY GUIDE
U
QUESTIONS WITH CORRECT
ST
ANSWERS ALL VERIFIED BY
AN EXPERT A+ GRADED
(LATEST UPDATE)
,What is the calculation for Recast EBITDA?
Addbacks + EBITDA = Recast EBITDA
What does EBITDA stand for?
Earnings Before Interest, Taxes, Depreciation, & Amortization
K
What are the three gaps within the Value Acceleration Methodology?
Wealth Gap, Value Gap, & Profit Gap
C
What are the Five Stages of Value Maturity in order?
LO
Identify, Protect, Build, Harvest, Manage
In the Five Stages of Value Maturity, what occurs in the "Identify" stage?
Identify and asses the business value. Understand how ready and attractive the business is.
YC
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?
Protect Value and Build Value
D
In the Five Stages of Value Maturity, what occurs in the "Protect" stage?
Protect what you have because "build" means more risk. Make sure the right systems are in
U
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.
ST
In the Five Stages of Value Maturity, what occurs in the "Build" stage?
This 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?
This is when the owner exits the company and harvests its value
,Simply put, what is exit planning?
Good Business strategy
What are the Four intangible Capitals or "Four C's"?
Human Capital, Structural Capital, Customer Capital, & Social Capital
How much of a business' value (in percentage) is trapped inside the four intangible capitals or
K
"Four C's"?
80%
C
What is Human Capital?
It's the people in the business. Employee tenure, experience / talent level, management team
LO
succession plan, management team strength, etc.
What is Structural Capital?
The most robust of the "Four C's", this includes everything from the real estate, intellectual
YC
property, equipment, process & documentation, IT, systems (including financial & accounting
systems), etc.
What is Customer Captial?
Depth of customer relationships, customer entanglement, customer concentration /
D
diversification, contracts, etc.
U
What is Social Capital?
Culture within & outside the company. How people relate outside of the company. This is
developed over time after all other intangible capitals are established/improved.
ST
What are the three gates (in order) of the Value Acceleration Methodology?
Discover, Prepare, & Decide
What are the Three Legs of the Stool?
Business, Financial, & Personal
What is the Wealth Gap?
, Understanding 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?
The difference between the owner's current business value and the Best-In-Class business
value.
K
What is the Profit Gap?
The difference between the owner's current business profit (or recasted EBITDA) and the
Best-In-Class business profit (or recasted EBITDA)
C
The two concurrent paths are in which gate within the Value Acceleration Methodology?
LO
The Prepare Gate
What are the two concurrent paths within the Prepare Gate?
The risk mitigation (De-risk) / business improvement path
YC
AND
The personal/financial ("Vision") path
D
What is the ONE goal of the Value Acceleration Methodology?
To drive value across all three legs of the stool (business, financial & personal)
U
How much of an owner's wealth (in percentage) is locked in their business?
80-90%
ST
What's the difference between a Lifestyle Business and Value Creator Business?
Lifestyle 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?
personal planning
C
LO
CEPA (CERTIFIED EXIT
YC
PLANNING ADVISOR) EXAM
D
PREP 2022 STUDY GUIDE
U
QUESTIONS WITH CORRECT
ST
ANSWERS ALL VERIFIED BY
AN EXPERT A+ GRADED
(LATEST UPDATE)
,What is the calculation for Recast EBITDA?
Addbacks + EBITDA = Recast EBITDA
What does EBITDA stand for?
Earnings Before Interest, Taxes, Depreciation, & Amortization
K
What are the three gaps within the Value Acceleration Methodology?
Wealth Gap, Value Gap, & Profit Gap
C
What are the Five Stages of Value Maturity in order?
LO
Identify, Protect, Build, Harvest, Manage
In the Five Stages of Value Maturity, what occurs in the "Identify" stage?
Identify and asses the business value. Understand how ready and attractive the business is.
YC
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?
Protect Value and Build Value
D
In the Five Stages of Value Maturity, what occurs in the "Protect" stage?
Protect what you have because "build" means more risk. Make sure the right systems are in
U
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.
ST
In the Five Stages of Value Maturity, what occurs in the "Build" stage?
This 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?
This is when the owner exits the company and harvests its value
,Simply put, what is exit planning?
Good Business strategy
What are the Four intangible Capitals or "Four C's"?
Human Capital, Structural Capital, Customer Capital, & Social Capital
How much of a business' value (in percentage) is trapped inside the four intangible capitals or
K
"Four C's"?
80%
C
What is Human Capital?
It's the people in the business. Employee tenure, experience / talent level, management team
LO
succession plan, management team strength, etc.
What is Structural Capital?
The most robust of the "Four C's", this includes everything from the real estate, intellectual
YC
property, equipment, process & documentation, IT, systems (including financial & accounting
systems), etc.
What is Customer Captial?
Depth of customer relationships, customer entanglement, customer concentration /
D
diversification, contracts, etc.
U
What is Social Capital?
Culture within & outside the company. How people relate outside of the company. This is
developed over time after all other intangible capitals are established/improved.
ST
What are the three gates (in order) of the Value Acceleration Methodology?
Discover, Prepare, & Decide
What are the Three Legs of the Stool?
Business, Financial, & Personal
What is the Wealth Gap?
, Understanding 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?
The difference between the owner's current business value and the Best-In-Class business
value.
K
What is the Profit Gap?
The difference between the owner's current business profit (or recasted EBITDA) and the
Best-In-Class business profit (or recasted EBITDA)
C
The two concurrent paths are in which gate within the Value Acceleration Methodology?
LO
The Prepare Gate
What are the two concurrent paths within the Prepare Gate?
The risk mitigation (De-risk) / business improvement path
YC
AND
The personal/financial ("Vision") path
D
What is the ONE goal of the Value Acceleration Methodology?
To drive value across all three legs of the stool (business, financial & personal)
U
How much of an owner's wealth (in percentage) is locked in their business?
80-90%
ST
What's the difference between a Lifestyle Business and Value Creator Business?
Lifestyle 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?
personal planning
