RE:RE:Processors many never get the same vaulations as producers. Some will develop with their own facilities. That is the most cost-effective and best approach. Buy and set up equipment and hire people with experience by paying a little more. So far it is very easy to raise money and some of the big companies are loaded with cash.
Large companies with big pockets may buy out existing companies. That way they will buy turn-key operations with expertise and revenue and pay through their nose. Paying big premiums usually is not a smart move and ends up in big writeoffs. . Some of the revenue will evaporate in this business because the completion will leave and take their business somewhere else.
VLNS paid big bucks to buy plant, expertise, and revenue for the last acquisition. I have seen these films many times. I think it was a desperate move to buy revenue. I have a feeling that if they had not sold the inventory at a huge loss the revenues for the Q4 would have been really low and not even $16 m they reported.
If the acquisition was that good why they did not disclose any revenue figures? Think that facility is around 5 - 6000 sqft. that building and equipment cannot be worth too much. So they paid big bucks for the revenues. When the companies do not disclose figures they are hiding overpayment and scrutiny.
VLNS needs to develop its own brand products and market them.