"Do it as preferred stock" — When Shark Tank's Lori Greiner signed a deal with Kettle Gryp 

In Shark Tank Season 13, Episode 14, entrepreneurs Daniel Sheppard and Andrew Martin revealed the Kettle Gryp, a unique gadget that converts regular dumbbells into kettlebells, providing a versatile and space-saving alternative for fitness lovers. Seeking a $300,000 investment for 10% equity, they dazzled the sharks with the simplicity of their product and significant sales figures, reporting $3.6 million in lifetime sales.

Though all the sharks present for the pitch showed their interest, Lori Greiner, attracted by the product's potential and the founders' success, presented an innovative transaction structure. She offered $300,000 for 20% interest in the form of preferred shares, assuring that she would get payouts before the other shareholders. Following negotiations, Greiner agreed to a 15% equity investment under the preferred stock scheme, securing the partnership.

Greiner's strategic move emphasizes her agility and mastery of investment structures, demonstrating how personalized financial arrangements can align the interests of investors and entrepreneurs.

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Shark Tank's Lori Greiner made a 'creative offer' to Kettle Gryp on season 13 episode 14

Kettle Gryp pitch

In episode 14 of Shark Tank season 13, the founders of Kettle Gryp, Andrew Martin, and Daniel Sheppard entered the tank with an ask for $300,000 in exchange for 10% equity. They pitched their unique product, which can turn any dumbbell into a kettlebell, by just attaching an orange plastic grip.

As the founders pitched their company, they talked about how they were able to maintain the quality of the grip for $6.57 per unit in their manufacturing unit in San Diego. They further revealed how each product sells for $34.99, making their profit margin $81.

As for the sales, in 2018, the company's sales were $391,000, which was increased to $590,00 in 2019. Following that year, their revenue reached new heights as they hit $1.9 million. The company's projected sales for 2021 were $1 million.

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Lori Greiner makes counteroffer

Impressed by the yearly sales, Lori Greiner made an interesting offer to Kettle Gryp. Though their ask was for $300,000 for 10%, Shark Tank's investor quoted her offer,

"I'm sitting here thinking I'm just blown away at your sales to much broader market internationally. I'm going to give you a creative offer. I'll give you the $300,000 for 20% but I would like to do it as preferred stock, which means that I would get distribution first whenever there's profits that are paid out."

Instead of simply countering with a 20% share, Greiner added that she would want to have preferred stock. She further explained how every time the company makes any profit, she would want to be the first one to get her share.

Her offer came as a surprise to the other Shark Tank investors as well as the founders. The entrepreneurs decided to make another counteroffer. Though they agreed to offer preferred stocks, they wished to give away 15% of their company's equity.

After considering and evaluating the offer, Lori Greiner accepted the counter and signed a cheque for $300,000.

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You can watch Shark Tank's episode 14 of season 13 on ABC.