Ann: Appointment of M&A Specialist, page-14

@Fire Bull a combination of looking at the register, watching the trading for the last 6 months+ (every run is crushed by a big seller) and talking to management. Its enough to stop me buying right now, if it dipped significantly I would probably buy some.

Yeh it seems irrational but with these types of businesses it often makes more sense than buying them on an earnings multiple because the acquirer is usually a much larger business. So while seeing company A buy company B for a a revenue multiple of 3x when company B makes no profit sounds expensive and a bad decision, if company A can immediately remove all the duplicated costs of the smaller business and have it produce margins similar to the rest of the company then it actually doesn't turn out that expensive. Then you have the expanded revenue opportunities of company B when it is part of company A, etc. Not saying it is always wise, but there is logic behind it for these types of companies, and Statseeker will sell on a revenue multiple not an earnings multiple.