When a successful person sees parts of themselves in you from the past, it’s usually a good sign. Not in Mark Cuban’s case. On Friday’s episode of “Shark Tank” on ABC, Mark Cuban made a big offer to a company called Collars & Co. that makes casual polos with dress collars. But he did it carefully because the founder’s pitch had a trait that Cuban knew from his own past to be off-putting.
Cuban said, “He made me think of me; I’m not going to lie.” “Young people don’t know what they don’t know.” “I didn’t listen as much as I talked.”
Shark, a guest, and CubanPeter Jones worked together to offer Baer a $300,000 investment and a $700,000 line of credit for 10% of Collars & Co. At the time of taping, the company had made $5.4 million in sales since it started up in 2021. The deal was reached after many rounds of tense talks.
It all started when Kevin O’Leary made an offer to buy 10% of the company for $300,000. He said it was the first time he had ever made an offer to a shirt company.
O’Leary said that for Baer to make $5 million in sales so quickly, he “must have executional skills that others [in the business] don’t have.”
Baer laughed at the offer and said that he would only give up 4% of his business for $300,000.
Baer said that O’Leary’s estimate of Collars & Co.’s growth was too low. At the time of the taping, the company was on track to make $10 million in revenue in 2022.
He also said he didn’t want to give away 10% of his business. Instead, he wanted help from a mentor and a line of credit so he could build up his stock, put money into marketing, and grow his team.
The other sharks were also shocked. Daymond John said that turning down O’Leary’s offer was a mistake because Baer’s shirts would be out of style quickly if the economy went into a recession.
Jones then made the same offer as O’Leary, saying that he would be a better business partner. He had invested in fashion companies in the past, which already had infrastructure that could help Collars & Co. grow, he said.
Baer turned down the offer once more. The tank blew up.
Cuban asked Baer how much money he would really need to get where he wanted to go. The answer is a line of credit for $700,000. Cuban said he would work with Jones to add that line of credit to the deal on the table, but Baer said he would only give up 5% of his company.
Jones tried to explain why he thought 10% was a fair offer, especially between two sharks, but Baer kept talking over him. As Cuban’s anger grew, he pointed out that the offer was better for Baer than for the Sharks.
“If Jones and I don’t make this deal, nothing will change in our lives.” Cuban said, “We’re still going to be f—-ing rich.”
The other investors pulled out, so only Cuban and Jones’ offer was still on the table. Baer asked if they’d be willing to buy 7% of his business. Cubans said that 10% was the best they could do.
Since Baer had no other choice, he agreed.
Jones and Cuban wondered how the three of them would work together in the future after Baer left, but Baer seemed happy with how the negotiations and deal turned out.
He said, “The fact that Mark Cuban and Peter Jones are now my mentors means a lot.” “One day, I hope to be sitting in one of the shark chairs next to them.
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