ENTREPRENEURS: Stuart & David Pikoff
ASKING FOR: $500k for a 10% stake
BEST PART OF THE PITCH: The Pikoff brothers claim to have the first and only mobile entertainment company of its kind. They have specialized vehicles containing 4D movie theaters and mobile video game theaters. There are all kinds of other fun products like a giant robot (which Robert personally tests) and Booger Wars (we won't go into detail on that one). They have over 140 franchises sold in 28 states. They do over 2,000 parties and events every month. They did $3.5 million in gross sales last year and are currently up 65%. Franchisees pay them $100k plus a 6% royalty per month.
DO THE SHARKS BITE? The brothers net $125k on that $3 million-plus they mentioned. They Sharks don't believe the business is worth the money they are evaluating it at. Daymond and Barbara are out immediately. Jeff admires the fact that these guys make money off boogers. But it's hard for families to shell out the cost of this product in this economy. He thinks it'll take too long to get his money back. He's out. Robert thinks the need to constantly develop new product is not a good business model. He's out. That leaves Mr. Wonderful.
THE RESULT: Kevin O. offers the $500k for a 51% stake. He wants control of the company. The Pikoff brothers take a minute to discuss the offer. They counter with $500k with 25% stake. Kevin O. can't get there. The only thing that speaks to him is money. The deal does not get done, but that doesn't stop him from taking the robot for a test drive.