I am sure that the introduction of competition is the most advantageous factor in the negotiations concerning the sales of your company shares.
Recently, we were having dinner with the owner and coordinator of a company from the Far East together with one of our clients. The coordinator had been conducting the discussions concerning the acquisition of the shares of my client. During this dinner the owner of the company form the Far East quoted me a price for the shares of my client which was lower than the expectations of my client. I thanked him. Each quoted price shows us that there is interest in the acquisition process.Then the coordinator had a long explanation for me, trying to show that although this price was not high, it was in reality very good. He said that my client would really receive the main gain in the long run, as a result of their partnership.
I informed my client, who was sitting at the other end of the table, about the quoted price. I told him to inform our guests from the Far East, when he took them to their hotel after dinner, that we have decided to cancel the scheduled meeting of next day and that we would take them from their hotel next evening to bring them to the airport for their return trip. We would tell them that we have decided to continue with the negotiations with other interested parties and not with them.
A complete description of the developments in this project would take up too much space here, but I would like to summarize the main events: Four months after that dinner this prospective buyer came to visit our client once more to discuss their new offer, in which the price for the shares was three times their initial price. During this meeting I noticed that the coordinator of the prospective buyer had been more silent in comparison to previous meetings. When I asked him the reason of his silence, he said “I do not wish to be once more taken to the airport in a hurry.”