CBB Study Guide 2026
Everything you need to pass the CBB exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CBB Exam Format at a Glance
📚 CBB Topics to Study (38)
✍️ Sample CBB Questions & Answers
1. When calculating Seller's Discretionary Earnings (SDE), which item should be ADDED BACK to net income?
Personal benefits like owner health insurance are discretionary expenses that a new owner might not incur, so they are added back to reflect true business earning power.
2. What is a 'data room' in the context of a business sale?
A data room—often virtual—provides qualified buyers controlled access to sensitive business documents during due diligence.
3. A prospective buyer asks a broker for references from past clients. What should the broker consider before providing them?
Past client contact information is confidential and should only be shared as a reference with the prior client's explicit consent.
4. During due diligence, a buyer discovers the target business has three customer concentration risk where one client represents 45% of revenue. The broker should:
An earnout tied to key customer retention bridges the value gap by giving the buyer protection while allowing the seller to achieve full price if the customer stays.
5. Which financial statement provides the most direct evidence of a business's ability to service debt after an acquisition?
The statement of cash flows shows actual cash generated from operations, which determines debt repayment capacity.
6. What is the purpose of a 'training and consultation agreement' often included in a business sale?
This agreement defines the scope, duration, and compensation (if any) for the seller's support of the new owner during the transition period.