You have been brought in as a consultant for Dave & Busters, a large North American "grownup arcade" and restaurant chain. The company is competing with several other potential investors to acquire the small North American ping pong club, Spin (with 9 locations.) Spin's owners have hired a medium sized North American financial services firm, Schulich Financial LLP, to help them market and sell their business.

Schulich Financial LLP will solicit bids for Spin which are due by midnight on May 15^th, 2022. They will consider each bid and then sell the company to whomever bids the highest. The high bidder will pay the current owners the amount that they bid.

Dave and Busters financial team has "run the numbers" and believes that Spin would be worth $4.2 million to their company. Dave believes they should bid $4.2 million exactly because he's "taken a lot of economics classes" but Buster believes they need to bid $3.7 million because that way they'll "create $500,000 worth of value if they win."

What thoughts/advice can you share with the management team at Dave & Busters? Be specific and use nothing but solid rational economic reasoning in your answer.