For Employee Ownership Month, 3LS CEO Eric Strickland makes the case for employee ownership as a way for business owners to protect their legacy
In a guest column for the Nashville Area Chamber of Commerce, published to mark October as Employee Ownership Month, 3LS Inc. President and CEO Eric Strickland urges business leaders to consider employee ownership as they plan their next chapter.
Strickland roots the argument in his own family. His parents, Butch and Nancy, worked in the carpet industry for more than 45 years and retired with about $82,000 in savings. When the average retirement account balance at 3LS passed that same amount, Strickland began calling it “a dignity milestone” rather than a financial one.
He also points to the size of the opportunity. McKinsey estimates that roughly six million small and mid-size businesses will be on the market by 2035 as Baby Boomer owners retire. Tennessee is currently home to 95 employee-owned companies covering nearly 67,000 employees. Strickland acknowledges that an ESOP isn’t the right fit for every company. He lays out questions owners should ask first, including whether they want “a transition or a transaction.”
Strickland also describes acquisition by an existing employee-owned company as one of the fastest paths to employee ownership. He recommends the Tennessee Center for Employee Ownership as a starting point for Nashville leaders exploring the model.
Read the full column on the Nashville Area Chamber of Commerce blog here.