Epi Exam Prep Guide for Cepa Exam
Questions with Correct Answers 2025
WhatFpercentage of privately held businessesFoffered for sale each year do NOT sell? CORRECT
ANSWER-80%
Business Survival Rate across generations? CORRECT ANSWER-Second gen = 30% Third
gen = 12%
Fourth gen = 3%
What percentage of ownersFhave done no exit planningFat all? CORRECT ANSWER-49%
What are the five D's? CORRECT ANSWER-Death, Divorce, Distress, Disabled, Disagreement
Advisors of the Future change owner/peer paradigms about what exit planning actually is by -
CORRECT ANSWER -a. Exit planning is business strategy
b. Value is all about transferability
c. They work from a common frameworkFthat focuses on value growth and aligning business, personal, an
d
financial goals
Exit planning ecosystem defined CORRECT ANSWER-
A system, or group of interconnected disciplines, formed by the interaction of a collaborative, like-
minded community of professional advisors, with a common goal to grow, preserve, and transition wealt
h for business owners
Advisor of the future CORRECT 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?
CORRECT ANSWER-Enterprise value
What is exit planning? (Richard Jackim) CORRECT ANSWER-
a. An exit plan asks and answers all the business, personal, financial, legal, and tax questions involved in
transitioningFa privately-owned business
b. It includes contingencies for illness, burnout, divorce, and death
c. Its purpose is to maximize the value of the businessFat 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? CORRECT ANSWER-
Exit Planning combines the plan, concept, effort and process into a clear, simple strategy to build a busine
ss that is transferable through strong human, structural, customer, and social capital. The future of you, y
our family, and your business are addressed by exit planningFthrough creating value today
Blue oceans and value innovation CORRECT ANSWER-
. AFBlue Ocean denotes an industry not in existence today
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 CORRECT 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 CORRECT 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 CORRECT 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 exitFplanning CORRECT 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
Value acceleration is based on what management philosophy CORRECT ANSWER-Master Planning
Three gates of Value Acceleration Methodology CORRECT ANSWER-Discover - Prepare - Decide
Benefits of focusingFon value? CORRECT ANSWER-Predictable results
Employees start thinking like owners
Mitigates risk
When is Triggering event completed? CORRECT ANSWER-Discover gate
Full value acceleration usually takes? CORRECT ANSWER-3-5 YR
54321 CORRECT ANSWER-a. Five Stages
b. Four Capitals
c. Three Gates
d. Two Paths
e. One Goal
Questions with Correct Answers 2025
WhatFpercentage of privately held businessesFoffered for sale each year do NOT sell? CORRECT
ANSWER-80%
Business Survival Rate across generations? CORRECT ANSWER-Second gen = 30% Third
gen = 12%
Fourth gen = 3%
What percentage of ownersFhave done no exit planningFat all? CORRECT ANSWER-49%
What are the five D's? CORRECT ANSWER-Death, Divorce, Distress, Disabled, Disagreement
Advisors of the Future change owner/peer paradigms about what exit planning actually is by -
CORRECT ANSWER -a. Exit planning is business strategy
b. Value is all about transferability
c. They work from a common frameworkFthat focuses on value growth and aligning business, personal, an
d
financial goals
Exit planning ecosystem defined CORRECT ANSWER-
A system, or group of interconnected disciplines, formed by the interaction of a collaborative, like-
minded community of professional advisors, with a common goal to grow, preserve, and transition wealt
h for business owners
Advisor of the future CORRECT 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?
CORRECT ANSWER-Enterprise value
What is exit planning? (Richard Jackim) CORRECT ANSWER-
a. An exit plan asks and answers all the business, personal, financial, legal, and tax questions involved in
transitioningFa privately-owned business
b. It includes contingencies for illness, burnout, divorce, and death
c. Its purpose is to maximize the value of the businessFat 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? CORRECT ANSWER-
Exit Planning combines the plan, concept, effort and process into a clear, simple strategy to build a busine
ss that is transferable through strong human, structural, customer, and social capital. The future of you, y
our family, and your business are addressed by exit planningFthrough creating value today
Blue oceans and value innovation CORRECT ANSWER-
. AFBlue Ocean denotes an industry not in existence today
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 CORRECT 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 CORRECT 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 CORRECT 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 exitFplanning CORRECT 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
Value acceleration is based on what management philosophy CORRECT ANSWER-Master Planning
Three gates of Value Acceleration Methodology CORRECT ANSWER-Discover - Prepare - Decide
Benefits of focusingFon value? CORRECT ANSWER-Predictable results
Employees start thinking like owners
Mitigates risk
When is Triggering event completed? CORRECT ANSWER-Discover gate
Full value acceleration usually takes? CORRECT ANSWER-3-5 YR
54321 CORRECT ANSWER-a. Five Stages
b. Four Capitals
c. Three Gates
d. Two Paths
e. One Goal
