|Brief Description||An established website that sells accessories for vehicles – vans, caravans, pick up trucks, motorhomes, etc.|
Adam Weaver strives to make as much money as he can as quickly as possible, but the Dragons need him to slow down and delve deeper before deciding whether or not his idea will make a fast buck for everyone.
Adam's pitch starts by taking the Dragons hastily through some impressively healthy figures based on company turnover, net profit and future profit predictions.
The floor is open for questions and James Cann is quick to delve deeper into the company figures and in a Den twist Adam reveals company debtors including two bank loans; the first where Adam asked for £140,000 to be lent £80,000 and a second where he asked for £250,000 and was lent £150,000.
Peter shows his modesty
Theo Paphitis scrutinises the figures further and Adam admits that the company is starved of working capital needed for stock.
Adam's slap dash approach to bank loans has sounded alarm bells for Deborah Meaden and she goes for the jugular asking why Adam asked for the loans at a specific amount that he didn't need.
Adam responds that he asked for the maximum he thought the bank would lend him, which meets Duncan Bannatyne's approval as he defends the entrepreneur and explains his own experience of the logic of borrowing money to finance new stock.
With a different approach to business Deborah wasn't satisfied by Adam's answer and after a fraught exchange Deborah is out.
Theo follows suit, reasoning that Adam's business requires a lot of time and a huge amount of cash for too little return.
Peter Jones asks more questions about the company’s profitability and approach. 50% profit is made in online sales and the rest from direct market and the company's sale team.
Then in a change of fortune Duncan swoops in and makes Adam an offer of the full value of £50,000 but for 20% of the company, four times the percentage originally on offer.
Peter then makes an offer of £50,000 but for 25% equity claiming not to have to compete with Duncan's offer as this is his field of expertise. It's a hard sell from Peter.
James can't compete in this instance and bows out.
With two rival Dragons vying for a deal Adam is unsure of which way to turn. As Peter tries to sway Adam's decision with an eloquent pitch, Adam takes the dramatic and instinctive decision to shake hands on the deal with Duncan.
Duncan Bannatyne: £50,000 for a 20% stake in Proppa
Last updated: 6th September 2010
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