The following are actually REAL negotiations between entrepreneurs and investors (Guppies & Sharks). The sharks invest their own money at their discretion. The guppies get devoured into a belly of finance, or spit back into the ocean of hard knocks to fend for themselves. The entrepreneurs must convince the sharks to invest the FULL AMOUNT, or walk away with NOTHING.
THE GUPPY: Dominique McClain Barteet
THE COMPANY: One Sole
SYNOPSIS: the original interchangeable shoe
SEEKING: $500K for a 20% stake
PRODUCT/SERVICE: A shoe with an interchangeable top with thousands of varieties to choose from.
WHAT'S THE SKINNY?: The retail for the shoe and a solid top is $70-$85, the tops are separate and they range from $12-$30. She has grossed over $20 Million in shoes in the past 4 years, she's in 2,000 stores in over 30 countries, she's been on several TV shopping networks and was very successful. She's been on QVC 6 times with no advertising and marketing. She's at over $4 Million in sales this year, last year's sales were $3.5 Million, profits last year were over $1 Million, she makes a profit of 30% average, She sells them packaged with a pair of shoes and a bag sometimes to retailers that cost her $18 for 3 tops, a pair of shoes and a bag, she sells it to stores for $35 and they turn around and sell it for $85-$90. She has 2 utility patents and 2 design patents that are issued, more that are pending, and she's trademarked in 98 countries. There is a company in Japan that wants a $1 Million dollar order of 10,000 pair and 30,000 tops and JC Penny wants her domestically. She needs the money to fill in big orders that are coming in from Switzerland, to New Zealand to Australia and more. Yes. She is the REAL DEAL.
STATS: Kevin O'Leary asks if she would sell the whole business and she says she doesn't know if she wants to do that. Robert offers her $100K for 10% and tells her that if she gets the other 4 sharks in they'd go 50/50 and she gets the $500K. Kevin Harrington likes the product but he's stuck on the 50/50 evaluation of half a million for half the company so he's on the fence. Daymond believes in the product so much he decides to offer her $500K for a 35% stake but he doesn't want any partners on it. Barbara likes her but thinks the company will take up too much of her time so she's out. Kevin O'Leary decides to get in the mix with an offer of $500K for 51% stake but she immediately turns it down. He wants to hire a banker to sell the company and have the buyer fire her after making her filthy rich. Kevin Harrington decides to bring Robert in at $250K a piece for 50% stake. Dominique thinks Daymonds offers is the better offer ands decides to accept it and walks out with the investment.
CAME IN SEEKING: $500K for a 20% stake
WALKED WITH: $500K for a 35% stake
GRADE: (Guppy): A
GRADE: (Sharks): A
COMMENTARY: Dominique is the real deal Hollyfield. She has sales, good profits, offerings for more distribution, patents in a variety of other countries, and the list goes on. Daymond immediately smelled money in the water and decided to bite down generously. I think she chose the perfect strategic partner for her product. Good job Dominique.
WHAT DO YOU THINK? COULD SHE HAVE GOTTEN THE SAME CAPITAL (OR HIGHER) WITH A LOWER STAKE? WHERE THE SHARKS FAIR IN THEIR NEGOTIATIONS? DID BOTH PARTIES COME OUT ON TOP? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........