3LS Inc. Strengthens Its Family of Companies
3LS, Inc., a distinguished employee-owned organization, has made significant strides in the business world by acquiring the ESOP advisory firm, 40 Million Owners. This acquisition marks a pivotal step for 3LS as it seeks to expand its services under the 3LS Professional Services division, further enhancing its mission to foster sustainable employee-owned enterprises across the nation.
The Vision Behind the Acquisition
At the helm of 3LS, CEO Eric Strickland expressed excitement about the alliance. He stated, "We are thrilled to have 40 Million Owners join our 3LS family of companies." This merger not only fills a crucial void in the advisory market for employee-owned companies but also empowers further growth within the landscape of employee ownership.
Co-founders Mike Brady and Michael Morosi of 40 Million Owners recognized a significant opportunity within the realm of employee ownership. They designed their firm to meet the comprehensive advisory needs for ESOPs and have been instrumental in propelling the movement towards more employee-owned businesses.
Complementary Expertise and Focus
40 Million Owners specializes in ensuring employee-owned companies can grow effectively through acquisitions. This focus aligns perfectly with 3LS's core objectives, amplifying the reach and impact of both companies. Brady, with his rich background in strategy and operations, couples with Morosi's investment expertise to provide an unparalleled advisory service for ESOPs.
Driving Change Through Acquisitions
The duo's passion is evident in their strategy for scaling employee ownership, which has shown to enhance both business resilience and community strength. The firm operates with a clear understanding that ESOPs can serve as competitive buyers in today’s market. They continually advocate for employee ownership as a viable succession plan for business owners.
With the rising number of business transitions across various industries, this acquisition arrives at a crucial moment. Morosi notes that only 2% of middle-market companies are currently employee-owned, highlighting the immense potential for growth within this sector. With their robust approach, they aim to increase both the number of ESOPs and participants, creating a more inclusive economic environment.
Looking Ahead: Goals and Aspirations
Brady emphasized the ongoing momentum for employee ownership, stating, "Acquisitions power the creation of stronger, more resilient, and more valuable ESOPs." This insight reflects an understanding of the changing landscape where ESOPs are seen not just as alternatives to private equity but as a route to a sustainable business future.
Roles and Responsibilities After the Acquisition
Post-acquisition, Brady is set to assume the role of Managing Director, overseeing daily operations for 40 Million Owners. Meanwhile, Morosi transitions to become the inaugural Chief Investment Officer for 3LS, responsible for strategic capital allocation and corporate development.
The Commitment of 3LS Inc.
3LS, Inc. continues to grow as a family of 18 employee-owned companies, unified under the mission of empowering good. The firm has approximately 700 employees and offices spread across the United States, with an emphasis on quality services in child welfare, behavioral healthcare, and innovative technologies.
Through strategic acquisitions and partnerships, 3LS aims to scale its impact on sectors essential to the community while enhancing generational opportunities for its employee owners. By bringing 40 Million Owners into their fold, they are set to provide a comprehensive suite of services designed for change-makers across the country.
Frequently Asked Questions
What is the role of 40 Million Owners within 3LS, Inc.?
40 Million Owners will operate under 3LS Professional Services, focusing on advising ESOPs on growth through acquisitions.
Who are the founders of 40 Million Owners?
The firm was co-founded by Mike Brady and Michael Morosi, who bring extensive experience in employee ownership and finance.
What are ESOPs?
Employee Stock Ownership Plans (ESOPs) are programs that provide a company's workforce with an ownership interest in the company.
How does 3LS, Inc. aim to impact employee ownership?
3LS aims to empower good and grow the number of employee-owned businesses through strategic acquisitions and advisory services.
What potential growth opportunities exist within ESOPs?
There is significant potential to increase the presence of employee ownership in the market, particularly as more businesses transition to ESOP structures.
