The Shark Tank Deal Explained (and Where the Company Is Now)

When Mike Gutow appeared Shark Tank to make a deal for his company, Legacy Shave, his moving story made the judges cry and he scored big. Based on Japanese format Dragon's Lair, Shark Tank is an Emmy-winning reality show where aspiring inventors pitch their business ideas to a panel of successful entrepreneurs called the Sharks. These sharks include Mark Cuban, Lori Greiner, Kevin O'Leary, Barbara Corcoran, and Robert Herjavec, and they aren't afraid to beat around the bush if they don't like a product or business plan.

But what does Shark Tank convincing are competitors who go to the show to make your dreams come true. Many of these ambitious entrepreneurs come from humble beginnings and have invested a lot of work and money into their products, but they need the Sharks' help to take them to the next level. Over the course of 16 seasons, hundreds of contestants made deals, and many Shark Tank The products became a great success. Legacy Shave is one of those success stories, but its compelling story is what made its episode so memorable.

Legacy Shave is a brush that provides “the best shaving experience”

Mike Gatow's late father left a note urging him to stay with the company

Legacy Shave is a shaving brush that can be attached to any shaving cream can. The brush helps exfoliate the skin while the shaving cream lathers on the face, avoiding product waste. It gives the luxurious feeling of shaving in a barbershop and reminds you of the ancient method of shaving.

Mike Gatow appeared with Legacy Shave in Shark Tank season 14, episode 7. What made your product a fan favorite is your emotional story. Mike and his brother developed the product with their father, ordering 3,000 units. However, the boys soon lost interest after gathering just 200 and suspended the business. Seventeen years later, his father sadly died of cancer. When Gatow and his brother cleaned out his house, they discovered that he had assembled all 3,000 units of his product during chemotherapy. He left a note saying: “Don't wait. Life is short. Take the photo.”

Legacy Shave Shark Tank Deal Explained

Lori gave Mike Gatow $700,000 for 95% of the company

Mike continued Shark Tank hoping to get $300,000 for 10% of his company. After giving a great presentation, the Sharks were impressed and loved that Mike had a patent. But it was his story that won everyone over. It even made the normally tough Kevin cry. However, the the product's lifetime sales figures were concerning to the panel. Although Mike had made over a million dollars in sales and moved 100,000 units, sales had been declining and the company was almost completely out of money. Mark Cuban even told him, “Trend is not your friend.“

The panel members started to give up. Mark didn't like the fact that Mike was broke, Kevin had no interest in the shaving industry, and Robert also had a lot of concerns. But Lori liked the fact that the nozzle could work with many other products and thought her experience in consumer markets could help the product.

Lori volunteered to buy the company for $1 million and give Mike a three percent royalty on net sales for life. Mike countered and asked to take five percent of the company. Lori accepted, but was only willing to donate $700,000 for 95% of the company. Mike agreed and accepted the deal.

Where is Legacy Shave now

The company is now worth $6 million

Legacy Shaving it still exists today and is thriving. The company placed its products on QVC four days after its Shark Tank episode and completely out of stock. The company's net worth is $6 million in 2024, and its annual revenue is about $1.9 million (via Geeks around the world).

Lori Greiner performed well on her 700K investment and made around US$5.7 million with the product. Legacy Shave has secured a partnership with Dollar Shave Club in 2023, one of the biggest players in the shaving industry. This was a very successful collaboration and contributed to significant increases in sales.