The Shark Tank - Page 28 - Business, Finances and Investing Forum

She definitely knew. She even defendedher decision when all the other sharks pointed out how dumb it was. Definitely the most egregious error I've seen a shark make on this show. I'm no expert but I'd imagine that giving a start-up company a buyback is like #1 on the the list of things you don't do as an investor.

Quote

10-15-2012 , 07:14 PM

#678

IcyHotMonkey

veteran

Join Date: Mar 2005 Posts: 2,771

Quote:

Originally Posted by BigBiceps

Robert is my least favorite.
Like when he made a deal with the soap girl with the huge rack, then didn't go through with the deal when he found out she was married.

She definitely chose the right attire for her assets.

Quote

10-15-2012 , 08:09 PM

#679

ESKiMO-SiCKNE5S

What SN is this?

Join Date: Aug 2005 Posts: 29,325

is it a mistake at 5x buyback? what about 10x?

Quote

10-15-2012 , 08:34 PM

#680

BornToPun

adept

Join Date: Dec 2010 Posts: 1,041

Quote:

Originally Posted by ESKiMO-SiCKNE5S

is it a mistake at 5x buyback? what about 10x?

It's pretty much a mistake at any multiple. Why? Because the entrepreneur will only ever exercise his call if/when the actual value of the stock is greater than the price.

Even if you set the price at 1,000x, the only time it gets exercised is when the stock is worth >1,000x. This is what Kevin meant when he referred to it as a deal with no upside for Lori.

Quote

10-15-2012 , 09:21 PM

#681

SretiCentV

Pooh-Bah

Join Date: Oct 2006 Posts: 3,695

Quote:

Originally Posted by NLSoldier

i got the impression that lori didn't even really realize she was agreeing the the buyback option.

For a second it looked like it but she countered and they settled on her counter so she had to know. Huge error though as stated multiple times already

Quote

10-15-2012 , 09:30 PM

#682

LT22

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 12,842

Quote:

Originally Posted by BornToPun

+1 I just re-watched the end of the episode and she sat there and told the other four to get bent and that the guys deserve the chance to buy back their equity. Wow what an idiot.

He offered 3x for half the stock and then she replied back as if she was awesome that if he truly believes in the company it would cost him 4x, LOL

Quote

10-15-2012 , 10:45 PM

#683

d2themfi

veteran

Join Date: Jan 2007 Posts: 3,262

Quote:

Originally Posted by BigBiceps

Robert is my least favorite.
Like when he made a deal with the soap girl with the huge rack, then didn't go through with the deal when he found out she was married.

haha, what? Cant just say that and not provide a link/article or something

Quote

10-15-2012 , 10:50 PM

#684

Steven_Q_Erkel

Pooh-Bah

Join Date: Sep 2005 Posts: 3,622

From what has been said about the show so far regarding due diligence and deals falling through I don't expect the buy back option to stick.

Quote

10-16-2012 , 02:04 AM

#685

weirdchess1

old hand

Join Date: Oct 2009 Posts: 1,474

Just curious, does anyone here know how long a standard presentation & negotiation on the set is? I know we see about 10 minutes for each presenter but I've heard that discussions and questions on the set can take up to 1-2 hours. My google-fu is failing me and I can't find any info.

Quote

10-16-2012 , 07:38 AM

#686

IcyHotMonkey

veteran

Join Date: Mar 2005 Posts: 2,771

Quote:

Originally Posted by d2themfi

haha, what? Cant just say that and not provide a link/article or something

He posted the article 2 posts later.

http://news.cnet.com/8301-19882_3-57...eo-perseveres/

Quote

10-16-2012 , 08:26 AM

#687

TomCollins

Carpal \'Tunnel

Join Date: Jul 2003 Posts: 43,058

Quote:

Originally Posted by BornToPun

Is it a mistake if you end up with more equity overall? Or pay less to invest? There are times when it clearly would not be a mistake. In reality it might be rare, but theoretically it could be fine.

Quote

10-16-2012 , 11:04 AM

#688

dukemagic

Pooh-Bah

Join Date: Jul 2006 Posts: 4,899

Quote:

Originally Posted by IcyHotMonkey

He posted the article 2 posts later.

http://news.cnet.com/8301-19882_3-57...eo-perseveres/

Quote:

Originally Posted by dukemagic

I didn't see anything in there about Robert breaking it off due to her marital status.

Quote

10-16-2012 , 03:50 PM

#689

weirdchess1

old hand

Join Date: Oct 2009 Posts: 1,474

Quote:

Originally Posted by TomCollins

Is it a mistake if you end up with more equity overall? Or pay less to invest? There are times when it clearly would not be a mistake. In reality it might be rare, but theoretically it could be fine.

Presumably he's only going to cash in the redemption if the stock is now worth more than the 4x price (is there an expiration date?). So Lori is basically just adding a stop-win that she can never get more than 4x her investment back on that equity. Only reason she would add this in is if she thinks it is necessary in the negotiation to get a deal done; that clause can only hurt her of course.

Quote

10-16-2012 , 04:28 PM

#690

DosXX

veteran

Join Date: Apr 2007 Posts: 3,034

The details are fuzzy, but wasn't she competing against Kevin with the same offer? If so, she might have been concerned Kevin was winning over the contestant so agreed to the buyback.

Quote

10-16-2012 , 04:45 PM

#691

BornToPun

adept

Join Date: Dec 2010 Posts: 1,041

Quote:

Originally Posted by DosXX

The details are fuzzy, but wasn't she competing against Kevin with the same offer? If so, she might have been concerned Kevin was winning over the contestant so agreed to the buyback.

Possibly. but offering money or reducing equity are both >>>> offering a buyback on half the equity she was purchasing.

Quote

10-16-2012 , 04:55 PM

#692

BornToPun

adept

Join Date: Dec 2010 Posts: 1,041

Quote:

Originally Posted by weirdchess1

Lori did an AMA (ask me anything) thread on Reddit. Most if it is fluff but there's a bit of good stuff, including her stating that the shortest pitch ever was 28 minutes and the longest was 1h45m.

Lori Greiner's AMA on Reddit

Quote

10-16-2012 , 04:57 PM

#693

weirdchess1

old hand

Join Date: Oct 2009 Posts: 1,474

That's exactly what I was looking for, thanks!

Quote

10-16-2012 , 07:10 PM

#694

IcyHotMonkey

veteran

Join Date: Mar 2005 Posts: 2,771

Quote:

Originally Posted by BornToPun

Quote:

[–]NotJackLondon
Can we spice up the AMA and talk about fapping now?
permalink
[–]SharkLoriGreiner[S]
How about you fap, I'll keep talking ;-)

ha.

Quote

10-16-2012 , 08:07 PM

#695

TomCollins

Carpal \'Tunnel

Join Date: Jul 2003 Posts: 43,058

Quote:

Originally Posted by weirdchess1

But there is a price that that becomes worth it. Of course he's only going to cash it in only if it's worth 4x the current price. She gets 4x on that equity (or likely 0) and she gets whatever the remaining value is later. It's simply a piece of the negotiation. If she can offer 50k for 25% straight up, or 50k for 50% with a 25% buyback for him at 4x, it's clearly better to do the 2nd option. If she can do 45% with that same 25% buyback, it's murkier. But the point is there are numbers this works. Or if she only invests 40k for that situation. There are numbers where it's to her advantage.

Quote

10-17-2012 , 12:20 AM

#696

weirdchess1

old hand

Join Date: Oct 2009 Posts: 1,474

Yeah, of course, if she's getting more equity or cash for the redemption option then there's a trade-off point. It just sounded like there were two packages being negotiated:

1) $200k for 25%.
2) $200k for 25% with redemption offer 4x for 12.5%.

Between these 2, package 1) is clearly way better for Lori, and I don't think it's close. Especially because much of the value of these small businesses is that some small percent of them grow 50x or 100x in size, having a forced cutoff at 300% ROI is a big hit to take which Lori didn't seem to care about (with what little we saw of her).

Quote

10-17-2012 , 12:25 PM

#697

NLSoldier

Carpal \'Tunnel

Join Date: Feb 2004 Posts: 24,252

Quote:

Originally Posted by BornToPun

i realize she defended it after but I thought that was only to save face after realizing her mistake.

Quote

10-17-2012 , 02:59 PM

#698

stinkypete

Carpal \'Tunnel

Join Date: Jul 2004 Posts: 15,783

Quote:

Originally Posted by NLSoldier

i realize she defended it after but I thought that was only to save face after realizing her mistake.

it was obviously to save face, but it was more like she realized she didn't understand how good/bad giving up that option was than realizing it was actually a mistake.

Quote

10-18-2012 , 08:21 PM

#699

WiltOnTilt

veteran

Join Date: Aug 2004 Posts: 2,893

I thought the lady with the dresses did a very good job in the tank. It was smart for her to ask Lori and Daymond to go in together and when that didn't work out and Lori wanted to try to strong arm her, she went the other way. She seemed a lot more composed than most people who go in there.

Quote

10-18-2012 , 10:40 PM

#700

TomCollins

Carpal \'Tunnel

Join Date: Jul 2003 Posts: 43,058

Quote:

Originally Posted by weirdchess1

Well she wanted 1, he wanted 2. The question comes down to whether it's worth risking the deal for her to push harder for 1. It's not as simple as her picking between two options.

Quote

Page 28 of 125

First

8 18 23 24 25 26 27 28 29 30 31 32 33 38 48 78

Last

Post Reply Subscribe

...

Page 28 of 125

First

8 18 23 24 25 26 27 28 29 30 31 32 33 38 48 78

Last