BIH Corporation (fka BIHC)

[Carpedeim357]

Try and see why buyer would pay a big premium for Baron. Buyer is not buying Baron to just operate Baron and what it can make. IMO with new contracts this year Baron earnings projections went way up. That is why taking so long to agree on a price. mAYbe adjusted projections have Baron making 3 to 4 million per year.

Now why would buyer pay even say 10 times Baron projected earnings which happens when buying small companies. Buyer clearly came to buy Baron as they need them for their plans.

Say Baron becomes a major part of what they can offer clients in addition to what they already sold. Say without Baron they could not bid on some big contracts without Baron. Thus not grow as they want to.

So buying Baron gives them ability to bid on bigger deals and more contracts then without. Not only for paying a high price do they get Baron revenues and clients but ability to greatly expand their existing business.

That is why a buyer would pay high price for Baron. It can add so much to the buyer numbers for years helping them win more deals they would not have without Baron. IMO buyer has big plans and came to buy the missing piece needed Baron.