Why I Sold | Ep 373

Decision

Alex Hormozi made the bold decision to sell majority stakes in several of his companies, including a 75% stake in one, as well as his house and cars. He explains that the decision was driven by a desire to focus on building something bigger, where even a 10% increase in effectiveness could outweigh the total value of his sold companies 1. Alex felt like he was buying back his time and headspace, rather than just selling assets 2.

It felt like I was trading my equity for my headspace and the money just happened to be an additional portion of the deal.

--- Alex Hormozi

This strategic move was about prioritizing his ultimate goals and saying no to everything else 3.

   

Emotions

Selling his businesses came with emotional challenges for Alex, particularly with Gym Launch, which he felt was a part of him despite not being actively involved 4. He grappled with the idea that no amount of money could replace the emotional attachment he had to his companies.

I realized that no matter what the number was, I would end up being a little bit sad.

--- Alex Hormozi

The decision also meant losing his core team, which added to the emotional weight of the sale 5.

   

Finance

Financially, Alex faced the paradox of selling his companies. Despite taking home a million a month for years, he realized that selling decreased his net worth due to taxes and transaction costs 6. The sale was not about financial gain but rather about reducing risk and gaining legitimacy in a new industry.

The reality of it is that your after-tax net worth is actually lower than your presale net worth.

--- Alex Hormozi

He aimed to break free from his fitness industry identity and create space for new ventures 5.