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Nezar Akeel appeared on Shark Tank Season 13, Episode 9, which aired on December 17, 2021. He sought $500,000 for a 2.5% stake in his company, MAXPRO, which specializes in portable resistance band machines. Like most Sharks, Daymond John was impressed by the business's sales. Consequently, he made an offer but was ignored as Nezar got distracted answering the others.
"I was sitting for 20 minutes asking for an answer," Daymond told Nezar.
The Shark Tank investor had initially offered $500,000 with a $25 royalty per unit until he recouped his capital, after which he would convert to 4% equity. Nezar, caught up in the Sharks' questions, failed to acknowledge Daymond's offer. Even after Daymond prompted him, he continued answering the other panelists, making Daymond wait for a response.
After most of the Sharks backed out of making an offer, Nezar was left with Daymond and Mark Cuban's proposals. The moment Nezar said he wanted to ask Mark a question first, Daymond rescinded his offer. Consequently, the MAXPRO founder shook hands with Mark. However, as of 2023, the deal with him never closed. By 2024, the company grew with an annual revenue of $10 million.
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MAXPRO continues to be in business and is reportedly approaching $40 million in lifetime revenue.
"We have a philosophical disagreement" — Shark Tank panelist Kevin O'Leary refuses to invest in MAXPRO
During his pitch on Shark Tank Season 13, Nezar said he wanted to make exercising fun and accessible. With award-winning MAXPRO's ten-pound portable machine, he could help change people's approach toward fitness. He added that the machine had onboard sensors which relayed detailed workout analytics to the MAXPRO coaching app.
When Nezar sought an investment based on a $20 million valuation, Shark Tank investor Kevin O'Leary asked him to detail his year-to-year sales. He revealed that the company started shipping products in July 2020, and sold products worth $4 million that year. As of 2021, MAXPRO had done over $8 million in sales.
The business owner further explained the versatility of his product, citing the different ways it could be used anywhere. From latching on to doors to trees and fences, MAXPRO was designed to adjust anywhere according to the user's convenience.
Nezar then informed the Shark Tank panelists that the product cost $205 to make, plus $20 in shipping, and was sold for $849. He shared that the business spent approximately $100,000 on marketing monthly. Once the investors started questioning further, Nezar revealed he made a $50,000 profit last year and hoped to break even this year.
He added that he took a revenue-based line of credit at 28% and had over $5 million in inventory. When Lori Greiner asked why he had that much in inventory, Nezar said it was "a bit of a judgement call." He then mentioned that Shaquille O'Neil had partnered with him at an equity of 1.5% which could increase to 5% over four years.
Soon after, Daymond presented Nezar with an offer, but the entrepreneur got distracted answering Lori's question about what he wanted from the Sharks. He explained that he wanted their expertise going into retail and venturing into other units, including military and hotels.
The Shark Tank investors soon became skeptical of MAXPRO's app, wondering if the business needed to spend any money on it. Kevin, in particular, was not fond of the idea. Consequently, he bowed out of making an offer and said:
"We have a philosophical disagreement on the direction. That's my opinion, okay? I'm out."
Soon after, Mark presented Nezar with an offer, seeking 3% of his company and 5% advisory shares like the one given to Shaq for the $500,000. Lori and Robert Herjavec removed themselves from consideration, saying they would have made "steeper" offers than Mark.
After Daymond revoked his offer, Nezar asked Mark if the line of credit could be replaced or if he could help him with inventory. Although Mark did not commit to it, he assured him it was "something on the table." Consequently, the business owner finalized the deal with Mark.
Shark Tank Season 16 airs new episodes every Friday at 8 pm ET only on ABC.
