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Old 09-16-2012, 12:56 PM   #601
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Re: The Shark Tank

i agree that the bedbug business was genius, collusion was cheesy and unfair.
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Old 09-16-2012, 09:26 PM   #602
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Re: The Shark Tank

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i think beddy bugs was one of the best products in the shows history and that they sold way too cheap. didnt the price they sold at totally contradict another offer that they said they had already turned down? getting all 5 sharks is nice but given that the sharks had to pretty explicitly collude to make that price happen it seems very likely they could have gotten a much better deal.
my thoughts exactly
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Old 09-17-2012, 05:54 AM   #603
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Re: The Shark Tank

really sick of seeing super positive people overselling gimmicky **** like that belt buckle

daymond was really bad tonight, shame as he is usually my favourite or close to it
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Old 09-17-2012, 06:39 AM   #604
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Re: The Shark Tank

I'm not qualified to put a dollar figure on the value of having the 5 sharks each working with you but I would imagine that it is significant. Assuming it's $1m then they are already break even versus the $5m for 100% and my guess is that it's much higher.
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Old 09-17-2012, 06:44 AM   #605
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Re: The Shark Tank

that deal is not gonna go through imo
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Old 09-17-2012, 04:29 PM   #606
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Re: The Shark Tank

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that deal is not gonna go through imo
why not?
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Old 09-24-2012, 05:22 PM   #607
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Re: The Shark Tank

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I'm not qualified to put a dollar figure on the value of having the 5 sharks each working with you but I would imagine that it is significant. Assuming it's $1m then they are already break even versus the $5m for 100% and my guess is that it's much higher.
Each additional shark adds to the total value, but decreases the per shark value. This is because there is a ceiling to what can be brought to the table. An easy way to illustrate this is to imagine there are 1000 sharks. If each shark is worth $1m then to sign them all up means you just made $1b. Obviously that isn't the case.

Having more sharks can also be a hindrance. For example, if there are different ideas on what should be done with the company and you end up with a bunch of infighting. Still, most people would want the extra sharks, because (a) you are more likely to get the shark(s) that has the skills/connections which best serve your company and b) the cumulative benefit of all skills/connections, even given that some sharks will add zero or next to zero.

The point is, certainly the 250k along with the 5 sharks is worth more than 250k from my pet monkey, but I doubt it's 4.75 million more, especially given how far they've already taken the company and it seems like they don't need much help.

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that deal is not gonna go through imo
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why not?
Because they will realize they gave up too much for too little.
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Old 09-24-2012, 06:01 PM   #608
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Re: The Shark Tank

Well the 5M deal they passed on means they would obv have 0 equity. If they think they can generate hundreds of millions over the course of years then having a large chunk of equity in it is worth more than 5M. gamb0000000l
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Old 09-24-2012, 06:06 PM   #609
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Re: The Shark Tank

Obviously, they think the remaining equity is expected to be worth more than $5m. The point is, that's not due to each shark adding $1m.
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Old 09-24-2012, 06:29 PM   #610
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Re: The Shark Tank

The eCreamery business hit gold.

Gave up 0% equity and got national exposure with all 5 sharks endorsing the ice-cream as the best they've ever had. I bet a few businessmen are knocking on their door offering to help.
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Old 09-24-2012, 07:58 PM   #611
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Re: The Shark Tank

They give up a % off the bat for being on the show.

It is discussed somewhere previously in this thread.
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Old 09-25-2012, 04:58 AM   #612
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Re: The Shark Tank

According to the show's website each business gives up 5% equity plus 2% of sales, regardless of whether they get funding from the sharks or not. Seems like a lot to give up, but I guess the exposure on ABC can be very valuable.
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Old 09-25-2012, 07:49 AM   #613
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Re: The Shark Tank

the ecreamery website is interesting, worth checking out.

no more vanilla gifts is their current thing. that annoys the **** out of me as the only worthwhile ice cream flavor is vanilla. ice cream companies should be doing all they can to perfect their vanilla ice cream.
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Old 09-25-2012, 07:50 AM   #614
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Re: The Shark Tank

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Because they will realize they gave up too much for too little.
yeah +1, but i dont think the sharks go through with it anyway. i doubt that deal in its current standing has all 5 sharks agree to it the next day.

i think a majority dont go through, i dont think its a stretch to say that the most convoluted bull**** deal probably in the history of the show is going to be in that majority?
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Old 09-25-2012, 12:29 PM   #615
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Re: The Shark Tank

While I usually agree that the more complex deals are more likely to fail in the due diligence phases of negotiation, in this particular case I expect the bed bugs deal to go through, simply because the sharks get so much out of it. Even if they have to deal with a little extra bullcrap or unforeseen issues, they're more likely to work through those issues when they're each getting upwards of a few hundred grand in equity.
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