CEPA - EXIT OPTIONS ANALYSIS QUESTIONS
WITH CORRECT ANSWERS 2025-2026
Based on the 2013 EPI State of Owner Readiness Survey, how many business owners were not familiar wi
th all their transition options? - CORRECT ANSWER -Nearly 2/3rds
What is a pro for an intergenerational transfer? -FCORRECT ANSWER -
a) Business legacy preservation b) Planned c) Lower cost
Which of the following is not an inside exit option? - CORRECT ANSWER -Recapitalization
WhatFare the two general categories for private ownership exit options? - CORRECT ANSWER -
Inside and Outside
. A business owner you are advising on exit optionsFdoes not have a family member or children to transfer
the business to. She would like the exit option thatFwill get her the highest price for the business, more c
ash up front, and will allow her to walk away faster. What option do you recommend? -
CORRECT ANSWER -Third Party Sale
Inside Sale options - CORRECT ANSWER -
i. Intergenerational transfer ii. Management buyout iii. Sale to existing partners iv. Sale to employees (ESO
P)
Outside Sale options - CORRECT ANSWER -
i. Sale to third party ii. Recapitalization iii. IPO iv. Orderly liquidation
When asked, "what best describes how you are planningFto transition?" Owner plans for transition, based
on 2013 SOOR: - CORRECT ANSWER -
i. 35.6% indicated they would transition via an internal exit option ii. 31.4% indicated they would transitio
n via an external option iii. 30.9% indicated they were not sure iv. 2% of the sample answered "other
Intergenerational transfer - CORRECT ANSWER -
. Transfer of business stock to direct heirs, usually children. 50% of business owners want to exercise this
option - in reality, only about 30% actually do
WITH CORRECT ANSWERS 2025-2026
Based on the 2013 EPI State of Owner Readiness Survey, how many business owners were not familiar wi
th all their transition options? - CORRECT ANSWER -Nearly 2/3rds
What is a pro for an intergenerational transfer? -FCORRECT ANSWER -
a) Business legacy preservation b) Planned c) Lower cost
Which of the following is not an inside exit option? - CORRECT ANSWER -Recapitalization
WhatFare the two general categories for private ownership exit options? - CORRECT ANSWER -
Inside and Outside
. A business owner you are advising on exit optionsFdoes not have a family member or children to transfer
the business to. She would like the exit option thatFwill get her the highest price for the business, more c
ash up front, and will allow her to walk away faster. What option do you recommend? -
CORRECT ANSWER -Third Party Sale
Inside Sale options - CORRECT ANSWER -
i. Intergenerational transfer ii. Management buyout iii. Sale to existing partners iv. Sale to employees (ESO
P)
Outside Sale options - CORRECT ANSWER -
i. Sale to third party ii. Recapitalization iii. IPO iv. Orderly liquidation
When asked, "what best describes how you are planningFto transition?" Owner plans for transition, based
on 2013 SOOR: - CORRECT ANSWER -
i. 35.6% indicated they would transition via an internal exit option ii. 31.4% indicated they would transitio
n via an external option iii. 30.9% indicated they were not sure iv. 2% of the sample answered "other
Intergenerational transfer - CORRECT ANSWER -
. Transfer of business stock to direct heirs, usually children. 50% of business owners want to exercise this
option - in reality, only about 30% actually do
