Through artful cutting, “Shark Tank” manages to squeeze in a lot of stressful negotiation into just a few minutes of air time.
But even after a deal is set, entrepreneurs have a long way to go with their sharks before they see any money.
Here’s what happens behind-the-scenes after a successful investment on the show, according to the sharks.
The real deal begins
According to “Inside the Shark Tank” magazine, once the cameras shut off, the sharks move in to put their handshake deal onto paper. Greiner explains they bring in their own teams to investigate entrepreneurs’ claims and dig deeper to determine the best investment scenario, then move ahead from there.
Nothing is set in stone
Kevin O’Leary says entrepreneurs on the show can get excited by the cameras and lights, leading them to overestimate their companies’ abilities. Occasionally, sharks do call off deals entirely if the numbers don’t match up. According to The Cheat Sheet, O’Leary explains, “We go check the facts and they don’t always come out the way they said, and that may be why a deal doesn’t close.”
The sharks move in and set up shop
Sharks tend to manage their new investments aggressively, so a deal could lead to lots of changes at a company. Mark Cuban, for instance, explains that after investing, his team “take over their accounting, website, packaging design, and more.”