CEPA Study Guide – Questions & Correct Solutions An exit plan asks and answers all the business, personal, ____, _____, and _____ questions involved in transitioning a privately owned business. Right Ans - Financial, legal, tax Exit Plan includes contingencies for illness, ____, _____, and _____. Right Ans - Burnout, divorce, death Exit Planning's purpose is to ______ the _____ of the business at the time of _____, minimize _____, and ensure the owner is able to accomplish of their personal and _______ goals in the process Right Ans - Maximize, value. Exit. Taxes.Financial.Exit Planning combines the ____, _____, _____, and _____ into a clear, simple strategy to build a business that is transferable through strong human, structural, customer, and social capital. Right Ans - Plan, concept, effort, and process.Exit Planning combines the Plan, concept, effort, and process. into a clear, simple strategy to build a business that is transferable through strong _____, _____, _______, and ______ capital. Right Ans - human, structural, customer, and social capital.Exit Planning is simply _____ _____ ______. Right Ans - Good Business Strategy Blue Ocean Right Ans - An industry not in existence today One year after selling _____ out of _____ owner "profoundly regretted" selling Right Ans - Three out of four ____% to ____% of business put on the market don't sell Right Ans - 70% to 80% Only ___% of family owned businesses survive into the second generation Right Ans - 30% ___% of business owners are not familiar with all exit options Right Ans -
66% 1 / 2
___% of business owners have no formal exit plan Right Ans - 78% ___% of business owners have no written transition plan Right Ans - 83% ___% of business owners have done no planning at all Right Ans - 49% ___% of business owners have no formal life plan after the sell Right Ans - 93% Value Innovation Right Ans - Is a new way of thinking about and executing strategy that results in a blue ocean and a break from the competition.Leap In Value Right Ans - Focus on making competition irrelevant by creating a ____ in _____.Baby boomers own ____% of the private businesses in the US Right Ans - 63% ___% of boomers plan to transition their business over the next 10 years.Right Ans - 76% The boomer transfer represents ____ million businesses and over $___ trillion of wealth Right Ans - 4.5. $10 Trillion
Mission of CEPA and EPI is to: Right Ans - Create awareness
Foster team play Adopt a process
Challenge to overcome: Boomers don't want to____. Right Ans - Exit
Challenge overcome: ___% of exits are caused by the five ___'s (____, ____, ____, ____, _____). Right Ans - D's - Death, disability, divorce, Distress, Disagreement) Owners are leaving money on the table because they are focused on _____ generation, not _____ value. Right Ans - Income generation. Enterprise value.
- / 2