The Game with Alex Hormozi

Lessons Learned from Investing in 22 Companies (Pt.2) | Ep 609

118 snips
Sep 21, 2023
Explore the vital role of founder-friendly investments and how they shape business success. Discover the pitfalls of traditional private equity practices and the necessity of tough conversations for growth. Learn why complete adherence to advice is crucial in operations and the dangers of partial compliance. Find out how empowering founders and focusing on key metrics can drive performance. Plus, gain insights into effective investment strategies and the importance of experienced team members for maximizing growth potential.
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ADVICE

Founder-Friendly Investing

  • Be founder-friendly in investment decisions, recognizing founders' contributions.
  • Structure deals to benefit both investors and founders, aiming for mutual growth.
INSIGHT

Traditional PE Shortcomings

  • Traditional Private Equity (PE) often prioritizes financial engineering over business growth.
  • Their processes can be lengthy, litigious, and focused on cost-cutting rather than expansion.
ADVICE

Faster Deal Closing

  • Aim for shorter deal processes to maintain an advantage as the seller.
  • Longer deals favor buyers, giving them more time to scrutinize and potentially devalue your business.
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