|Brief Description||Power8 workshop is a power tool set that is the world's first cordless bench top system.|
Christopher is in his element demonstrating his product for the Dragons, but the structure of his company could just be complicated enough to scare them off.
The Dragons crowd round for a look at Christopher's multi-functional four-piece power tool set, whose casing can be used as a portable workbench.
Peter Jones has picked up a tool that, Christopher explains to him, works as housing for a saw, cutter and sander. Peter and Theo Paphitis are very impressed.
James Caan digs into the finances, while Theo wants to know who owns the company and exactly what he'd be investing in. There are several companies selling the product in the UK, Hong Kong and the USA. Christopher does not control all these companies. He is offering a stake in the holding company, based in the British Virgin Islands.
Particularly troubling for Duncan is that the intellectual property rights to the product belong to a Hong Kong company that Christopher doesn't control.
Theo is not sure what he'd be investing in
The complicated business structure is too much for Theo and he declares himself out.
Deborah Meaden and James Caan have similar views, the complex business arrangements put off both Dragons and they bow out.
But Peter says the real value is in Christopher and his products.
He is willing to make an offer of £150,000 for 40% of the holding company on condition that all the rights in the product be transferred to the holding company. After this, he wants Christopher to step back from the business side and get back to inventing.
Christopher, who originally offered 5%, announces that Peter is placing too low a value on his company. Peter, taken aback, says Christopher won't get sales without him, but the inventor sticks to his guns. He is not prepared to give away 40%.
Duncan, after watching the negotiations with Peter, is willing to go partway between their figures. He thinks the holding company is worth £150,000 for 30%. He offers half of this, £75,000 for 15%, under the same conditions as Peter.
Christopher is still not convinced this values his company correctly so Peter offers, if Duncan agrees, to come in at 30% total and to reduce their share to 20% between them when Chris pays back the money.
Christopher turns back to Duncan, secures his agreement and then accepts the offer.
Last updated: 30th August 2010
Missed any action? Watch, read, rate and have your say on the class of 2010.
Other entrepreneurs from this episode:
'What is so astonishing about their pitch is that they didn't even state their USP'
Missed any action? Catch up and find out more about the Online Dragons.
Apply to enter the Dragons' Den.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.