The Alternative Exit podcast recently sat down with Eric Strickland, CEO of 3LS, to explore a powerful and increasingly relevant question: What happens when you combine employee ownership with human services?
Listen to the full episode of The Alternative Exit podcast with Eric Strickland here.
In this episode, Eric reflects on his 20-year journey, from joining Omni Visions as CFO in 2005 to becoming CEO of 3LS, a purpose-driven organization of 18 employee-owned companies with nearly 800 employee owners across five states. He shares the story behind the rare “ESOP-to-ESOP” leveraged buyout that launched 3LS and the philosophy that guides its growth today.
Inside the Episode
Eric and host Andy Farquharson cover a wide range of topics shaping the future of employee ownership in mission-focused organizations, including:
- Why Omni Visions needed a second ESOP and what led to the creation of 3LS
- How Eric frames employee ownership as a retirement asset allocation problem
- The vertical integration strategy, turning operating expenses into new employee-owned businesses
- Why culture must be intentionally invested in, from quarterly town halls to transparent communication
- How frontline creativity drives innovation in human services
- Common myths about ESOPs, including perceived complexity and cost
- Why ESOP value takes time to build, especially for early-career employees
Throughout the conversation, Eric offers a candid look at the opportunities and challenges of building wealth for employees in fields where people are driven by purpose, not payout.
Key Timestamps
- 00:00 – Introduction and Eric’s background
- 03:00 – The first ESOP and why it closed to new participants
- 07:00 – The rare ESOP-to-ESOP leveraged buyout
- 12:00 – The Three Ls and vertical integration
- 20:00 – Investing in culture and building trust
- 30:00 – Frontline-driven innovation
- 36:00 – Innovation through asset allocation
- 39:00 – Common ESOP myths
- 45:00 – Quickfire questions and final advice