boom.boom is a company founded by a husband and wife that believe they have created the equivalent of lip balm or mouth wash but for the nose. boom.boom is a "freshness inhaler" that resembles a lipstick tube but is intended to be put into a nostril and inhaled. The result should be a cool, tingling feeling.
The freshness inhaler comes in several different scents including: Wintermint, Melon Drop, Tropical Rush, Cinnamint, and Berry Breeze. The entrepreneurs claim that Tropical Rush is the company's best seller. Despite the names, however, each flavor has a base of peppermint as the core ingredient.
The entrepreneurs claim that there are two other nasal inhalers on the market but that they don't see those products as competitors as they focus more on the medical market whereas boom.boom is focused on making the product something a person might bring with them of have in their purse on a daily basis.
A single tube of boom.boom retails for $7.95 but costs only $0.70 to manufacture. Tubes are also available in three- and five-packs. Inhalers are sold wholesale between $1.50 and $2 apiece. In the previous year boom.boom made $754,000 in gross sales, realizing a profit of $120,000 after the entrepreneurs paid themselves. The entrepreneurs predict they will finish the current year grossing $1,100,000.
Combined, the husband and wife own 72% of the company equity. Other investors have put in $200,000 for 25% of the business, valuing it at $800,000. The sharks are being offered 10% of the company for $300,000 valuing the business at $3,000,000. At the original value, the sharks could have purchased the offered 10% at $80,000 making the new value quite the premium, something the sharks noted.
Robert offered $300,000 for 36% percent but the entrepreneurs replied that they could not do more than 20%, still placing a premium on the value over the previous investment round at $700,000 more. Given the amount of daylight between the two values, no deal was reached and the entrepreneurs left the tank without any sharks.
This deal aired on Episode 10.04.