Daniel, founder of SRG Global, water transport and tourism company, is requesting for an equity investment of 70 million in exchange for 10% equity...But his debt profile doesn't leave the Lions feeling confident. #ultimalionsden
The Lion's Den is a Real Deal. Programs like this should be encouraged by all means. Who wants to be a millionaire and other programs that build Human capacity should be encouraged. .....but, I will vote and advocate that shows like BBNaija be taken off the Nigerian Media Space. wasting lives and resources to enrich very few with obscenity and immorality.
I will galdly do it. That offer not just a business offer but a Life saver abd hope giver. I beleive the Lion saw beyond the business but chose to lend a hand
@@chukzfegorsonspeaks The business is lucrative he just need a little review on the structure and that deal was a great one for the lion simply put, he bought time with his money I believe other lion's focused more on the ugly side rather than pay attention to the brighter side of he business if they could get around the debt. Mr Dan is the real deal with 2 years he'll get his 70m back and still own 50% of the company that's so huge a deal, so huge.
Omo this Lion Dan is so smart. He owns 50% of the company for 20m and he will still be paid back his 50m loan with 40% interest. So he will get his 70m back but still own 50% of this company. The brilliance of this deal and the sheer fact that he thought of this in minutes is mind blowing. All hail boss!!! Love it
But then, what will the 20million do in the business? He said, a boat cost 40-50million and he will repair the dilapidated one with the remain cash.... Don't you think he will fall back to borrowing in other to pay Dan his money? Just thinking
He wont get 70m in cash back bro.. if at all there is that much liquidity lying around then it will be going into improving the company so his 50% shares can have some value.. he is a bad company owner, he needs a good manager and risk assessment officers.. he can literally pay for one easily.. his accounts looks messy and starting to resemble a ponzi scheme, it might land him in jail at the end if a pro doesnt intervene
The investor is a life saver at this point and a good negotiator too.The debt is killing and having him take 50% ownership is tantamount to taking 50 % risk .He may eventually buy him out of the business if he finds it difficult to pay the loan at 40% interest rate
I love this.. one man still believed.. despite all the negative numbers, one man saw the potential in the business.. not the numbers..the business itself... Mr. Dan, I hail oo
Servicing debt at 90% is such a horrendous mistake, you have to be in such a tight spot to accept that kinda deal in the first place . Anyways clearing it and starting all over again will help him with some traction , moreover he didn’t really need a new boat, he need more revenue to clear debt. Now he can grow organically . Weldone lions
@@BILLIONAIREGH regardless. Just because they are willing to give is not a reason to accept 90%. Great business idea, just needs some expert’s handling.
Amazing! I have learnt so much about business just watching your shows, than I probably would have in months! A MILLION THANKS TO THE HOSTS, ORGANIZERS OF SPONSORS OF LIONS' DEN.
@@olaniyiexplore6420 nope. 96% with two years left is gonna be a steep one. At least refinancing to 40% for 50% equity allows him to have more of his revenue to reinvest and increase profit. It's still a gamble but not as sure sudden death as his initial situation
Temporary reprieve. To last in business, 'low cost' money or capital is the way to go . That means percentage of indebtedness should be near zero or zero. This is true for both personal and business finance. 40% is still a princely sum. (Ask anyone who has ever had to service a loan. ) The major win I see for him here is the mentorship, and a little more time to turn things around. Wish him all the best.
This entrepreneur is into the Lions to invest in young bold and dynamic businessmen. I love him to bits. Very futuristic and legacy investor. Kudos to him.
Seriously, i thought about that too… The investor mad an intelligent decision. 40% interest will get him his investment while he still remain a big part of the company.
It also means he bought 50% of the business for 20million. He is a super good investor. Come to think of it, does it mean the business is evaluated at 40million?
@@olatola5556 Well, only 12m was injected in the business to begin with but if the revenue growth trajectory is maintained, definitely, valuation would increase.
@@einsteinesegbue918 I agree with you, with such huge debt 96%...common that huge thou maybe he actually believe in miracles and trust me, miracle happened.
Daniel is intelligent, i have met him on many occassions innthe course of doing business. He is smart, only that i didn't know this part of him been in debt. I believe he will bounce back. Thanks to the Lion that gave him a hand and saw beyond his mistakes/errors.
The main issue is the debt and the HUGE interest rate... but just like Dan said no matter how bad it looks its worth something and if it is worth something then you try.
Shows like this should be widely encouraged across our media sphere, while the likes of BBNaija be shoved off our view. Organizers should pls work towards promoting this show across boards. The youths need to align with this kind of program for Nigeria to move forward. Thank You.
What Daniel just did was simply give him 70 million and asked him to pay 70 million and still get half of the company. Daniel is smart, he's getting back his money, whether the company thrives or not. wow!
@@ty9537 I do understand that, but with this kind of debt and an offer to knock it off with extra money to push again? I wouldn't need to make a call. What if the adviser asked him to reject it?
Lol Dan reminds me of Kelvin on Shark Tank, guy's a beast with negotiations. Likes to get the best deals.🤝 This is why you don't use debt to start a company, you use debt to scale. 96% cost of money is absurd! He should go for refinancing and hopefully get a better deal.
I too yelled "what?" and then thought he probably didn't understand the question! Never heard such an interest rate in my life before. Still, I can't shake the feeling he misunderstood the question and gave a misleading response.
He actually understood the question. Those are the kind of extreme interest rates you get when you use those “Quick loan” financial services. They are the modern day loan sharks. Their rates are crippling. He’s lucky to have gotten this deal from Mr Dan
I was wondering what sort of desperation will make a business man take out such loans. It's outrageous. 96% interest. That in my opinion is the fastest way to kill a business.
It’s accumulated debt. Microfinance typically charge 7% a month. That’s 84% already. Since he’s not repaying principal, they kept rolling the debt over. Microfinance debt is not designed for a company like this. It’s for market women. He used it to go buy boats.
Dan's deal is somewhat better. However, I expected the man to propose a buyback clause where he will be able to have first right of refusal if Mr Dan seek to liquidate his stake of ownership. I also expected him to propose a 51-49 ownership stake where he's the 51%.
Apart from the fact that he starts most of his financials with "roughly", did he really mean 96% interest on debt or I didn't just hear clearly? Guy spends that much servicing debts and expects to still make his projected margins?
He said 96% and I said what, then thought he did not hear the question Of the opinion he must not have had any choice than to pick up that interest but it's all good he is on a clean slate.
So how does he intend on paying back the 50m at 40% interest rate if he only has 20m to invest? That would only be able to refurbish one boat. In the end, he might end up borrowing to pay Dan and the cycle will start all over again
Well I don't think it works like that, if he can service his debt, then he stands a chance of going into debt again. Sounds funny right? And then remember he mentioned family, friends and a couple sharks. Some of them will not when to get the money back from him at an instance while some will. But business is all about managing long term debts so he will definitely find his way around it. I believe a lot of these lions are also in some debts not because they can stay debt free but because it's better. Debt is tax free, it's depreciates with time especially if it's in a local currency imagine borrowing 50million naira and convert to dollars(not really good though, it's better to buy assets) and wait three years😂
Better use like 3million of that money to set up a “boat Uber service" There's something “off" about people who are comfortable in such debts without a clear path out that I don't fancy. That lion really did u a solid with such an offer.
I don't think he understands the offer... But then it leaves him in a better position than he was before he came. 40% debt servicing will always beat over 90%
So no one picked up on the fact that he just got half of this guys company for free? Smh 🤦🏾♂️. 40% of 50M is 20M. Meaning he’s going to pay back 70M to the investor and he will still own half of his company for 0 naira. Crazyyy
@@theigbotruth all while making profits from the business. If he can’t pay. He has assets to sell to recoup investment which are the two boats that already exists. People are hailing the guy. It’s important to think properly! About everything!
