CEPA - Value Acceleration Methodology Latest Update 2024 -2025 Actual Exam Questions and 100% Verified Correct Answers Guaranteed A+ 805 of a company's value usually rests within where? - CORRECT ANSWER: Intangible assets vs tangible. 95% of M& A advisors indicated this as the number one reason business don't sell. - CORRECT ANSWER: owners perception of the business value versus its real value. Business Attractiveness Score: what is average? Red Flag? Premium? - CORRECT ANSWER: 58% - Average Below 50% - Red Flag 72% and above - Premium Definition of Value Gap - CORRECT ANSWER: the value gap is the quantified dollar value of the difference between your present value and the value of similar best -
in-class businesses in your industry Exit Readiness Score - CORRECT ANSWER: Same process but determines how ready you are personally, financially and business wise to exit. Final Step in Discover Gate? - CORRECT ANSWER: Prioritized Action Plan is created P Personal / Financial actions P Business actions How do you correlate your readiness scores to your range of value? - CORRECT ANSWER: if you scored poorly, it is likely that your financial performance as benchmarked against others in your industry is poor as well. Compare your EBITDA as % of sales to the industry. How do you determine your company's value gap? - CORRECT ANSWER: Multiply your the BIC recasted EBITDA (using the BIC EBITDA as % of sales against your own TTM) against the BIC multiple. That will show you BIC Value... Then subtract your current value. You have to assign your company a multiple based on the readiness score! How do you get Recasted EBITDA? - CORRECT ANSWER: you adjust any number on the income statement that does not reflect a true picture of the cash flows of the business. If your value using EBITDA is less than your value using sales, what does that tell you? And how can you double -check this? - CORRECT ANSWER: indicate that you are underperforming financially compared to similar companies in your industry. Double check by calculating industry average EBITDA as % of sales and If you multiply these percentages by your TTM sales, you produce a theoretical average and best-in-class recasted EBITDA benchmark Master planning - three key legs to a successful transition? - CORRECT ANSWER: Personal plan, financial plan and business plan maximizing the value of the business, ensuring you are personally and financially prepared to maximize net proceeds, and ensuring you have a plan for what you are going to do next. Post triggering event you should immediately complete two workshops... - CORRECT ANSWER: a Personal Envisioning Workshop and a Business Envisioning Workshop. This exercise will enable you to eventually connect your vision to your 90 -Day prioritized actions, which are called Big Rocks. Profit Gap? - CORRECT ANSWER: The difference in cash flow your are producing vs BIC. Calculated by taking BIC EBITDA as % of Sales and multiplying that by your TTM sales. Subtract BIC from your number = Profit Gap Six weeks to a better business. Describe the 6 workshops. - CORRECT ANSWER: Workshop 1 — Education Deliverable: Team Educated on the Value Acceleration Methodology Workshop 2 — Strategic Framework Focus on next three - to five -year vision Deliverable: Three - to Five -Year Goals and Priorities Workshop 2 — Strategic Framework Focus on next three - to five -year vision Deliverable: Three - to Five -Year Goals and Priorities Workshop 4 — Alignment Deliverable: Opportunity Assessment
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