Alex Hormozi Describes The Moment He Sold His Company for $46 Million

0:00You just had a big exit, right? Last year, what was that for? How much? >> It was 46.5. >> 46 million. So, when that enters your account, what did you expect would happen? What did happen? And what can you teach other people about what they should expect to happen when they have a big exit? >> So, I will say that I I did not feel the money. I did feel the loss of cash flow. Because I had this You know, I had measured myself off cash flow for since

0:26>> don't have any. >> Right. >> You got a big chunk, but then no money coming in every month. >> So, I actually felt and I probably still still feel poorer >> [laughter] >> now than I did before the exit. >> That's interesting. >> Because the cash flow has gone down. Now, I I I know that acquisition.com is going to be I think significantly bigger than than those companies were. Um but in the interim, I definitely did not feel any better after that. Um I am happy that I did it because I do think I'm in the right, you know, vehicle doing what we're doing now, making the books, making the the YouTube channels, the the Twitters, the

1:00>> Yeah, yeah, yeah. >> the social medias, all of them. But the cash flow is what I felt. And because I'd taken dividends my whole life, the amount of money that we got out was pretty much about what we already had anyways. So, it was not life-changing in any way. Um it didn't change how I lived at all. Um like not at all. We didn't We didn't have any big like, "What are you going to buy?" I was like, "Well, I could, you know, >> I'm happy already. >> could buy 100 Lambos before the sale. You know what I mean? Like that wasn't going to And I'd never bought them in And I never did.

1:27>> So, like >> Yeah. You know, cuz I I don't get a lot of out of that. Um what else was different? Losing Losing the team is hard. >> Yeah. >> Um because when you sell a company, you sell the you sell the people. >> Like that's something that people don't talk about cuz it sounds bad. >> Yeah, but you sell you sell the organism. >> the the system, the people, the processes, and everything. >> 100%. And so, that was That was hard because there's definitely times now that we're building acquisition.com where I'm like, "Man, I wish I had so-and-so." Or uh I already taught this person everything I like I have to do it again. So, there is a but there's also some level of beauty to it because now that I'm doing acquisition.com um I have a different appreciation for what I'm doing because every other time that I've started something it has been from a place of lack. It has been from a like well this is what's going to not make me bored. You know what I mean? Like the gyms was all about that and then I lost it all. So, the second time was all about that again.

2:21>> Wow. >> So, this time I'm starting not like that. And I know what it got like well before we sold the companies last year, I spent basically 12 months not doing anything because I wasn't required in the business. Like it truly it ran. And so I had a lot like it was very depressing. Exactly. It was very depressing for me. >> What happens if we don't have a purpose? >> I mean you you find one. >> Yeah. [laughter] >> You know what I mean? And so for me >> But you're in a depressed state [clears throat] even though you have I mean I'm sure you were fine but you were emotionally mentally like what am I doing every day?

2:51>> Exactly. I have nothing >> go to the gym for so long. >> Right. >> Can only >> Go to dinner. Yeah. I mean like what else you going to do? >> I can eat every meal I want. I can travel. Okay, now what after 3 months of that? You got to have some mission. You got to have some purpose, right? Even though you have the money, your safety, you have everything. >> Yeah. >> Security but it wasn't fulfilling. >> 100%. And so that was that was 12 straight months and it was because we were going through a sales process. So, you can't start new initiatives because I'm in the middle of a sale um and you don't want to like make any massive new hires.

3:22And so you just basically have to just like maintain. >> And the whole time you're wondering I hope this deal goes through because if it doesn't then you just wasted a year just doing nothing and then you might have to do it again. So, it was this it was it was a super super it was one of the most emotionally tiring years of my life because it's always like this is about to happen. It's not going to happen. The deal's on the table. The deal's off the table. Like there's all of this drama that's happening constantly and I also one of the things that sucked that I didn't like was as soon as I had made the decision to sell um or that I was going to entertain the idea of selling and this is a mistake I made.

3:58Everything became about satisfying a fictitious overlord of like what what what will they think about this move? Well, how will they value this? And I started thinking Who is they? Whatever acquirer >> Uh-huh. >> who whatever private equity was going to buy the company like how are they going to see this? Are they going to value this? Or is this a waste? And so what happened was I started making the private equity buyer my customer. And that was a mistake. And so I think that like at the end of the day and now that and what happened was interestingly we started the sales process because my wife and I were beat down. Like we were just very tired of you know we've been in gyms for almost 10 years you know at that point not to say that that's not a good thing but like whatever we we were on this course.

4:37>> We were ready. But in order for us to sell it and make it a sellable business we had to fix all the things that were wrong with it, right? And so we took a year before the year. >> Now was that 2020 or 2021? >> Exactly. Yeah. So it took two years basically. One year to like fix everything and then one year to sell it. But the thing is it's just like when you have a house that you like fix up before you get ready to sell it. By the time you're about to sell it you're like I love this house. >> This is amazing. >> I just fixed all these all the problems I fixed. >> Now I've got more cash flow. It's more efficient. You know I got rid of the toxic people. Yeah.

5:05>> Yeah. Exactly. >> [laughter] >> And so it was again a very like mind trip experience where I'm like well maybe I should just hold it as an asset that just produces cash flow. You know Uncle Warren never sells anything. Like selling is what makes you rich. Keeping is what makes you wealthy. Like you know I'm like I've got all these kind of things in the back of my mind but I think ultimately like I think no matter what we had done we would have been fine but I think for me right now I think the likelihood that the choice if I had two alternate realities which I don't have to play in I think that the choice will ultimately yield more impact for more people. Um I would not have the attention to do acquisition.com and the media stuff that we're doing right now.

5:37I wouldn't be here. >> Right. To stray. >> I wouldn't be focused on your gyms. >> Yeah. Or the yeah exactly on those companies that were in that in that portfolio. And acquisition.com would still be a side thing but it probably wouldn't be the main thing. >> Um whereas now it is 100% of my attention and the companies are killing it and um I feel renewed.

6:04If you like this video and you're business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free and since you're business owner, I appreciate you and enjoy.