Key Points From the Interview
egular listeners of Acquiring Minds have heard many times the admonition:
Don't buy small.
Buying a business without enough SDE gives you no cushion as the new owner.
Well as sound as that logic is, I feel like I have just as many guests who defy the rule and still make things happen.
Today's guest Chase Murdock is an exemplar of this.
Because Chase and his partner Adam have built a holdco of really small businesses.
Now, Chase himself says that they did so not for some strategic reason, but out of necessity.
They've taken no outside funding, so tiny businesses were what they could afford.
But there is power here, because if they can 5x each of the businesses (as is their plan), they will own a portfolio of not-so-tiny businesses, and own them outright — no investors.
And by the way, these acquisitions have all happened only in the last 2 years.
Chase's holdco is called Decada, named for the decades he intends to be building & holding these businesses.
So the long-term cash-generating potential of this portfolio is anything but tiny.
But it's not all about the money for Decada — really.
These are cool, fun businesses that add to the fabric of their hometown Salt Lake City:
A custom hat maker.
A workshop for local artists.
A builder of accessory dwelling units (ADUs).
So, not your typical assemblage of boring businesses.
Really interesting what Chase is building, and still very early days.
Here he is Chase Murdock, co-owner of Decada Group.