Patience is a Virtue
The Situation: Two older brothers owned and operated a manufacturing company for over 60 years. They owned the real estate as well, and wanted a very high premium for their business and property, well above what the market would typically dictate for what they owned.
The Result: Kensington explained the realities of the market place but was willing to work on the opportunity in an attempt to get the brothers what they desired. Kensington arranged many meetings with buyers for the brothers but none were willing to pay the price the brother wanted, and they stayed firmed on their price. For eight years Kensington continued to work with the brothers informing them of how the market viewed their business while bringing them more buyers. Over the years the business remained a very strong company, but their overall revenue and earnings declined, yet their price stayed the same. After 8 years, the two brothers at the age of 92 and 87 finally decided to have an open minded towards lowering their price. The Kensington Team worked with the brothers in determining an appropriate price and quickly began to market the opportunity at a reasonable price. There was a lot of interest instantly including interest from buyers who had previously been interested in the opportunity, but felt the price was too high. Kensington spent a full day with the brothers at the factory where they toured the facility and met with over 12 buying groups over 8 hours. Shortly after the day of marathon meetings, the brothers received their full asking price and ultimately sold the business to two partners with extensive manufacturing experience.