Shark Tank: Wine and Design Accepts $500,000 Offer from Kevin O’Leary
By Erica Abbott
Wine and Design
First into the tank are Patrick and Harriet Mills of Wine and Design, seeking $500,000 for 10 percent equity.
Wine and Design is a wine-and-painting experience that is fun for both parties or team-building events. Their art studios offer paint-and-sip parties for all ages and interests. According to their website, “a local artist guides each student with stroke-by-stroke instructions to ensure you paint your own unique masterpiece, while sharing the experience with your fellow classmates.” They currently have more than 75 locations with the option to open franchises in other cities. They hope to hit 100 locations this year.
This year, they are expected to do $10 million in sales. Next year, they are projected to do $12 million to $13 million. All of their franchise locations are owned by women.
Mark Cuban doesn’t see the number of locations and profits matching up and goes out. Kevin O’Leary and Robert Herjavec agree that it’s mispriced and suggest that the only good way to get their money back would be to sell the entire business. Barbara points out how much competition there is and doesn’t like the valuation so goes out. Lori Greiner has concerns over the competition and goes out as well.
O’Leary decides to offer $500,000, with $350,000 as a line of credit at 12 percent interest, for 10 percent equity. Herjavec also jumps in with an offer of $500,000 for 33.3 percent. They ultimately accept O’Leary’s offer.
Each week on “Shark Tank,” budding entrepreneurs have the opportunity to pitch their emerging business to six multi-millionaire and billionaire investors, known as sharks: Mark Cuban, owner of the Dallas Mavericks; Daymond John, fashion mogul and founder of FUBU; Kevin O’Leary, self-proclaimed Mr. Wonderful and founder of O’Leary Financial Group; Barbara Corcoran, real estate maven; Lori Greiner, queen of QVC; and Robert Herjavec, technology guru and founder/CEO of the Herjavec Group. Venture capitalist Chris Sacca is also slated to appear as a guest shark this season.
“Shark Tank,” which is based on “Dragons’ Den,” is produced by Mark Burnett and first debuted in 2009. To date, the sharks have invested more than $87 million in various companies after engaging in numerous bidding wars and shark fights. A new episode airs each Friday at 9 p.m. on ABC.
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