The TV show Shark Tank shows aspiring entrepreneur-contestants as they make business presentations to a panel of "shark" investors, who then choose whether or not to invest.

For this Discussion, you are required to watch Shark Tank and complete the worksheet below for one of the presentations. Shark Tank episodes appear regularly on CNBC (nightly) and ABC. Check your local TV listings.

Also, you can access prior Shark Tank episodes on youtube.

The question: If you had $20 million in cash in a bank account, would you invest in the deal presented in the Shark Tank. Explain why or why not?

Shark Tank Worksheet

Season & Episode (if seen on TV):

Episode Name (if seen on YouTube):

Company Name:

Entrepreneur's Proposed Starting Offer & Valuation of the Business: (e.g $200,000 for 20% equity ownership = $1 million business valuation. FYI, here is how to determine business valuation. Business Valuation = Investment Amount divided by Equity %. So in this case $200,000 / 20% = $1,000,000 business valuation)

Shark's Offer(s) & Valuation: (e.g $100,000 for 20% equity ownership = $500,000 business valuation)

Counter Offer(s): (if so, what were they?)

What does the product sell for? $___________

-

What is the cost to make it? $___________

=

Profit Margin $___________

What is the business and what do they do? Provide the business plan details:

What are they planning on doing with the money the sharks give them? (i.e. Marketing, hiring, inventory, capacity planning, business analytics)

What are the responses of the Sharks? Do you agree?

How many competitors do you think exist for this product? Give your best estimate.

The question: If you had $20 million in cash, would you invest in the deal presented in the Shark Tank. Explain why or why not?

1. Identify one economic theory or principle that applies to this deal?

2. Explain its relevance and how it applies.