Kevin O'Leary was ready to invest in a nurse's company but he had one brutal condition: "You got to..."
Although Kevin O'Leary does seem affable during pitches on "Shark Tank" and even gets emotional once in a while, he can be sharp while scrutinizing numbers and ruthless when it comes down to negotiating a deal. Maternity nurse Melissa Gersin came to the business reality show with a unique childcare product and sought $100,000 for 10% equity in her company, Tranquilo. The maternity nurse combined her experience and expertise to create a vibrating baby mat that replicated the soothing sensations of the womb.
"I'm a maternity nurse and as an infant crying specialist I know the secret to stop any fussy baby's wails the trick is to activate a baby's calming response by mimicking what they've experienced in the womb," Gersin explained. But, while the product was good enough to impress sharks, Mr. Wonderful was rather blunt when he put forth his condition to invest in her firm.
Gersin demonstrated the product on a screen, and the sharks seemed to be instantly captivated with the results. She added that parents could use the infant care product practically anywhere without "losing their sanity" because the mat was washable, portable, and had a waterproof exterior. She then disclosed that she had patents and that, in less than a year, she made a profit of $65,000. After conducting some market research, she intended to retail the product for $99, even though it cost $20 to create. After the impressive pitch, Daymond John offered $100,000 for 20%, along with a licensing deal.
However, Kevin O'Leary had a shocking condition for his offer of $250,000 for 25% equity. He said, "If you really want to make this a business you got to be 100% focused I'll give you a quarter of a million dollars for 25%, you got to stop working you've got to be 100% getting smart that's enough Capital to get you going replace your salary and you can build some inventory." Lori Greiner agreed with him and added, "I think he gave you a great offer he's giving you basically what you asked for but he's giving you more money but you have to give up a lot more." Gersin created the product herself, contributed $180,000 of her own funds, worked 80 hours a week as a nurse, and invested in the company.
"I actually won't do the deal unless you quit your job," O'Leary clearly stated. However, Gersin remained indecisive about the equity that she was willing to share. She offered 15% to O'Leary, which he countered with a demand for 20%. The other sharks backed out after noticing that the maternity nurse was not ready for a profitable deal. All eyes were on Robert Herjavec, who put in an offer of $200,000 for 15%. Gersin acknowledged the deal and accepted it, as per Looper, but the final details did not work out for both parties, and it fell through. The maternity nurse did not quit her job and failed to make time for the growth of her business. The Betesh Group's infant products branch, Boom Consumer Products, purchased Tranquilo in 2018. Gersin released a press statement saying, "I'm excited to have sold 'my baby' to Baby Boom so that they can bring this unique and effective sleep solution to parents around the world."
