3LS, an employee-owned family of companies, has announced the acquisition of 40 Million Owners, a respected ESOP advisory firm focused on building sustainable employee-owned enterprises. The firm will now become part of the growing 3LS Professional Services division, joining a portfolio that includes the marketing agency 5by5.
Founded with a vision to make employee ownership the norm rather than the exception, 40 Million Owners has carved out a unique space in the market by helping ESOPs and ESOP holding companies grow through strategic acquisitions.
Company co-founders Mike Brady and Michael Morosi brought together complementary expertise—Brady with a background in strategy, operations, and organizational culture, and Morosi with deep experience in investment banking and capital structuring. Together, they’ve built a firm that not only advises on transactions but also helps shape the long-term success of employee-owned businesses.
The acquisition comes at a time when ESOPs are gaining traction as competitive buyers in the marketplace. For business owners considering succession or exit planning, selling to an ESOP offers a compelling alternative to private equity or strategic competitors. It’s often a faster, more cost-effective path that preserves company culture and rewards employees with ownership. 40 Million Owners has been instrumental in helping companies navigate this transition, offering services that span strategy design, deal sourcing, execution, and post-acquisition integration.
With the acquisition, Mike Brady will take on the role of Managing Director, overseeing the day-to-day operations of 40 Million Owners within the 3LS ecosystem. Michael Morosi will step into a newly created role as Chief Investment Officer of 3LS where he will lead capital allocation and corporate development efforts across the family of companies. Their leadership will be central to expanding 3LS’s capabilities in the ESOP space and deepening its impact on the employee ownership movement.
The addition of 40 Million Owners to 3LS Professional Services signals a growing commitment to supporting companies that prioritize purpose alongside profit. By integrating financial advisory expertise with strategic growth services, 3LS is positioning itself as a trusted partner for organizations seeking to scale responsibly and sustainably. The firm’s employee-owned structure reinforces this ethos, creating alignment between its mission and its business model.
KEY QUOTES:
“We are thrilled to have 40 Million Owners join our 3LS family of companies. Co-founders Mike Brady and Michael Morosi recognized a critical gap in the market for leaders of employee-owned companies seeking to grow through acquisitions. They created 40 Million Owners to meet that need, and in doing so have gone beyond filling a gap—they are powering the next chapter of employee ownership growth.”
“Their passion for scaling employee ownership through acquisitions is perfectly aligned with our mission at 3LS to do good, empower good and grow good. In addition, their clients and advisory expertise are highly complementary to our growing suite of professional services. They’ll be an incredible addition to our 3LS team.”
3LS, Inc. CEO, Eric Strickland
“The wave of business transitions occurring throughout the economy represents a generational opportunity to reshape ownership in America. Only 2% of the nearly 600,000 middle-market companies in the US are employee owned. We see tremendous opportunity to grow both the number of ESOPs and ESOP participants over time. We are excited to be part of this movement and to build it as employee-owners, ourselves, alongside the entire team at 3LS.”
Michael Morosi
“Acquisitions power the creation of stronger, more resilient, and more valuable ESOPs, and 40 Million Owners is working to accelerate this trend. The National Center for Employee Owners (NCEO) estimates that acquisitions by ESOPs led to nearly 100,000 new employee owners over the past five years. Our goal is to equip ESOP leaders with the confidence and capability to execute acquisitions that create lasting value. By joining forces with 3LS, we can accelerate our vision for a world in which every employee is an owner.”
Mike Brady
