WHO WE SERVE

Our primary responsibility is to you, our Client. We are not part of a larger firm and our business model doesn’t rely on “selling products,” it’s based on providing sound advice and a high level of client service. Simply put, when you succeed, we succeed.

BUSINESS OWNERS

Situation: Like many business owners, John is now in his 60s, his wife is begging him to slow down and he has a son in the business that may or not be capable of managing the current 120 employees. Although John has always envisioned a family business transition, he came to us looking for options knowing that it was time to start planning.

Process: Canal Capital worked with a number of partners to determine the value of the business. Because the current market environment is so strong (low interest rates and heavy demand from Private Equity) it made sense to take the business to both private equity buyers and strategic buyers.

Because Canal was engaged before the sale, we were able to mitigate taxes on the eventual sale. We were also able to design a more effective estate plan, which had a major impact on the next generation.

Engagement: Canal Capital Management began by helping the couple draft a comprehensive Business Transition Plan, which contained the distinct steps to reach their goals. Because of our unique process, we were able to have a family meeting to outline the direction of the estate. We then worked directly with the client’s accountant and attorney to put the plan into action. Below are some of the specific details of the plan:

Facilitated family meetings where everyone could discuss their objectives. This helped to facilitate the eventual completion of the estate plan.

Reviewed existing ownership transition plans and suggested modifications that would augment retirement income while saving on estate taxes.

Analyzed past and projected spending and provided assurance john could maintain his living standard and travel for the rest of his life.

Evaluated the potential tax gain and suggested opportunities to reduce the overall income tax liability associated with the sale.

Because the estate was greater than $11 million, we engaged in pre-sale estate planning opportunities only available before a deal is completed.