Examination Analysis on Two Businesses Selected in Shark Tank
This assignment requires that you understand the "equity ownership” and “valuation” concepts before you attempt it.
Please make sure you research these/review these key concepts before you proceed.
Select 2 recent (within the last 1 or two years) episodes of Shark Tank that interest you.
Watch the episodes and identify TWO business proposals that a member(s) of the Shark Tank Team are actually willing to invest in.
For each of the 2 businesses, please perform the following examination analysis. You should have at least 1 1/2 page per business case for a total minimum of 3 pages.
Discuss in detail the following key points:
1. The business idea/concept being proposed
2. What are at least three key business issues brought up by the Shark Tank investors related to the business in question-explain in detail
3. How much funding ($) is being sought by the owners.
4. What do the “investors" (Shark Tank Members willing to invest) want for their investment and how much equity (%) do they negotiate for this.
5. What are some of the key negotiating business points on each side (Shark Tank Members vs. Owners of the business)
6. What is the final deal. You must state this clearly and explain how the "valuation” was done and what equity the investors will receive (%) for their investment. Make sure you state what their final investment number ($) will be into the business.
7. What are some of the key Risks for the business moving forward?
Shark Tank
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Department, Institution Affiliation
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Shark Tank
Shark tank is one of the business series with adequate business ideologies and enhances individual growth and development. It is a platform for many investors since it adequately embraces new business ideas for implementation and growth (Shark Tank, 2022). It also allows investors to identify specific risk factors before engaging in the investment process adequately. Therefore, it is necessary to analyze the company's business ideas before executing them. It is also necessary to ensure all the businesses are valued and understood before making any investment decision. The paper examines the current business ideas of Shark Tank based on effective valuation methods and equity ownership concepts.
Business Idea 1: Namhya Foods
The second proposed business idea involves an Ayurvedic brand promoting healthy living. It is a sign that impressed the shark members due to health aspects. The three key issues brought up by Shark Tank Investors are food quality in the market, which the members agreed will be effective quality (Shark Tank, 2022). The second aspect was ownership which was also effectively addressed by focusing on an effective valuation method. The last issue is the supply chain of the business, which the owners assured the team to address.
The funding being sorted by the owners are $110,000. The amount cannot successfully allow the team to execute their investment plan due to more funds at the start. Shark Tank is willing to invest $180,000 (Shark Tank, 2022). The amount is justified since it will allow the owners to acquire start capital. The equity is 50 % to embrace strong ownership. The business approach would also allow the owners to coordinate with the team and limit any possible challenges whenever the business emerges.
The key negotiating business points are the Shark investment is claiming higher equity ownership while the owners advocate for 80% equity ownership. The negation is appropriate since Shark is funding more to the business and needs a larger share. The last negotiation issue is stock valuation, with the Shark team focusing on pre-valuation while the other team advocates post-valuation. The final idea is for Shark to have 50% ownership, similar to ...