Country Chic Paint Ltd

Rosanne and Jan Korteland
Duncan, BC

The pitch

Rosanne and Jan Korteland from Duncan, BC, pitched Country Chic Paint Ltd in Season 10, Episode 4, asking the Dragons for $100K for 10% of the company.

Asked for$100K for 10%
Valuation$1Mimplied by the ask
OutcomeDealwith Jim Treliving and Joe Mimran
Final deal$100K for 20%valued at $500K

Offers in the Den

Dragon	Offer	Result
Jim Treliving	$100,000 for 20%	Accepted
Michael Wekerle	$100,000 on a 4% royalty until repaid, then 2% royalty	Declined
Manjit Minhas	Out - market too niche	Out
Michele Romanow	Out - founders should keep equity and self-fund	Out
Joe Mimran	Joined Jim Treliving, splitting $100,000 for 20% (10% each)	Accepted

Rosanne and Jan Korteland, from Duncan, BC, asked for $100,000 for 10% of Country Chic Paint, a line of eco-friendly, low-odour chalk and mineral paints for furniture and home decor that can be applied without stripping old finishes. The paint retails for $10 to $40 and is sold in about 160 boutique shops across North America, with about 30 colours plus twice-yearly limited edition lines. Over the last 12 months the company did $930,000 in sales with a 50% gross margin and a $65,000 profit, and it is on track for $1.5 million in sales and a $300,000 net profit this year, with a monthly breakeven around $65,000.

Jim Treliving offered $100,000 for 20%, drawing on his experience with a similar prior deal. Michael Wekerle offered $100,000 on a royalty basis. Manjit Minhas and Michele Romanow went out, feeling the market was too niche or that the founders should keep their equity. Joe Mimran joined Jim Treliving, and after negotiation over a higher valuation was floated and declined by the founders, Rosanne and Jan Korteland accepted the original offer of $100,000 for 20%, split evenly between Jim Treliving and Joe Mimran.

Pitch details from CBC’s Dragons’ Den pitch page.