The problem with the valuations on Undercover Billionaire Season 2

I made a video before about some of the issues of filming a show like undercover billionaire and I skipped the valuations as I wanted to give it time, since in order to do so it requires discussing spoilers, so this is the problem with the valuations on Undercover Billionaire Season 2.
With that out of the way, when I watched the show the ending felt strange given all 3 hit the target. Which lets be honest, the valuations were out there…
I don’t want to take away from what they achieved, it was an impressive effort in a short time.
Having gone through the valuation process, including due diligence through the sale of the company, I really wish that we had these valuers there doing it.
The first glaring issue with their companies when selling would be that they all rely heavily on the founder to run the business.
All 3 businesses are in big trouble when you take the key person out of it. Businesses that rely on the founder or person selling the company to run it, aren’t worth the same amount as a business that has a core management team running the company where removing the founder doesn’t effect the operations.
Elaine’s could run, but wouldn’t have the vision or the leader to drive it and its far from a situation where it would survive without her driving it.
Grant’s again could run but without his input and even using the 10x brand means it wouldn’t be worth the same. He does have the advantage of having Matt there to run the business, but still not without Grant’s assistance to get the same results.
Monique’s business is nothing without her.
Now its pretty much impossible to create a business that’s setup to sell in 90 days so I am not being critical of them and their achievements were impressive.
#undercoverbillionaire #grantcardone #10x

[steveruqus]

Totally agree. Grants guy said "If you hit all your targets for 5 years...". I also noted that they were paying people half the average salary for their area. I would love to find such hatd working people for $31k per year. Thats not sustainable. I still loved the show, but it makes buying businesses harder. Owners already value too high.

[fredward]

Rooted LLC vs. Discovery Inc. (1:21-cv-00328) Trademark lawsuit. Ohio District Court . Rooted was in use as of 2015 .

[DaryleHamel]

Cardone's valuation did NOT include the 10X branding- it was evaluated before he revealed his identity. Also, Matt Smith was considered a founder and majority stake holder (51%) with 2 businesses that had history and were operating at a profit. But again, the valuation was done BEFORE they knew Cardones character was hitting splitsville. Wake Up Pueblo was valued off the premise of AVG +2 new clients/month. I'm not sure if the building asset was taken into consideration.

[kevinbaldwin]

Monique's valuation was insane. That business is worth no more than $50, 000 (still very generous). The business had no assets and ultimately violated a trademark since "Rooted" was already taken in Washington. It was a joke.

[Eric_Casteel]

Grant's business will succeed because Matt is amazing, it has nothing to do with Grant. Grant actually didn't provide very much other than the idea. Matt is the one who secured every single one of those clients. Sheps club was pretty cool but they need someone with more practical experience for it to work whenever she goes home. Rooted was horrible and I am pretty sure it has already failed. I know she did not do this on purpose, but she took advantage of the people of Tacoma. It was nothing short of exploitation to be honest. I think that shows a lot back to the people of Tacoma and the people who helped her out. Again I know she did not do this on purpose but she completely scammed everyone of them.

[avatar]

I don't agree with your point because the businesses worth more that theirs evaluation for two reasons: the first is that businesses were evaluated before revealing the identity of the founders; second, once the identity of the founders is revealed, the push will be given to the business. Let's take Grant's marketing agency as an example; in fact, it will gain more clients since the founder is a worldwide celebrity. Even if you take him off the table, the agency is related to his name and people have trust on him. I guess, after revealing his identity, the agency is worth more than its actual evaluation.

[success]

Andrew Tate calls this arrogance... So a Billionaire shows us how to do it and you feel like your opinion is much more significant than the billionaire that stands in front of crowds... Imagine if you wanted to learn how to box and Mike tyson came to teach you... Are you seriously going to tell him how wrong he is 🤣🤣🤣 or basketball are you truely going to tell LeBron James how to play basketball 😂🏀

[success]

Grants business can run without him it's relied on the quality customers which they have and as long as Businesses in pueblo want to grow they are the only marketing company there so there's no other choice for other companies to help grow except for wake up pueblo business so sorry but you don't understand what your saying

[seahawkfootball]

Your premise that it is valuated to sell is the first issue with your assessment. A company can be valuated for many reasons, including getting funding. Secondly, all three companies can (and are) running without the founders. Thirdly, the accountants did not know who they were, so that wasn't a part of the valuation process. Honestly, you sort of sound bitter that you didn't get enough for your business.