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  • 🏆 Decada Group's 2023 Annual Letter: Wisdom Forged

🏆 Decada Group's 2023 Annual Letter: Wisdom Forged

Good news — after being on pause, Local Legends is back. ✊ 

My commitment to intentional content means Local Legends will arrive in your inbox not on a fixed schedule, but whenever there's valuable insight to share.

Sometimes that's when inspiration strikes, other times it's in the quieter moments between bustling projects.

One such project has been immersing myself in writing Decada Group’s third annual letter, a cornerstone of our reflection and forward-looking vision that is now ready for you to explore.

This year’s letter, titled "Wisdom Forged," dives into the transformative experiences and key takeaways acquiring and stewarding a diverse portfolio of enduring small businesses

In our letter, you’ll read about…

· Decada’s financial highlights: earnings skyrocketing 297.1% year-on-year and a 33.7% increase in revenue

· Why we focus on acquiring businesses in the challenging "Death Zone" of small business

· A pivotal decision that led to divesting a business in our portfolio

· The stark difference between the role of operator vs. capital allocator

· Strategies for managing turnarounds & navigating the M&A 'J-Curve'

· A glimpse into Decada's outlook for 2024

· And more…

Since the last edition of Local Legends, my thoughts have coalesced around a variety of topics, ready to be shared in the upcoming issues.

So thank you for subscribing — it fuels this exchange of ideas around the heart and soul of intentional company building.

If you feel so inclined, please enjoy Decada Group’s 2023 Annual Letter below.

Decada Group’s 2023 Annual Letter: Wisdom Forged

As I settle in to write our annual letter, I'm struck by the unique chapter each year contributes to Decada’s story. Each letter serves as a time capsule filled with reflections from the previous year and our outlook ahead.

This tradition is about more than writing up summaries; it’s about holding to our commitment to reflect on our hardest-earned lessons and chronicle our journey building the multi-decade life project that Adam and I have made in Decada Group

2023 was a year of transformation. It was a year of building capacity and coming of age. With three full years behind us, we’re no longer seeing things for the first or second time anymore.

This past year marked a shift from our initial period of rapid expansion. There were no flashy press releases or major acquisitions to announce. Instead, we chose to focus on fortifying our existing operations and strengthen our core, which was clearly reflected in our financial highlights for 2023:

  • Organic Revenue Growth: 33.7% Year-on-Year

  • EBITDA Growth: 297.1% Year-on-Year

  • Debt Service Coverage Ratio: 5.1x

  • Cumulative Return on Invested Capital (ROIC): 5.7x

  • Decada Maturity Score: 40.1% increase Year-on-Year

The story of Decada Group is deeper than what our numbers can depict. They don’t encompass Adam's and my initial motivations for building Decada. Our vision is anchored in building a life's work steeped in purpose and community – a journey so fulfilling that the concepts of 'exit' or 'retirement' lose their allure.

Instead of pursuing the most profitable businesses, our portfolio mirrors our passions: from our bespoke suit shop with the soul of NYC sub-planted in downtown Salt Lake City, to our art academy hosting thousands of classes that ignite creativity in our community. From a high-end construction firm, operating at the forefront of solving Utah’s housing crisis through micro-housing, to our electrical contractor lighting up the Wasatch Front.

These companies represent more than financial assets – they are integral community assets, embodying our commitment to tackle meaningful problems that matter to us, and to do it while working alongside people we admire and respect, both inside and outside the office.

This letter delves into what underpins Decada Group. Our journey in 2023, navigating the challenging 'Death Zone' of small business, has honed key principles and imparted valuable wisdom: how to approach crucial 'Upstream Decisions', the balancing act between growth and profitability, and various lessons we crystallized that I think will resonate with entrepreneurs, team members, and fellow travelers in the realm of business and life.

As we close the year, we find ourselves inspired by the leaders who helm our companies and the founders who trusted us with their legacies. We’re proud of our team, whose unwavering dedication has been a cornerstone of our success. Without them, there is no Decada.

Continue reading the full letter…

That’s it for this week — thanks for following along. I love getting reader feedback and input on what to write about next. Just hit reply. As always, you can find me here:

Have a great week!

- Chase Murdock

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