East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Investor Presentation (June 2016)
25 slides from East West Bancorp's investor presentation, June 2016
Slide 1: Selling a Small Business and Succession Planning
Selling a Small Business and Succession Planning FOR A SMALL BUSINESS
Slide 2: Welcome
Welcome 1. Agenda 2. Ground Rules 3. Introductions SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 3: Objectives
Objectives • Change ownership of a business through selling, closing, or handing to a successor. • Establish an exit strategy for retirement including a succession plan, transfer of ownership, and taxes. SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 4: What Do You Know?
What Do You Know? What do you know or want to learn about selling a small business and succession planning? SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 5: Why Sell?
Why Sell? • Business or Professional reasons include • An advantageous job offer from another company • A promising offer to buy your business or business assets • Sales and profits are not enough to meet your needs • Market or industry changes SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 6: Why Sell?
Why Sell? • Some personal considerations include • Ready to retire • Burned out working for yourself • Personal issues such as health or family needs • Desire to go in a new direction SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 7: Discussion Point #1: Reasons for Selling the Business
Discussion Point #1: Reasons for Selling the Business What is the main reason for selling your business? SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 8: Steps to Selling a Business
Steps to Selling a Business SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 9: Determine If Business is Saleable
Determine If Business is Saleable • Strong profits • In an attractive industry • Potential buyers • Good assets • Quality inventory • Transfer to another person • Healthy balance sheet SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 10: Determine Your Price
Determine Your Price • Valuing the revenue stream • Net profit over time • Valuing the assets • Cash • Receivables • Inventory • Equipment • Real Estate SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 11: Prepare For Sale
Prepare For Sale • Resolve Problems • Accounts receivable can be collected • Prepare financial statements • Provide business plan • Secure relationships • Sell old inventory • Office equipment is in good order • How will you be compensated SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 12: Look for Prospective Buyers
Look for Prospective Buyers • Employees • Customers • Business owners • Competitors SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 13: Negotiating the Deal
Negotiating the Deal • Qualifying your buyer • Lump sum versus installments • Non-compete clauses • Management assistance • Down payment • Collateral SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 14: Discussion Point #2: Challenges of Selling the Business
Discussion Point #2: Challenges of Selling the Business What are some of the challenges of selling your business? SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 15: Closing a Business
Closing a Business Steps for closing a business • Follow instructions in founding documents • Sell business assets • Cancel permits, licenses, lease agreements • Comply with federal income tax laws • Resolve outstanding issues with customers, creditors, and suppliers • Maintain records • Get profess
Slide 16: Planning Succession
Planning Succession A plan for someone to either own or run your business after you retire SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 17: Discussion Point #3: Benefits of Selecting a Successor
Discussion Point #3: Benefits of Selecting a Successor What is the most important reason for selecting a successor? SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 18: Issues to Consider in Succession Planning
Issues to Consider in Succession Planning • Start early • Identify successors • Train successors • Plan for tax exposure • Get legal advice SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 19: Planning Retirement
Planning Retirement SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 20: Retirement Plan Benefits
Retirement Plan Benefits • Employer contributions are tax-deductible. • Assets in the plan grow tax-free. • Flexible plan options are available. • A retirement plan can attract and retain better employees, reducing new employee training costs. SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 21: Employee Benefits
Employee Benefits • Reduce current taxable income • Not taxed until distributed • Easy to make through payroll deductions • Compounding interest over time • Retirement assets can be carried from one employer to another • Opportunity to improve financial security in retirement SELLING A SMALL BUSINES
Slide 22: Retirement Plans
Retirement Plans • Common Retirement Plans • SEP • SIMPLE • 401K • Make regular contributions • Get professional advise SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 23: Top Three Key Points to Remember
Top Three Key Points to Remember • Plan for the possibility of selling and closing a business • Start making plans as soon as possible. • Create a retirement plan you and your employees SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 24: Conclusion
Conclusion • You learned about: • Reasons for selling and closing a business. • Steps for selling or closing a business • Steps for succession planning • Benefits and steps for creating a retirement plan. SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
Slide 25: Summary
Summary • What final questions do you have? • What have you learned? • How would you evaluate the training? SELLING A SMALL BUSINESS AND ‹#› SUCESSION PLANNING
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