When do the sharks on Shark Tank get their returns from their equity?

jerry55

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Dec 4, 2013
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Is it a quarterly thing from profits or just a payoff in the end if the company is gobbled up by a bigger company?

For example, if a shark buys 20% equity for $200,000, when does s/he start getting paid and how?
 


Depends what the companies' exit strategy is. Do they want to get bought out by a large competitor, license their product / technology, hope for an IPO, or what?
 
That depends totally on the shareholder agreement. It might be that they are paid dividends in certain frequency (again, depends on the agreement) or they might get paid only on exit. Interestingly it's something around 80% of the deals you see happening in the show never actually materialize after the recording because of due diligence.
 
^ that.

Sharks Tank/Dragons Den = Jerry Springer for slightly higher class. Just entertainment value + shopping catalogue of random ideas, like walking into a Canadian Tire.

Mebbe there'll be a prison doc called Grunin's Cage soon. More pro investing tips.
 
I miss this show and Dragon's Den Canada. I know there is an Ireland version and I think others, but I'm in the US and more interested in the US/Canada stuff. When are they coming back on?

I got my fix with "The Prophet" for awhile, but I need another good show like this.
 
^^^ I meant "The Profit" with Marcus Lemonis above. I can't figure out how much of that show is "real life" because the way some of those owners act in certain episodes is...odd.

Anyone know of similar shows that have aired recently?
 
If you believe that anything shown on television is "real life" you should seek psychiatric help.

True, some owners just seemed way too "reality tv" on The Profit IMO, like being so careless/confrontational to extremes. I guess it's the same thing with "Undercover Boss" a bit, but more with the employees on that show. Undercover Boss got old for me real quick too, because it always goes the same: have a few employees share their stories of hardship while supposedly not recognizing this is the public face to the company (seems legit at times, but I dunno about others lol), owner listens, owner ends up giving these employees financial help etc.
 
Undercover Boss sucked. As did all of its international derivations.

If you're into this kind of garbage - watch Bar Rescue. The guy drops pseudoscience about measurements, pour sizes and sociology behind running ideal bars, if nothing else.
 
True, some owners just seemed way too "reality tv" on The Profit IMO, like being so careless/confrontational to extremes.

If you spend some time with B&M crowd you realize that a lot of people have issues with their fucking egos and make totally retarded decisions based on emotions.
A lot of the stuff is 'staged' or exaggerated to entertain the viewers, but I would say that the core is true.

You guys remember the Brooklyn Burger episode btw? Shit apparently hit the fan