Dave Alwin, of Echo Valley Meats, would like the Shark Tank to consider investing in his company. It’s his second time in the tank, after being turned down about a year and a half ago.
Now he’s ready to try again, and says he that now that he has his marketing strategy down and his customer acquisition costs under control, he’s ready for the sharks to invest in his company.
After he was on the show before, business boomed, but he still took the sharks’ advice and looked into his business practices, and now he says he wants to focus on the mail-order side of his division.
He’s asking the sharks to invest in Echo Valley Meats so he can purchase inventory in bulk at its lowest prices, in order to offer lower prices.
For a $150k investment, Alwin is offering equity in the amount of 20%. This is half the investment he wanted for the same equity last time.
He’s projecting $1.8 million in sales in the mail-order meat sector this year.
The sharks’ major concern was that last time, Alwin couldn’t name a cost of customer acquisition, didn’t have a satisfactory valuation, and otherwise seemed unsure of his numbers. This time, though, he rattled off costs, percents of repeat customers, profits, and other numbers easily, and it was clear the investors were impressed with the improvement.
Despite this, Alwin had barely finished his pitch before the first shark was out: Lori Greiner said she would be the wrong partner, since she’s not much of a meat eater.
Kevin O’Leary was the first to make an offer. He’d give the amount asked, but for 20% of the whole business, not just the mail-order segment, and add one additional condition — Alwin would also sell Wicked Good cupcakes on his website, with Alwin getting a cut of the profit.
Herjavec was next, with an offer of $300,000 for 35% of the whole business.
At this, Kevin modified his offer, saying he’d take only 17.5% of the company for the same $150k, in order to match Robert’s valuation.
Mark Cuban had an offer too: $150k as asked, but for 25% of the mail-order business, with an option to buy 25% of the other portion of the business for another $150k. However, he said, he needed an answer right away.
With no hesitation, Alwin agreed. “You have a deal.”
Final Deal: Mark Cuban invested $150 in Echo Valley Meats’ mail-order division for a 25% stake, with an option to make the same deal in the retail division.
Photo: Echo Valley Meats
This article was syndicated from Business 2 Community: Shark Tank: Mark Cuban Takes A $150k Cut Of Echo Valley Meats
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