#United States #Nashville #Employee Ownership #3LS Inc #40 Million Owners

3LS, Inc. Expands its Horizons with Acquisition of 40 Million Owners

In a remarkable development announced on September 4, 2025, 3LS, Inc., a prominent employee-owned family of companies based in Nashville, Tennessee, has entered into an acquisition agreement with the ESOP advisory firm, 40 Million Owners. This strategic addition to its portfolio signifies 3LS's commitment to promote sustainable employee ownership across the nation.

The Vision Behind the Acquisition

3LS, Inc. has always focused on empowering individuals and businesses through employee ownership. With the integration of 40 Million Owners, co-founded by Mike Brady and Michael Morosi, they aim to leverage their expertise in the niche area of employee stock ownership plans (ESOPs). Brady and Morosi have dedicated their efforts to filling a crucial gap in the market by providing guidance to leaders of employee-owned entities seeking growth through acquisitions.

Eric Strickland, CEO of 3LS, expressed his enthusiasm for the acquisition, stating, "We are thrilled to have 40 Million Owners join our 3LS family of companies. Their identified need for business leaders seeking to foster growth through acquisitions aligns perfectly with our mission to empower good and grow comprehensive employee ownership."

The addition is not just a numerical expansion; it represents a shared vision to transform the future of business ownership in America. The founders of 40 Million Owners have spent years observing the potency of employee ownership in fostering robust businesses and healthier communities.

A Complementary Fit

The expertise brought by 40 Million Owners is vital for the evolution of 3LS’s Professional Services division. The firm specializes in engineering solutions that assist ESOPs in navigating acquisitions, enabling businesses to emerge as strong contenders in the marketplace. Given the competitive landscape, the shift towards ESOPs is not merely a trend; it is becoming recognized as a desirable exit strategy for many business owners. This growing preference stems from the understanding that ESOPs present a sustainable avenue for transitioning ownership while ensuring the future well-being of employees.

Unlocking Opportunities in ESOPs

According to Morosi, the economic landscape reveals a generational opportunity to reshape ownership in the country. Currently, a mere 2% of the approximately 600,000 middle-market companies in the U.S. are employee-owned. 40 Million Owners aims to reverse this trend, promising to double the number of ESOPs and their participants in the coming years. The delineation of acquisitions by ESOPs has already led to the establishment of nearly 100,000 new employee owners, as noted by the National Center for Employee Ownership (NCEO).

Brady added, "Acquisitions catalyze the creation of more resilient and valuable ESOPs. Our goal is to provide ESOP leaders with the tools and confidence needed to implement successful acquisitions. Together with 3LS, we can accelerate the vision of a world where every employee can be an owner."

Forward-Thinking Leadership

As part of this acquisition, Brady will assume the role of Managing Director for 40 Million Owners, overseeing daily operations, while Morosi will step into the role of 3LS's first Chief Investment Officer. This leadership restructuring is poised to amplify the synergies that 3LS and 40 Million Owners bring to the table, thereby enhancing their advisory services across the board.

About 3LS, Inc.

3LS, Inc. is a leading collective of 18 employee-owned companies, uniting nearly 700 professionals across five locations in the U.S. This organization prioritizes health and human services and strives to invest in transformative technology and quality professional services.

About 40 Million Owners

The mission of 40 Million Owners is ambitious yet straightforward: empower a significant number of Americans to become business owners through employee ownership. Specializing in acquisition advisory services for ESOPs, this firm believes in the efficacy of employee ownership in creating a thriving economy.

This acquisition marks an exciting chapter for 3LS, Inc. and 40 Million Owners as they collectively champion a future filled with opportunities, resilience, and widespread ownership among employees.