Podcast Summary
Reasons for selling businesses and personal assets: Selling businesses and personal assets can be driven by various compelling reasons, such as legitimizing success, keeping businesses, financial gains, energy and time considerations, and team and resources.
The speaker, a business investor, made the decision to sell major stakes of three companies, his house, and two cars last year due to several reasons. These reasons included the story of selling to become legitimate, the story of keeping the businesses, the money story, the energy, time, and headspace story, and the team and resources story. The speaker, who owns acquisition.com and doesn't have any coaching, masterminds, or courses, wanted to document the process and share the lessons learned with others. Despite being against sales for most of his career, he ended up selling due to these compelling reasons. The speaker emphasized that he had been taking home over a million dollars a month for years and still felt the need to sell to legitimize his success. He also highlighted the importance of considering the stories behind selling and keeping businesses, the financial implications, the impact on energy and resources, and the vision for one's life when making such a decision.
Understanding personal motivations for a business sale: Consider both personal reasons like validation or change, and financial implications like costs and taxes, before deciding to sell a business.
Personal motivations for a business sale can be complex and multifaceted. Some people may seek validation through material success or a change in branding, while others may be driven by the desire to decrease risk and increase net worth. However, it's important to consider the actual financial implications of a sale, which can include transaction costs, taxes, and decreased net worth. Additionally, if one can match the desired conditions of their life without selling, they may be able to accomplish the same objectives without the inefficiencies of a transaction. Ultimately, the decision to sell a business should be based on a thorough understanding of both the personal and financial motivations and implications.
Making difficult life changes: Three hardest decisions: Believe in something better, even if it's untested, and trust your instincts to take the leap for unexpected growth and fulfillment.
Making significant life changes, such as leaving a successful career or selling a business, can be incredibly difficult but also rewarding. The speaker shared that quitting his job to start a gym, selling his gyms to launch a new venture, and selling his businesses to focus on acquisitions were the three hardest decisions he's made in his life. These decisions required letting go of something that gave him status for something unproven and uncertain. However, the risk of failure decreased with each subsequent decision as he gained experience and skills. The common theme among these decisions was the fear of the unknown and the need to believe in something better, even if it was untested. The speaker encourages anyone in a similar situation to trust their instincts and take the leap, as the other side can bring unexpected growth and fulfillment.
Personal connections and emotional hurdles in business decisions: Selling a business can be emotionally challenging due to personal connections and potential loss of control, but the decision depends on various factors including personal values and sustainability.
Making difficult business decisions, such as selling a company or making minority investments, can be emotionally challenging, even when the latter option may seem less risky. The speaker's personal connection to the business and brand, as well as the potential loss of control, can make the decision to sell a significant emotional hurdle. Additionally, the belief that "rich people sell stuff that wealthy people never sell" can influence the decision-making process. However, the speaker also acknowledges that having too many active businesses may not be sustainable for them personally. Ultimately, the decision to sell or hold onto a business depends on various factors, including personal values, emotional attachment, and the potential impact on net worth.
Considering the emotional and practical implications of selling a business: The emotional attachment and loss of energy, headspace, and team outweigh the potential financial gains when considering selling a business. Building a conglomeration provides leverage and resources, making it a better long-term investment.
Being an owner of a business involves more than just passive investment. The speaker shared his personal experience of considering selling some of his companies and the emotional and practical considerations that came with it. He realized that the potential sadness of selling, the loss of energy and headspace, and the dismantling of his core team outweighed the benefits, such as the potential financial gain. The speaker also emphasized the importance of keeping his existing companies and building a conglomeration, as it provided him with leverage and resources. Ultimately, the speaker concluded that the value of owning a business goes beyond just the financial aspect, and the benefits of keeping the team and maintaining control outweighed the potential gains from selling.
Lessons from selling a business: Selling a business can lead to valuable lessons and new opportunities, even if the outcome isn't what was initially desired. Staying engaged and focused on entrepreneurial pursuits is crucial for success.
Making difficult business decisions, such as selling a company, can provide valuable lessons even if the outcome isn't what was initially desired. The speaker in this discussion sold a business despite having reservations, believing that focusing on one active business would ultimately lead to greater success. After the sale, he felt no sense of financial gain and instead began building a new business, Acquisition.com, with a passion for helping other entrepreneurs grow their companies. Through this experience, he gained a new appreciation for the challenges of starting a business from scratch and the importance of staying engaged and focused on his entrepreneurial pursuits.
Fueled by passion, the speaker chose to sell other businesses to focus fully on their current venture: Passion drives personal and professional growth. Focusing on one project can lead to greater success than juggling multiple businesses.
Passion and fulfillment are essential drivers for personal and professional growth. The speaker in this discussion shared their deep love for business and how it consumes their thoughts and energy. They recognized that they had the financial means to retire but chose to continue working due to their passion. The decision to sell majority stakes in other companies allowed them to focus fully on their current venture, freeing up valuable headspace and enabling them to make unencumbered decisions. The opportunity cost of maintaining multiple businesses was deemed too high, as it would have limited their ability to fully commit to one project and potentially hinder its growth. Ultimately, the speaker's commitment to their passion and the desire to focus on a single project led them to make the difficult decision to sell and simplify their business portfolio.
Selling a business for time and focus: Speaker chose to sell a business for full attention and energy to build next thing, despite short-term financial consequences. They saw opportunity to diversify investments and reduce risks, and bought back their time to prioritize interests.
The speaker made a difficult decision to sell a business to focus on building the next thing, despite the short-term financial consequences. They believed that their full attention and energy would lead to greater long-term returns, and that the investment in their time and focus was more valuable than the money they would receive from the sale. The speaker also saw the opportunity to diversify their investments and reduce potential risks. Ultimately, they felt that they were buying back their time and prioritizing their interests, even if it meant selling something they still cared about. The speaker acknowledged that this decision may not align with the typical perspective of wealthy individuals, who are often advised to sell only when they no longer have an interest in a business or when they perceive the market as unfavorable. However, for the speaker, the primary cost they were trying to pay down was the opportunity cost of not being able to give their full attention to the next project. They saw the sale as a means to invest in themselves and their future endeavors.
Personal values and priorities led the speaker to keep business proceeds: Understanding and prioritizing personal values can lead to better long-term outcomes, even if it means saying no to other opportunities.
The speaker made a decision to keep the proceeds from the sale of their business instead of distributing it to investors, based on their personal values and priorities. They believe that making decisions from a position of financial security leads to better long-term outcomes. The sale and the subsequent recognition from peers and mentors gave legitimacy to what they had built, but keeping the money allowed them to focus on what they truly wanted in life. The decision was not an easy one, as it meant saying no to other opportunities, but ultimately, it was a priority for them. The speaker encourages viewers to understand and prioritize their own values and make decisions accordingly.
