Shark Tank has been a launching pad for some incredibly successful businesses in recent years. Over the show’s eleven-year history, the sharks have invested over $100million into the businesses of hopeful entrepreneurs who have dared to enter the tank.
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But did you know that not all the deals shown on the show actually go ahead? Lori Greiner, the self-confessed Queen of QVC, spoke about what happens after you see the sharks shake hands with their new business partners…
A lot happens on Shark Tank after a deal is made on the show
“Right after I give them an offer on Shark Tank, the first thing I do is call them,” she told Inside the Shark Tank magazine. “I’ll call them even though we’re still shooting. I just want to get to know them.”
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“It’s a handshake deal, so we have to learn more. My due diligence team gives me a nice report on everything about the company, and then we all sit down and determine what would be best for everybody.”
“It’s not just, ‘Oh, here’s money and I get this percentage,'” she continued. “It’s a very careful, thoughtful analyzation. I want everybody happy. Me, my team, the entrepreneur, their team. Because if you don’t have that, it’s never going to be good.
Lori says a lot happens between the handshake and becoming an investor
Many deals end up falling apart in the months-long vetting process, as the sharks get to know their potential new business partners, pour over the books and test to see whether the products actually work. If they find that they’ve been misled into making the deal, the sharks are able to withdraw their offers. In other cases, the entrepreneurs themselves back out of the deals.
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Fellow shark Daymond John said he believes that in the early days of the show only around a third of deals actually went ahead. Nowadays, he believes the closing rate is closer to 80%.
“As the show went on, the vetting process became more refined, the casting people became extremely adept at identifying quality companies, and the closing-rates rose significantly,” the FUBO founder wrote on his blog.
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Source: HelloMagazine
