CEPA - EXIT OPTIONS ANALYSIS QUESTIONS
WITH CORRECT ANSWERS 2025
BasedFonFtheF2013FEPIFStateFofFOwnerFReadinessFSurvey,FhowFmanyFbusinessFownersFwereFnotFfamiliarFwi
thFallFtheirFtransitionFoptions?F-FCORRECTFANSWERF-NearlyF2/3rds
WhatFisFaFproFforFanFintergenerationalFtransfer?F-FCORRECTFANSWERF-
a)FBusinessFlegacyFpreservationFb)FPlannedFc)FLowerFcost
WhichFofFtheFfollowingFisFnotFanFinsideFexitFoption?F-FCORRECTFANSWERF-Recapitalization
WhatFareFtheFtwoFgeneralFcategoriesFforFprivateFownershipFexitFoptions?F-FCORRECTFANSWERF-
InsideFandFOutside
.FAFbusinessFownerFyouFareFadvisingFonFexitFoptionsFdoesFnotFhaveFaFfamilyFmemberForFchildrenFtoFtransfer
FtheFbusinessFto.FSheFwouldFlikeFtheFexitFoptionFthatFwillFgetFherFtheFhighestFpriceFforFtheFbusiness,FmoreFc
ashFupFfront,FandFwillFallowFherFtoFwalkFawayFfaster.FWhatFoptionFdoFyouFrecommend?F-
FCORRECTFANSWERF-ThirdFPartyFSale
InsideFSaleFoptionsF-FCORRECTFANSWERF-
i.FIntergenerationalFtransferFii.FManagementFbuyoutFiii.FSaleFtoFexistingFpartnersFiv.FSaleFtoFemployeesF(ESO
P)
OutsideFSaleFoptionsF-FCORRECTFANSWERF-
i.FSaleFtoFthirdFpartyFii.FRecapitalizationFiii.FIPOFiv.FOrderlyFliquidation
WhenFasked,F"whatFbestFdescribesFhowFyouFareFplanningFtoFtransition?"FOwnerFplansFforFtransition,Fbased
FonF2013FSOOR:F-FCORRECTFANSWERF-
i.F35.6%FindicatedFtheyFwouldFtransitionFviaFanFinternalFexitFoptionFii.F31.4%FindicatedFtheyFwouldFtransitio
nFviaFanFexternalFoptionFiii.F30.9%FindicatedFtheyFwereFnotFsureFiv.F2%FofFtheFsampleFansweredF"other
IntergenerationalFtransferF-FCORRECTFANSWERF-
.FTransferFofFbusinessFstockFtoFdirectFheirs,FusuallyFchildren.F50%FofFbusinessFownersFwantFtoFexerciseFthisF
optionF-FinFreality,FonlyFaboutF30%FactuallyFdo
WITH CORRECT ANSWERS 2025
BasedFonFtheF2013FEPIFStateFofFOwnerFReadinessFSurvey,FhowFmanyFbusinessFownersFwereFnotFfamiliarFwi
thFallFtheirFtransitionFoptions?F-FCORRECTFANSWERF-NearlyF2/3rds
WhatFisFaFproFforFanFintergenerationalFtransfer?F-FCORRECTFANSWERF-
a)FBusinessFlegacyFpreservationFb)FPlannedFc)FLowerFcost
WhichFofFtheFfollowingFisFnotFanFinsideFexitFoption?F-FCORRECTFANSWERF-Recapitalization
WhatFareFtheFtwoFgeneralFcategoriesFforFprivateFownershipFexitFoptions?F-FCORRECTFANSWERF-
InsideFandFOutside
.FAFbusinessFownerFyouFareFadvisingFonFexitFoptionsFdoesFnotFhaveFaFfamilyFmemberForFchildrenFtoFtransfer
FtheFbusinessFto.FSheFwouldFlikeFtheFexitFoptionFthatFwillFgetFherFtheFhighestFpriceFforFtheFbusiness,FmoreFc
ashFupFfront,FandFwillFallowFherFtoFwalkFawayFfaster.FWhatFoptionFdoFyouFrecommend?F-
FCORRECTFANSWERF-ThirdFPartyFSale
InsideFSaleFoptionsF-FCORRECTFANSWERF-
i.FIntergenerationalFtransferFii.FManagementFbuyoutFiii.FSaleFtoFexistingFpartnersFiv.FSaleFtoFemployeesF(ESO
P)
OutsideFSaleFoptionsF-FCORRECTFANSWERF-
i.FSaleFtoFthirdFpartyFii.FRecapitalizationFiii.FIPOFiv.FOrderlyFliquidation
WhenFasked,F"whatFbestFdescribesFhowFyouFareFplanningFtoFtransition?"FOwnerFplansFforFtransition,Fbased
FonF2013FSOOR:F-FCORRECTFANSWERF-
i.F35.6%FindicatedFtheyFwouldFtransitionFviaFanFinternalFexitFoptionFii.F31.4%FindicatedFtheyFwouldFtransitio
nFviaFanFexternalFoptionFiii.F30.9%FindicatedFtheyFwereFnotFsureFiv.F2%FofFtheFsampleFansweredF"other
IntergenerationalFtransferF-FCORRECTFANSWERF-
.FTransferFofFbusinessFstockFtoFdirectFheirs,FusuallyFchildren.F50%FofFbusinessFownersFwantFtoFexerciseFthisF
optionF-FinFreality,FonlyFaboutF30%FactuallyFdo