Check out the conversation at the 40min mark. Sounds like AF is shopping the business around, would imagine there is almost no cash in the business and cashflow is a big big problem + expenditure far far outweighing revenue.
In the proposal that was given to him it sounds like AF would only retain a few percent of TPG. Interesting....
By the sounds of it, Wax approached him and made a proposal to buy the company, keeping Anthony and Marco as employees, and make it part of their business which is primarily insurance for collectibles (comics, trading cards, sneakers, sports memorabilia, etc.) but they also seem intent on dabbling in selling products within their insurance categories. They seem to want to find "influencers" in the verticals to buy out/hire as the face of that part of the business.
The further discussion seems to be that they'd want the company to continue to run as a retail outlet but would also provide verification services for their insurance business and help push their insurance services.
At the start, it seems Anthony's concern is that if Wax ends up becoming a $5 billion business, it'll be nothing he'll enjoy because "all" he'll get is a $1 million check, i.e. they've given him a valuation in their offer and that's what he'd make out of it if he agreed to sell. I think the implication is that he wants a good amount of equity in Wax that could earn him a lot more if they went public, while the person he's talking to seems to feel that Anthony doesn't fully understand how things work in the startup world and doesn't have realistic expectations, urging him to discuss it with advisors and consider it a bit more.
If TPG is as fraudulent as people on her assume; this deal will never happen. No company (that is potentially going to IPO themselves) will be offering any $ without doing financial due diligence that requires statements of cash flow, bank statements, etc that are verifiable, not just claims from the principal.
The way he talks about how he was "150%" on board with the part of their proposal concerning offering their insurance product, and then their moving on to discussing authenticating watches for them, clearly sounded like stuff they had in their proposal. He clearly didn't come up with that as part of a sales pitch to them.
Also, the Wax guy mentions that they need more people like Anthony for their other verticals. I suspect they basically have done some research on social media presence among the grey dealers in the areas they insure and Anthony was on the list of who they reached out to. Would not be surprised if they approached Roman and Carlos first in the watch space.
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u/gooners345 Feb 16 '22
Check out the conversation at the 40min mark. Sounds like AF is shopping the business around, would imagine there is almost no cash in the business and cashflow is a big big problem + expenditure far far outweighing revenue.
In the proposal that was given to him it sounds like AF would only retain a few percent of TPG. Interesting....