Shaving is an integral need that all men have and to make that experience simple and streamlined, Mike Gutow came up with the basis of his company, Legacy Shave.
The main objective of this company is to make shaving comfortable and hassle-free, which is why they sell unique dispensers that go on top of the shaving foam containers and dispense the foam directly on the beard with a single pump.
In this guide, we will take a look at where Legacy Shave stands today and the kind of progress they have made until now.
Shark Tank Legacy Shave Update
- Entrepreneur – Mike Gutow
- Business – Dispensers for shaving foam bottles, men’s grooming items
- Ask – $300,000 for 10%
- Result – $750,000 for 95%
- Sharks – Lori Greiner
Mike Gutow took his brand on Shark Tank with hopes to acquire good funding and investment that he could further use to expand his business and bring in more products that the customers would benefit from.
During his pitch, Mike shared how this company came to be and shared the tragic yet heartfelt story of how his father was the one that pushed Mike to pursue this business idea before he passed away. Listening to the story and being quite touched, the Sharks were ready to offer their counteroffer.
Mike asked for $300,000 for 10% equity in the company. He further explained the pricing, saying that the company sells a standard dispenser for $24.99 while it costs them $5.40 to manufacture a single piece.
In the five years that they have been in business, Legacy Shave has crossed the $1 million revenue mark and has sold over $100,000 units, which was quite impressive, to say the least. Seeing the potential in the business, Sharks also questioned the risks of counterfeit products, to which Mike clarified that they have a patent for the dispenser’s design and usage.
The first two sharks that dropped out of the deal were Barbara and Mike. They couldn’t see themselves being helpful towards the business’ growth.
Following the first two sharks, Kevin and Robert also backed out from making a deal because they thought that the competition in the industry, they were operating in was already too high. There were already a lot of men’s grooming companies out there.
Lori Greiner changed the game entirely for Mike, offering $1 million to buy out the entire company and 3% in royalty per sale. Mike was overwhelmed by the offer but said that due to the reason that the company was started due to his father’s dreams, Mike wanted to have some part in the company.
Listening to that, Lori offered $750,000 for 95% of the company and 3% of the royalty for every sale made. To this, Mike readily accepted the offer. The deal was finalized with Lori and the company is thriving after their Shark Tank appearance.
We don’t have any current insights regarding the business’ revenue and the kind of return they have generated from their recent sales yet, so that remains a mystery.