Minority Stakes Platform

Alex Hormozi runs an acquisition platform that buys minority stakes (20-33%) in service businesses and helps scale them using his proven business model. The focus is on high cash flow service businesses that are malleable and can achieve high margins.

Target Businesses:

• E-learning businesses in specific niches
• Brick and mortar chains with multiple successful locations
• Software as a service or tech-enabled services
• Service businesses that can be scaled nationally

Business Model Advantages:

• Focus on high cash flow service businesses
• Easy to modify and optimize:
  • Can change price points
  • Can adjust product offerings
  • Can modify client experience
• Minimal technical overhead:
  • Limited dev work needed
  • Less engineering requirements
  • Minimal UX work

Example Success Case - Children's Photography Business:

• Grew from 1 to 13 locations in one year
• Offers children's photography with storytelling experience
• High-margin product offering:
  • Photo sessions
  • Custom storybooks featuring the child
• Projected to become most valuable portfolio company

Investment Strategy:

• Take minority stake (20-33%)
• Deploy proven scaling model
• Help businesses expand nationally
• Focus on businesses that can be systematized and scaled