'Shark Tank' judge Lori Greiner gives up 5% equity just to avoid partnership with Kevin O'Leary
As fans of "Shark Tank" know, things can get pretty heated up in the show, especially when two investors compete for a deal. That's exactly what happened when the co-founders of Marz Sprays entered the Tank and triggered a shark fight between Lori Greiner and Kevin O'Leary. While it looked like it would turn into a great partnership, the duo quickly stepped on each other's egos to pull the deal. In the end, Greiner ended up taking a 5% haircut on her ask to close the $200,000 deal.
In the episode, the father and son duo of Brandon and Keith Marz entered the Tank seeking $200,000 for 10% equity in their business. During their pitch, they presented Marz Sprays, a set of health sprays that replace pills. Their products included a weight loss spray, a vitamin C spray, and sprays that helped with the quality of sleep.
"Over 100 million people in the United States alone cannot or have difficulty swallowing pills. What's worse is they might not even work. If you took a vitamin B or a vitamin C pill, which may look like it's the size of Pittsburgh, you may only absorb 10 or 20% of it. As a father of two boys who refused to swallow any pills, I knew something had to be done," Keith explained. Thus, they claimed that their sprays were much more potent and easier to absorb for both kids and adults.
Once the Sharks checked out their samples, they asked for the numbers. When the duo admitted that they didn't have any major sales to show, the investors started losing interest. However, they grabbed their attention by disclosing that they were in talks for a licensing deal with Nature Made, one of the largest wellness companies in the country. They further shared that they had secured purchase orders of up to $1 million from European customers.
Despite the promising news, Daymond John became the first to drop out, saying he didn’t want to deal with European approval wait times. Robert Herjavec followed his lead, admitting he wasn't too interested in vitamins. Next was Mark Cuban, who had a few problems with the company. "I'm not a big believer that you have anything that's protectable. I think you've vastly underestimated how much money it's going to take to become the brand. I'm out," Cuban said.
However, Greiner seemed to spot something that the other Sharks missed. Thus, she made an offer of $200,000, but for 30% equity, and with a contingency that they would close the licensing deal with Nature Made.
O'Leary then jumped in praising Greiner's offer and her strengths in the market. He then asked her if she would do a joint deal for 40% equity, but Greiner straight up refused to work with him. Insulted, O'Leary said, "I threw her an olive leaf and she stepped on it. I am forced to do this now. I will give you the $200,000 for 25%," he said. "Do not screw with Mr Wonderful," he added, looking at Greiner.
With no choice left, Greiner had to lower her ask to 25% as well, just to snub O'Leary. "You should thank me! I saved you 5%! You should give that to me for free," O'Leary quipped. Brandon tried hard to convince the two Sharks to take a redemption option, but they did not budge. After a brief back and forth, the duo accepted Greiner's deal.
According to the Shark Tank Blog, the deal with Greiner ultimately never closed. However, Marz Sprays witnessed some success after their episode aired. They expanded internationally by selling directly to consumers online and through retailers. While the company was embroiled in multiple legal battles, its product is still available online.
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