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.

FAMILIES

Situation:

Multiple generations of a successful family begun to question the lack of transparency over their investments and the fees within accounts, primarily held at a large bank-affiliated institution, as well as the overall strategy of their financial affairs. The family built the majority of their wealth through starting, operating, and successfully exiting one business, and was in the initial stages of exploring the sale of their second business. As entrepreneurs, they were looking for a different, more progressive and collaborative, approach to their finances.

Process:

Canal Capital’s planning process uncovered several interesting opportunities. Through a series of meetings and in working with the family’s accountant we were able to document a comprehensive family balance sheet. By doing so, we consolidated accounts and found opportunities to: (1) utilize exemptions to efficiently make gifts across generations and (2) reduce estate tax exposure, and transfer future appreciation into the estates of the younger generations.

Investment opportunities were presented to the family for their understanding and input, instead of selecting the same investments across all accounts for all family members. Through significant estate planning done during the sale of the first business, much of the family’s wealth was held in trust and sizeable cash value insurance. Trusts were reviewed and insurance policies renegotiated for significant savings to the family each year.

Because of our business consulting and accounting backgrounds, we were able to work with our clients to develop financial statements and marketing materials for the sale of the second business, resulting in attainment of the desired price. This avoided a significant expense to the family. Overall, engaging Canal Capital Management resulted in much more transparency, collaboration and cohesive decision making on financial matters for the family.

Engagement:

Held meetings with members of each generation to understand their individual goals, risk tolerance and objectives – which were different among members of the family.

Discovered that a significant percentage of annual cash flow was being used to service insurance policies, so we worked with insurance professionals to objectively review the policies and premiums. Solutions were presented to secure insurance death benefit while significantly cutting premiums.

Negotiated a favorable interest rate with our custodian to settle outstanding, and compounding, inter-family loans. Most importantly this ensures investment growth happens in the estates of the younger generations not currently exposed to estate taxes.

Prepared financial statements and other materials to market and sell the second family business to a strategic buyer.

Developed an Investment Policy Statement (IPS) for each family unit, which outlined the asset allocation, risk management, asset location and overall growth goals of the portfolio for each family.

Provided ongoing evaluation of various outside investment opportunities presented to the family, and presented unique opportunities available to Canal, for significantly more engagement by all family members in their own wealth management.

Provided greater transparency over and access to investments.