Legacy Shave's net worth after Shark Tank: Deal details and growth
When Mike Gutow appeared on Shark Tank, he had one thing in mind: to fulfil his dad's dying wish by bagging a deal for their company, Legacy Shave. Not only did his heartwarming story move the Sharks to tears, but he also scored big. Legacy Shave's net worth skyrocketed days after the show.
I cannot wait to tell my mom and brother that one of the Sharks has agreed to invest in our company. As a family, we are ready to take that next step, and I know the outcome will be greater than we ever imagined.
Source: UGC
TABLE OF CONTENTS
Key takeaways
- The Gutow family had reportedly invested $400,000 into the company before seeking the Sharks' support.
- Lori Greiner initially offered to buy the company for $1 million and give Mike a 3% royalty on the net sales for life.
- A single Legacy Shave Brush retails at $19.95.
Legacy Shave's profile summary
| Founders | Mike and Dave Gutow |
| Headquarters | Royal Oak, Michigan, USA |
| Shark Tank appearance | Season 14, Episode 7 |
| Air date | 18 November 2022 |
| Asked for | $300,000 for a 10% equity |
| Final deal | $700,000 for a 95% equity |
| Shark | Lori Greiner |
| Social media | InstagramX (Twitter)Facebook |
Legacy Shave's net worth after Shark Tank is a testament to the company's thriving ventures
When Mike appeared on the business reality TV series Legacy Shave was on the verge of bankruptcy. The company recorded $70,000 in revenue in 2018.
In 2019 and 2020, the sales grew substantially to $370,000 and $390,000, respectively, but dropped to $96,000 in 2021 and $42,000 in 2022. Nonetheless, things turned around after the Shark Tank appearance.
Source: Original
According to Geeks Around Globe, the company is worth $7 million today. Legacy Shave's annual revenue is estimated at $1.9 million. Lori Greiner has reportedly amassed about $5.7 million from her investment in the company.
Mike's late dad left behind a note urging him and his brother to launch the company
Legacy Shave is a line of shaving brushes that easily attach to any shaving cream can. The brush exfoliates the skin while the cream lathers on your face to minimize wastage. According to the company's website:
The Legacy Shave Brushes combine traditional technology of shaving brushes with modern shaving cream cans.
After graduating from university, Mike and his brother Dave joined their father in creating these brushes. With a target of 3,000 units, the brothers only assembled 200 before they lost interest in the venture.
However, 17 years later, their father succumbed to cancer, and they discovered that he had done the remaining 2,800 units while undergoing chemotherapy. He left a note saying:
Life is too short to wait. Take the shot!
Source: Instagram
The Legacy Shave Shark Tank deal explained
When Mike appeared on the show, he demonstrated how the Evolution Brush is used and briefly explained the company's history.
I am seeking $300,000 for a 10% stake in our company, which has patented technology to disrupt the $50 billion shaving industry.
In addition, he revealed that the production cost for each brush is $5.39. A pack of 10 retails at $149.95.
Lori Greiner was the only Shark who took a chance at Legacy Shave
After Mike Gutow's presentation, four Shark Tank's cast passed on the opportunity, each citing specific concerns.
Barbara Corcoran said:
Although you are a good salesperson, you are a poor communicator. Therefore, I do not think we would be great partners.
Renowned businessman Mark Cuban bowed out due to the business' declining sales, saying:
You being out of money makes this unfit for me. But I wish you all the best.
Kevin O'Leary then followed suit:
The shaving industry you are in is crowded. For that reason, I am out.
Source: Getty Images
However, in a twist of events, Lori Greiner offered to buy the company for $1 million, which Mike countered. Ultimately, the duo agreed on a $700,000 deal for 95% of the company. Mike and his brother retained a 5% equity in the company.
The company experienced supply challenges through early 2023
Legacy Shave experienced a significant increase in its sales after the Shark Tank episode aired in November 2022. Within the first four days of the company's QVC broadcast, it sold its entire inventory.
This greatly affected its operation as the demand for brushes was extremely high compared to what the company could supply. However, by spring 2023, Legacy Shave had resumed regular shipping operations.
FAQs
Legacy Shave's Evolution brushes stimulate hair follicles for the cleanest and coolest shave. Below are some frequently asked questions about the company:
Is Legacy Shave still in business?
The company's deal with Lori on Shark Tank was a game changer. Sales increased significantly, and the consumer reach expanded.
Did Legacy Shave sell to Lori?
Mike Gutow did not sell the company to the Shark. He gave up $300,000 in Lori's initial offer to ensure his family still has a 5% equity in Legacy Shave.
Source: Instagram
Did Legacy Shave succeed?
With Lori's guidance, the company launched their products into major retail chains and online platforms.
How rich is Lori from Shark Tank?
According to Celebrity Net Worth, the American entrepreneur is worth $150 million. She boasts hundreds of inventions and holds over 120 patents.
Legacy Shave's net worth after Shark Tank is in the millions, despite the company being on the verge of closure before the show. Today, the company's products are available on its website and at reasonable prices on Amazon.
READ ALSO: Namita Thapar's net worth now: Inside the Shark's luxury lifestyle
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Namita has built an impressive career in the pharmaceutical industry, contributing significantly to her family's billion-dollar business. From her luxurious lifestyle to her role as a prominent investor, Namita's success story serves as an inspiration for many in the business world.
Source: Briefly News
