5x in 5 Years Buying Small to Grow Quickly | Chase Murdock Interview

Holdco Vision

Chase Murdock's journey from venture-backed startups to establishing the Decada Group highlights a shift towards building sustainable, long-lasting businesses. He and his partner, Adam, transitioned from the fast-paced 0 to 1 startup world to focus on creating a holding company that prioritizes longevity and community impact. This change was inspired by a desire to build something enduring, as Chase explains, "It was kind of the solution to that issue of not only did we switch leaving the 0 to 1 game to go play in the 1 to 2 game, but it was how do we build something long lasting, ideally with a multi decade strategy" 1. Their first venture, Taylor Cooperative, emerged from a casual hike, marking the beginning of their journey into the world of small business ownership 2.

   

Investment Strategy

Decada Group's investment philosophy is rooted in strategic risk management and a commitment to rapid growth. Chase Murdock likens the small business landscape to a "death zone," where businesses under $5 million face significant risks and require swift action to thrive 3. To mitigate these risks, Decada focuses on acquiring small businesses with the potential to 5x in five years, leveraging their playbook to drive growth and stability. Chase emphasizes the importance of conviction in their acquisitions, stating, "It's why we've exclusively acquired businesses where we have conviction. We can apply our playbook to grow the business quickly into more stable territory" 4. This approach allows them to navigate the unique challenges of small business ownership while aiming for substantial returns.

   

Operator Dynamics

Managing operator autonomy within Decada Group presents both challenges and opportunities. Chase Murdock describes the importance of hiring and retaining great operators as a foundational aspect of their holding company model 5. They strive to empower operators by providing support through shared services and acting as a sounding board for critical decisions. Chase likens their role to "the ironman suit around our operators," offering guidance while allowing autonomy 6. However, finding the right balance of support and independence is crucial, as too much autonomy can lead to issues if the wrong operator is in place 7. This delicate balance is key to ensuring the success and growth of their portfolio companies.