Those guys were ready to be devoured! I don't believe that those guys didn't know that the bank was getting ready to call in their loan...They were pretty ballsy in trying to get Marcus to pay $5 million dollars for half of their business. Marcus got the last laugh when they had to sell their Brooklyn Burger business to him for $200,000...
shareeither they're too nice and naive to know their own finance or something else
having a/r that's months even year old should worry you from the beginning
but the worst part of this episode was nothing get resolved,
it just ended abruptly
it's like the cameraman lost his camera so they've to finished shooting
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Actually, the check isn't cashed until the deal is fully consummated. The check-writing scene is for TV. But Marcus does actually spend money on the business to a certain extent, but the partnership check isn't good to cash until the deal is actually done.
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No doubt they get compensated. But just like the old saying goes "there's no such thing as bad publicity". I have no doubt that no matter how badly these business look on TV, they all experience a sales bump after the show airs.
Same with Kitchen Nightmares, Bar Rescue, Tattoo Rescue, Mystery Diners, Tabatha Takes Over, Restaurant Stakeout, Restaurant Rescue, Restaurant Impossible, and others. If you follow up with the businesses several months down the road, you find that a large percentage (approximately 70% end up going under). These businesses are usually in trouble and these TV appearances (with the exception of Mystery Diners which features "problems" that are completely invented for the show out of whole cloth) are their last ditch to keep afloat.
So yeah, some of it is manufactured, but there's no doubt some of it is for real. I know that the offers Marcus makes are for real.
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Of COURSE he makes the offers before the financials. This is reality TV, not reality. It's mostly TV, with some reality thrown in.
shareHe constantly reminds us, that when he shells out 500k, then he owns the stuff for 500k. So they get a deal, like a new house or they buy machinery with his money, he owns that stuff. If everything is clearly ok, then in the finalization, he gets the share of the company in writing - and his investments are integrated into the financials.
In the episode with the flower shop, he got a collateral on the house where the flowershop resided. So there was never a risk for him. If they wouldn't pay him back, he would have sold the house, took his take and they would had to move somewhere else.
You are correct about the process of buying into a business but that would make for boring TV and probably a lot less deals.
I also wonder who actually puts up the money though Marcus has sued several owners attempting to get money lost because the owners do something under-handed.
I listened to Marcus Lemonis' interview with james Altucher
He says in that interview, that the check is real and nothing is scripted
http://podbay.fm/show/794030859/e/1413297398?autostart=1
I have noticed a couple of instances where words were inserted to Marcus narration that are clearly not his voice
Like in the Sweet Pete's episode, when he tells the lazy partner that he deoesnt deserve the business
Here is the interview again....its very educational. I have learnt alot from the show
http://podbay.fm/show/794030859/e/1413297398?autostart=1
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Yeah, keep telling yourself it's scripted. That's why there are the posts on the Swanson's Fish market website from the daughter. That's why Lemonis is suing A Stein for breach of contract. That's why Donna Johnson is now suing the company for $3 million.
shareThe lawsuits are scripted.
Even Marcus is an actor. Everyone, everywhere is scripted and nothing is real.
I hear there were explosives in 7 WTC and a missile brought down Flight 93 and a plane didn't hit the Pentagon.
Do follow episode on A Stein i want find out how they improved
For people who have inherited a business like that, many lack some real world important skills needed by business people. They don't understand what made their business a success, and they don't grasp that they need to change and do something different over time in order to stay in business. When they get into trouble, all they know is to get more loans. The banks will continue to loan you enough money to hang yourself. The banks are in the business of charging you interest and have carefully evaluated the company's assets and other collateral to know if there is a default, they will still make out OK. There are no different than people who when they max out one credit card, they get another credit card, and continue to spend.
It was really sad they were still supplying businesses with their products even though they stopped paying them. They totally failed at simple debt collection from people. They weren't aggressive about it at all. Making phone calls and even seeing those in debt in person to ask for any kind of money would have been a great improvement.
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