"You don't have to do that"- When Lori bought 95% of Legacy Shave in Shark Tank

Legacy Shave secured a $700,000 investment on Shark Tank season 14 episode 7. Mike Gutow presented his Evolution Shave Brush attachment for shaving cream cans, seeking $300,000 for 10% equity. The deal changed dramatically when Lori Greiner offered $1 million for full ownership with a 3% lifetime royalty.

During negotiations, Mike requested to retain 5% equity in his company. After Mark Cuban referred to this request as "schmuck insurance," Lori adjusted her terms.

"Technically, you don't have to do that. If you want schmuck insurance, so to speak, then I would come down on the money I'm giving you because now you're retaining five percent of your company," Lori stated.

This offer was accepted, leading to the final agreement of $700,000 for 95% ownership. The shaving system retails $24.95 for a complete unit with cream and $19.95 for the brush attachment alone, manufactured at $5.39 per unit.

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Shark Tank's Legacy Shave deal adjusted from full buyout to 95% ownership

Mike and Dave Gutow created shaving innovation after finishing their studies at Michigan State University. The brothers made their first order of 3,000 units but managed to put together only 200 before pausing the project. Following their father's passing, they found the remaining 2,800 units fully assembled in his basement.

A handwritten note from their father encouraged them to move forward with the business, stating, "Don't wait, life's short, take the shot." The sales history revealed significant fluctuations. Legacy Shave began with $70,000 in revenue in 2018. Sales grew substantially to $370,000 in 2019, reaching their peak at $390,000 in 2020. However, numbers dropped to $96,000 in 2021.

By their Shark Tank appearance in 2022, sales had decreased to $42,000, though they held a pending purchase order worth $63,000. The Gutow family had invested $400,000 into the venture before seeking the Sharks' support.

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Shark responses

Four Shark Tank investors passed on the opportunity, each citing specific concerns. Barbara Corcoran mentioned issues with Mike's presentation structure and overall communication approach. Mark Cuban appreciated the product's innovative aspects but expressed worry about the company's financial status.

Kevin O'Leary, while moved by the family story, pointed out the challenges in competing against established shaving industry leaders. Robert Herjavec acknowledged the product's potential but saw multiple business obstacles ahead.

Lori Greiner focused on the product's core strengths when evaluating Legacy Shave. Her first proposal was $1 million for complete ownership, including a 3% lifetime royalty structure for Mike. The latter asked to keep a small ownership stake in Legacy Shave rather than selling the entire company. This request prompted Mark Cuban to call it "schmuck insurance."

In response, Lori reduced the cash payment to $700,000 while allowing Mike to maintain 5% equity in the business. Mike accepted these terms, finalizing the agreement at $700,000 for 95% ownership.

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Aftermath and results

Legacy Shave experienced immediate success after the episode aired in November 2022. The company appeared on QVC within four days of their broadcast and sold out their entire inventory, per Shark Tank Blog. This sudden demand created supply challenges through early 2023. By spring 2023, Legacy Shave had resolved its inventory issues and resumed regular shipping operations.

The company expanded its product line in June 2023, introducing a Father's Day gift package. This new offering included their signature brush, shaving cream, a premium razor, and shaving balm.

Legacy Shave's growth continued through 2024, generating $1.9 million in revenue and establishing a net worth of $1 million. The Evolution Shave Brush maintains availability through the company website and Amazon, with expanded product offerings in their grooming line.

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Fans can watch new episodes of Shark Tank on the ABC network.