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 began to question their overall investment strategy, the lack of transparency and the fees within the accounts, primarily held at a large bank-affiliated institution. The family built the majority of its wealth through starting, operating, and successfully exiting one business, and was in the initial stages of exploring the sale of a second business. As entrepreneurs, the family was looking for a different approach to their finances, that would be more progressive and collaborative.

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, (2) reduce estate tax exposure and (3) transfer future appreciation into the estates of the younger generations.

Investment opportunities were presented to each individual of the family for their understanding and input, instead of selecting the same investments across all accounts for all family members. Because of the sophisticated estate planning done during the sale of the first business, much of the family’s wealth was held in trust and sizeable insurance cash value. Trusts were reviewed and insurance policies were analyzed to create significant cash flow 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 for all financial matters relating to 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 life insurance policies, so we worked with insurance professionals to objectively review the policies and premiums. Solutions were presented to maintain the current benefits, 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 and due diligence of various outside investment opportunities that had been pitched to the family. Also, presented unique opportunities available to Canal. All in all, the family had more engagement and decision making around their own money than they had ever experienced.

Provided complete transparency over the new investment portfolio and access to a number of new opportunities.