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.

WHO WE SERVE

FAMILIES

Situation:

Multiple generations of a successful family began to question their overall investment strategy and the lack of transparency and fees within the accounts primarily held at a large bank-affiliated institution. The family had 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 by working with the family’s accountant, we were able to develop a comprehensive family balance sheet. This led to consolidating accounts and opportunities to: (1) Utilize exemptions to efficiently make gifts across generations, (2) reduce estate tax exposure and (3) transfer future appreciation to the estates of the younger generations.

Investment opportunities were clearly presented to each individual family member and their input solicited, instead of selecting the same investments across all accounts for all family members. Because of the sophisticated estate planning that accompanied the sale of the first business, much of the family’s wealth was held in trust and sizeable insurance cash values. 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, Canal Capital was able to work with our clients to develop financial statements and marketing materials for the sale of the second business resulting in a sale at the desired price. A significant expense to the family was avoided. 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 Canal Capital worked with insurance professionals to objectively review the policies and premiums. Solutions were found which maintained current benefits, while significantly cutting premiums.

Negotiated a favorable interest rate with our custodian to settle outstanding, and compounding, inter-family loans. As a result, investment growth will happen in the estates of 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 member, 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, while presenting unique opportunities available to Canal Capital. All in all, the family had more engagement and decision-making control over their own money than they had ever experienced.

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

Case studies presented are based on actual clients, however, some of the information may have been changed or altered . These studies are provided for educational purposes only. Similar, or even positive results, cannot be guaranteed. Each client has their own unique set of circumstances so products and strategies may not by suitable for all people. Please consult with a qualified professional before implementing any strategy discussed herein. No portion of these case studies is to be interpreted as a testimonial or endorsement of the firms’ investment advisory services.