Sharks Tear Check Up and Walk Away From Deal
It's hard imagining anyone going on a Show like the Shark Tank and getting a deal with 3 very successful investors only to have the check torn-up and the very last minute. You jump through all the hoops to get on the Show, successfully make a deal and pass due diligence, go to the closing and completely blow the deal. If you want to learn how NOT to deal with the Sharks, you might like to watch this video with Kevin O'Leary and Robert Herjevic in the first season of the Dragons Den filmed in Canada.
I watched this video a few time's and I'm still completely stunned something like this could happen so close to completing the deal. I almost felt a little sorry for Chris Nguyen, the entrepreneur behind the Jobloft.com concept, but it was his choice not to speak-up when he had the chance and a $200,000.00 check already in his hand.
Clearly the teacher that helped grow Jobloft to that point had a major problem with the deal concerning the Sharks long before closing day. In Business timing is everything, and this clearly wasn't the time. Asking the question "No offense but did any of you get a business degree" AFTER they just accepted a $200,000.00 certified check, is about as dumb as it could possibly get. The teacher might have had some good ideas for the business, but was it really a good time to start teaching a class? Watching the Sharks get a 12 minute business lesson is a classic moment I won't soon forget. LOL, that's just too funny.
The Sharks handled themselves like the professionals they are, but how many times can you attack a Shark before they turn around and bite you back? The teacher with his PHD just had to find out "How many insults does it take to destroy a deal when it's already 99% completed"? Insulting Jim Treliving about flying to the meeting on his private jet probably wasn't the smartest thing for the teacher to be teaching his students either, and what does that have to do about the business deal anyway?
Finally after explaining how insignificant the investors measly $200,000.00 was really worth, Robert Herjevic heard enough and snatches the certified check away from Chris Nguyen's hand. Ouch, now why didn't he put that check away in while he had the chance? By the look in Robert's eyes, I seriously doubt it would have made any difference once he made up his mind.
In the end, the students took the teacher's advice and walked away from the deal with the Sharks. (or Dragons as they're called in Canada) No doubt there's several very good lessons to be learned from all parties involved.. Kevin O'Leary wrote in great detail more about this deal gone sour in his book "Cold Hard Truth" . Now watching the video with my own eyes, it really makes you wonder how this deal proceeded as far as it did, and "why" did the teacher wait until the last minute before finally voicing his opinion?