Build Teams Before Acquiring

Alex Hormozi describes a talent-first acquisition strategy where they build executive teams for portfolio companies before taking majority ownership. The approach focuses on recruiting and placing top talent to grow businesses before potentially acquiring them.

Key Points:

• Talent Recruitment Strategy:

  • Use their influence to attract high-quality talent at market rate or below
  • Screen and vet candidates extensively through Mozy Talent
  • Match candidates to specific company needs based on growth stage
  • Only fill roles once with the right person who matches culture and skill requirements

• Executive Team Building:

  • Place entire executive teams into portfolio companies
  • Focus on key roles like:
    • Controllers/CFOs with transaction experience
    • Sales leaders who have built multiple teams
    • Heads of marketing, customer success, and other core functions
  • Test candidates through skill assessments and cultural fit

• Acquisition Process:

  • Start with minority stakes in companies
  • Build and place executive teams
  • Consider majority acquisition after proving team effectiveness
  • Example: Took majority ownership of a company after building entire executive team and founder wanted to step back

• Value Creation Method:

  • Heavy investment in talent screening (100+ interviews for one role)
  • Long-term incentive alignment through equity
  • Focus on finding leaders who have scaled similar businesses before
  • Maintain founder relationships while building professional management