"Take it or leave it" — When Shark Tank's Robert Herjavec tried negotiating a deal with Paparazzi Proposals

James Ambler appeared on Shark Tank season 5, episode 8, which aired on November 8, 2013. The entrepreneur sought $250,000 in exchange for 20% of his company, Paparazzi Proposals, a pre-engagement photography service. Sharks started negotiating deals with the founder, initiating a bidding war. Among them was Robert Herjavec, who presented an offer and gave James an ultimatum.

"I'm not good at playing second fiddle. I thought I made you a very fair offer when these guys didn't give you the value you deserve today. Take it or leave it," Robert said.

When James asked Robert to wait so he could analyze the other offer in front of him, the Shark Tank investor removed himself from consideration, saying, "I'm out." James ultimately shook hands with Kevin O'Leary and Lori Greiner who presented him with a joint offer.

Despite accepting Lori and Kevin's offer, James did not sign the final deal and decided to continue growing his business on his own. Since its appearance on the reality show, Paparazzi Proposals has expanded and included more locations in their service. As of 2023, the company offers to travel anywhere with an additional fee and arrange photographers within 24 hours.

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"I would want a lot bigger piece of the pie" — Shark Tank investor Lori Greiner sought 50% of Paparazzi Proposals

While demonstrating the objective of Paparazzi Proposals, James, a professional paparazzi, revealed that the business idea was hatched after he proposed to his wife. He realized it would have been nice to have someone capture the moment he went down on one knee.

After doing some market research, James discovered that there were not any platforms or services that provided photographers for such special occasions. As a result, in June 2011, he launched Paparazzi Proposals and spent two years "marketing and branding this unique company in America."

"Which one of you Sharks will marry Paparazzi Proposals?" he asked.

After his presentation, James revealed he needed help from the Shark Tank investors to expand into other cities and to market his business. He had been advertising his service through jewelers, who would familiarize customers with the photography service through a kick-back program.

When James said he wanted to get into Kay's Jewelry and Jarrod's, Mark Cuban advised him not to since it would create an overwhelming and unmanageable demand. The Shark Tank investor believed James should focus on New York instead of rushing to expand into other locations. With that, he removed himself from consideration.

Barbara Corcoran followed suit and backed out of presenting an offer, saying:

"I can't imagine making money on this business as an outsider coming in."

Kevin also bowed out, voicing concern over the company's $2.25 million valuation. Like Kevin, Lori disagreed with the valuation, convinced Paparazzi Proposals did not need the investment. However, since she liked the model, she decided to make him an offer.

"For me, to give you $250,000, I would want a lot bigger piece of the pie because I feel like I could show you how to take this business in quickly, get it off the ground without needing a big staff," she said.

Consequently, Lori asked James for 50% of his company in exchange for the investment. Upon hearing Lori's deal, Kevin re-entered the discussion, wishing to partner with the investor. Together they offered $50,000 for 33% equity in the company with $200,000 as a loan.

Robert presented James with a similarly structured deal, offering $100,000 for 33% equity and a $150,000 loan as needed to expand the business. When James asked the Shark Tank investor to give him time to weigh his options, he backed out.

After some thought, James asked Lori and Kevin to lower their equity ask to 30%. Once they agreed, the entrepreneur shook hands with the investors and closed the deal.

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Shark Tank season 16 releases new episodes every Friday at 8 pm ET exclusively on ABC.