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CEPA: The Need For Exit Planning: Questions & Answers
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CEPA: The Need For Exit Planning: Questions &Answers
What percentage of privately held businesses that are offered for sale each
year ultimately do not send ? Right Ans - 80%
According to the Family Firm Institute, what percentage of family transitions
survive into the second generation ? Right Ans - 30%
What are the 5 d's ? Right Ans - Divorce, Death, Distress
Business owners are leaving dollars on the table by not focusing on what?
Right Ans - Enterprise value
The advisor of the future needs to get owners and advisors to make several
paradigm shifts for exit planning and value acceleration to work to the benefit
of owners and their families. What is the first paradigm shift that needs to be
made? Right Ans - Exit planning is good business strategy
What is exit planning planning according to Richard Jackim Right Ans - Exit
planning asks and answers all the business, personal financial, legal, and tax
questions involved in transitioning a privately-owned business. It includes
contingencies for illness, burnout, divorce and death. The purpose is to
maximize value of the business at the time of exit, minimize taxes, and ensure
the owner is able to accomplish all his personal and financial goals in the
process
What is exit planning according to Chris Snider? Right Ans - Exit planning
combines the plan, concept, effort and process into clear, simple strategy to
build a business that is transferable through strong human, structural,
customer and social capital. The future of you, your family and your business
are addressed by exit planning through creating value today.
True/False Exit Planning is Simply good business strategy. Right Ans -
True.
After a year, of selling the business how many business owners regret the
decision? Right Ans - 3 out of 4
, How many businesses in the market do not sell? Right Ans - 70-80%
How many family owned businesses survive into the 2nd generation? Right
Ans - 30%
According to 2013 EPi State of owners Readiness Survey, how many owners
are not familiar to their exit options? Right Ans - 66% are not familiar with
exit options
According to the EPI State of Owner Readiness Survet, how many owners do
not have a formal advisory team? Right Ans - 78% have no formal
transition advisory teams
According to the EPI State of Owner Readiness Survey, how many owners
have no written transition plan Right Ans - 83%
According to EPI State of Owner Readiness Survey, how many owners have
done no planning at all Right Ans - 49%
According to EPI State of Owner Readiness Survey, how many owner have no
formal plan? Right Ans - 93%
What amount represents the value of wealth that transfers of approximately
4.5 million businesses? Right Ans - 10 trillion dollars
How many baby boomers plan to transition over the next 10 years? Right
Ans - 76%
The mission of EPI and CEPAS to change the outcome. CEPAS do this by:
Right Ans - Creating Awareness
Fostering Team-play
Adopting a process
What challenges do owners have to overcome? Right Ans - -Baby boomers
do not want to exit
-50% of exits are due to one of the 5 D's (death, disability, divorce, distress,
disagreement)
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