Transformer Table

Richard Mabley, Soslan Tsoutsiev, Alex Dore
Montreal, QC

The pitch

Richard Mabley, Soslan Tsoutsiev, Alex Dore from Montreal, QC, pitched Transformer Table in Season 13, Episode 10, asking the Dragons for $1M for 20% of the company.

Asked for$1M for 20%
Valuation$5Mimplied by the ask
OutcomeDealwith Manjit Minhas, Vincenzo Guzzo and Michele Romanow
Final deal$1M for 30%valued at $3.33M

Offers in the Den

Dragon	Offer	Result
Arlene Dickinson	No offer, did not know the furniture space and felt she could not add value beyond some connections	Out
Jim Treliving	No offer, did not want to be in the business for a million dollars	Out
Lane Merrifield	No offer, not a strategic fit	Out
Manjit Minhas	$1,000,000 for 30%	Accepted
Michele Romanow and Vincenzo Guzzo	$1,000,000 for 25% jointly, later matched to 30% as part of a three-way deal	Accepted

Richard Mabley, Soslan Tsoutsiev and Alex Dore of Montreal, QC pitched Transformer Table, a line of space-saving furniture including a table that expands to seat up to 12 people and a bench with panels that store inside a box, asking for $1,000,000 for a 20% stake. The products are patented and sold mostly direct to consumer online, with sales of $2.6 million in the first four months of the year and projected sales of $7 million for the year; gross margin is 80% to 85%, net margin about 50%, customer acquisition cost is about $22, and the company recently received an order from Home Depot for 2,000 units. The founders said they did not need the money for cash flow but wanted expertise and business connections.

Arlene Dickinson, Jim Treliving and Lane Merrifield declined to invest, citing lack of fit or relevant expertise. Manjit Minhas offered $1,000,000 for 30%, while Michele Romanow and Vincenzo Guzzo jointly offered $1,000,000 for 25%; the founders countered for all three Dragons to invest together at 30%, which was accepted, splitting the equity three ways at 10% each.

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