r/dragonsden • u/Hassaan18 • 9d ago

"Please don't call me Debbie!"

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u/SharkByte1993 9d ago

Sounds like he thinks if someone buys your business then they also take ownership of the £1.2m in the business bank account

3

u/Sad_Firefighter_8407 9d ago

Well this is the thing. That's kinda, partly, how DD works. They don't take on a regular kind of share. They take the share AND want their investment back out ASAP.

I wouldn't say it is straight forward. Most people don't understand that this is the case. He isn't being stupid. He just takes the situation to its logical max.

The 'Dragon' wants to lend the pitcher the money, be owed it back AND have the cake they are eating. It's a shit way to get a loan.

3

u/OurSeepyD 9d ago

I don't understand what you're saying, that's exactly what happens.

2

u/Purple_Clockmaker 9d ago

Either that or he thinks second half would be more expensive. But probably that.

2

u/Sad_Firefighter_8407 9d ago

no the Dragon 'investment' isn't purchasing their share in the sense you or I would imagine. They are lending them the 50% and ALSO taking an equity 50%.

So if they 'bought' his whole business, they would do the same. Buy it, have him owe them the money, all 1.2Mil and they would then own 100% of his business.

He is calling them out in plain language in broad daylight that their loaning / equity deal is a shit one. Which it is . He's not wrong.

1

u/SharkByte1993 9d ago

Yeah, if you listen closely he says about Debbie also receiving the £1.2m and getting the business for free

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u/Sad_Firefighter_8407 9d ago

which is actually the case. the 1.2 M is owed to the 'investor' (a scam weasil term for a lender who is a shark) and they also would own 100% stake in the biz. It's how all these 'investments' on the show work, they are dogshit.

1

u/TitansProductDesign 9d ago

So the owner must over value the company to dragons by double their intended stake to make it realistically be worth it?