CEPA - Exit Options and M&A Latest Update - Questions and 100% Verified Correct Answers Guaranteed A+
- CORRECT ANSWER:
11 actions to grow value, unlock wealth and create value - CORRECT ANSWER: 1)
shift paradigm 2) Align 3 legs 3) Make bus value your #1 goal 4) Focus on the present 5) manage using 5 stages of the value maturity index 6) Create intangible asset transferability 7) Adopt value acceleration as your core management process 8) relentlessly execute 9)measure frequently; keep score 10) involve & build your teams 11) invest in your success
2 Business owner styles - CORRECT ANSWER: 1) Lifestyle
2) Value Creator
3 legs of the stool (Master Planning) - CORRECT ANSWER: Business
Financial Personal (most neglected)
4 components of relentless execution - CORRECT ANSWER: Vision (compelling
Vision)
Alignment THE PLAN (align resources to vision- what we will do and what we will NOT do)
Accountability PLAN EXECUTION (process issue and not usually people- ask why?)
Rhythm RESULT (everything else leads to rhythm or flow)
5 Stages of Value Maturity - CORRECT ANSWER: 1) identify
2) Protect 3) Build 4) Harvest 5) Manage 1 / 2
54321 - CORRECT ANSWER: 5 Stages- identify, protect, build, harvest, manage
- Capitals - Human, social, customer, structural
- Gates - Discover, Prepare, Decide
- Paths - Sell or stay
- Goals - Right buyer for the right price
A "deliverable" includes which of the following characteristics? - CORRECT ANSWER: A report, meeting, workshop, or event representing the conclusion of an assignment, step, stage, task, or action What the client is paying for Recommendation regarding the next set of actions that the client should take
Adjusted Ebitda - CORRECT ANSWER: Add backs + Net Operating Profit
Advantages of ESOP - CORRECT ANSWER: Continuity, Pre-tax, Gains deferral, EE
Benef, EE buy-in
Advantages of Strategic Buyer - CORRECT ANSWER: Usually Pay premium for
control, quickest way to exit
Advantages to 3rd Party Sale - CORRECT ANSWER: Highest Price, More Cash, Walk
Away Faster, Bus Refresh& new Energy
Advantages to Recapitalization - CORRECT ANSWER: Partial Exit Possible, Owner
diversification, Provides Capital for Growth, 2nd bite of Apple
Advantages to Sale to 3rd Party - CORRECT ANSWER: Highest Price, Cash up front,
deal terms, Bus Refresh (growth & new energy)
Amount of value in intangible assets - CORRECT ANSWER: 80%
attractiveness - CORRECT ANSWER: How an outsider would view your business
Biggest disadvantages of financial buyers - CORRECT ANSWER: Complex and highly
leveraged
Biggest obstacle to getting things done and to success - CORRECT ANSWER: poor
planning and execution
Business Readiness - CORRECT ANSWER: Want Owner Independence
Customer Concentration Lack of structural Capital (documentation of processes/equipment/logistics the secret sauce) Skeletons in the closet (undisclosed law suit)
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