7 of the Most Successful Deals on Shark Tank

Performing a business valuation is complicated, to say the least. From varying formulas to varying investor interests, a company’s value is largely dependent on revenue trends, industry and customer concentration, profit margins, EBITDA, personnel, and competitive advantages. But that’s not all that matters. Entrepreneurs must knock their pitch out of the park in order to secure funding, and that’s the basis behind the popular television show Shark Tank. While most people have tuned in for at least an episode or two since its 2009 launch, it can be difficult to keep track of the hundreds of deals that have come through its doors.

The reality is that even the world’s best ideas mean little without an investor. Deep pockets are imperative to giving good ideas life, and the best chance at becoming great. Shark Tank is entertaining for a number of reasons – from unique pitches to banter between the sharks to seeing the success of past inventions who made it big. And since the sharks invest their own money, not money provided by the show itself, viewers are able to see how fierce the investors become as they vie to sink their teeth into the next big idea.

Booms and busts are aplenty on Shark Tank, but the following are some of the most successful deals ever made on the show:

1. Bombas: the comfortable sock and t-shirt company got the attention of shark Daymond John who invested $200,000 for 17% stake in the company. The company boasts $225 million in lifetime sales.
2. Scrub Daddy: this reusable sponge gets soft in warm water and hard in cold water, and with $209 million in sales it is one of Shark Tank’s most impressive deals.
3. Squatty Potty: a stool that helps people with their bowel movements piqued the interest of Lori Greiner who paid $350,000 for a 10% stake in the company.
4. The Original Comfy: Barbara Corcoran invested $50,000 for a 30% stake in this wearable blanket company.
5. Vengo Labs: connecting brands to consumers with digital out-of-home media, Vengo Labs was offered $2 million in venture debt for 3% equity by Kevin O’Leary, making it the biggest Shark Tank deal to date.
6. Larq: this self-cleaning water bottle that uses ultraviolet light to purify the water got Lori Greiner and Kevin O’Leary excited enough to offer $1.5 million for 4% of the company.
7. Chirp Wheel: focus on back pain relief, this exercise wheel company accepted an offer of $900,000 for 2.5% that would be repaid in 2 installments over an 18 month period.

Another notable mention would be Ring, who was rejected on Shark Tank and went on to be acquired by Amazon. The smartphone and camera doorbell/security system has gone on to make millions. While Shark Tank doesn’t always get it right, it proves how important an engaging, informative pitch can be in determining business valuation numbers.

At Ellrich, Neal, Smith & Stohlman, P.A., our trained valuation analysts have the qualifications and experience to value a business for a variety of purposes, including the purchase or sale of a business, divorce of an owner, estate and gift matters, business and contractual disputes, eminent domain condemnations, and to assist in financing. Please contact our Palm Beach Gardens, Miami, or Orlando offices to speak with one of our business valuation experts.