CEPA (Certified Exit
Planning Advisor) Exam
Prep 2024 Questions With
100% Correct Answers!!!
1.What is the calculation for Recasted EBITDA?: Addbacks + EBITDA = Recast- ed EBITDA
2.What does EBITDA stand for?: Earnings Before Interest, Taxes, Depreciation, & Amortization
3.What are the three gaps within the Value Acceleration Methodology?: Wealth Gap, Value Gap, & Profit Gap .What are the Five Stages of Value Maturity in order?: Identify, Protect, Build, Harvest, Manage
5.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. What is the current value? What is it's potential value? What are the gaps?
6.What are considered the "Value Creation" stages within the Five Stages of Value Maturity?: Protect Value and Build Value
7.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 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.
8.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.
9.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
10.Simply put, what is exit planning?: Good Business strategy
11.What are the Four intangible Capitals or "Four C's"?: Human Capital, Struc- tural Capital, Customer Capital, & Social Capital
12.How much of a business' value (in percentage) is trapped inside the four intangible capitals or "Four C's"?: 80%
13.What is Human Capital?: It's the people in the business. Employee tenure, experience / talent level, management team succession plan, management team strength, etc.
14.What is Structural Capital?: The most robust of the "Four C's", this includes
everything from the real estate, intellectual property, equipment, process & docu-
mentation, IT, systems (including financial & accounting systems), etc.
15.What is Customer Captial?: Depth of customer relationships, customer entan-
glement, customer concentration / diversification, contracts, etc. .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.
17.What are the three gates (in order) of the Value Acceleration Methodolo- gy?: Discover, Prepare, & Decide
18.What are the Three Legs of the Stool?: Business, Financial, & Personal
19.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.
20.What is the Value Gap?: The difference between the owner's current business value and the Best-In-Class business value.
21.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)
22.The two concurrent paths are in which gate within the Value Acceleration Methodology?: The Prepare Gate
23.What are the two concurrent paths within the Prepare Gate?: The risk mitigation (De-risk) / business improvement path
Planning Advisor) Exam
Prep 2024 Questions With
100% Correct Answers!!!
1.What is the calculation for Recasted EBITDA?: Addbacks + EBITDA = Recast- ed EBITDA
2.What does EBITDA stand for?: Earnings Before Interest, Taxes, Depreciation, & Amortization
3.What are the three gaps within the Value Acceleration Methodology?: Wealth Gap, Value Gap, & Profit Gap .What are the Five Stages of Value Maturity in order?: Identify, Protect, Build, Harvest, Manage
5.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. What is the current value? What is it's potential value? What are the gaps?
6.What are considered the "Value Creation" stages within the Five Stages of Value Maturity?: Protect Value and Build Value
7.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 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.
8.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.
9.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
10.Simply put, what is exit planning?: Good Business strategy
11.What are the Four intangible Capitals or "Four C's"?: Human Capital, Struc- tural Capital, Customer Capital, & Social Capital
12.How much of a business' value (in percentage) is trapped inside the four intangible capitals or "Four C's"?: 80%
13.What is Human Capital?: It's the people in the business. Employee tenure, experience / talent level, management team succession plan, management team strength, etc.
14.What is Structural Capital?: The most robust of the "Four C's", this includes
everything from the real estate, intellectual property, equipment, process & docu-
mentation, IT, systems (including financial & accounting systems), etc.
15.What is Customer Captial?: Depth of customer relationships, customer entan-
glement, customer concentration / diversification, contracts, etc. .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.
17.What are the three gates (in order) of the Value Acceleration Methodolo- gy?: Discover, Prepare, & Decide
18.What are the Three Legs of the Stool?: Business, Financial, & Personal
19.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.
20.What is the Value Gap?: The difference between the owner's current business value and the Best-In-Class business value.
21.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)
22.The two concurrent paths are in which gate within the Value Acceleration Methodology?: The Prepare Gate
23.What are the two concurrent paths within the Prepare Gate?: The risk mitigation (De-risk) / business improvement path
