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If you win the first battle of the final showdown swiftly and decisively you won't even have to fight a second army so be sure to fight in the area given in the region you're attacking.
You can continue playing the map if you wish when the baron has been defeated.
Below is my experience with barons and mercs.
The barons gobble up the mercs, there are only handful of mercs available and once they are hired by either the baron or player, they are basically no longer available. Another player hopefully will chime in and give more details, but this is from my experience. (from playing the merc achievement).
I believe there are 8 groups of mercs and have heard they are all available in the merc pool within the first three months.
Each month 3 mercs of the 8 are available to hire. Once all mercs are hired, then no more available.
The barons will hire mercs form the active available mercs hiring screen when they attack a player's region or other region.
They also do this when there is a bandit camp, they do not seem to use their troops but buy a merc off the shelf to attack the bandit camp and that merc is not heard from again.
The mercs are generally bought in the first three years or less. So one needs to get regional wealth and then covert it to Kings wealth via taxes at a built manor.
For the merc achievement, one has to basically go all econ mode from the start with berries, planks, shields, honey, etc., go get enough regional wealth which can then be convert via taxes to purchase the mercs.
I had to done this a handful of time and finally have 9 merc troops before they are gone.
Also, as a side note if one of my mercs have lost troops, i save the game, disband the troop then it becomes available the beginning of the next month and i buy it back at full strength (this is the only exception to getting mercs back on the buying block that I am aware of).
This is imperative when taking on the barons last region as this is where he'll field the largest army by far as you found out. It can easily be beaten once but twice in a row is ridiculous as you found out.
When I started the game I did not use mercs and just used a raised army.
You can set the game to not have the Baron attacked your land, I forget the name of the option, but it is in the start up screen. Good way to get your feet wet. If you choose this option, one can focus on just having fun developing one's village, then when you have enough resources build an army.
Raised army do not cost any coin they just need weapons, which you can produce with level 2 homes. And your folks are in the army without the need to hire troops.
Also, by year three or so, you should have enough of an economy to at least have a merc or two. you might not have two 110 coin mercs, but the two archer one i think is 40 or 50 coin, which is doable.
There are a few ways to get coin early, one of the easiest is to sell berries in the first year or two. I also, select the berries perk to double my berries.
Also, nice to have a good start map, what I did early on was start the game and before I started to build, check the berries (and see if it crown or not) and check the land fertility. Early on nice to have high fert. If I did not get what I wanted I just exited to main menu and restarted till i got a good start map.