June 2026 Newsletter

MICEO UPDATES

PRIVATE EQUITY CONSOLIDATION IN THE TRADES

Have you noticed that private equity firms are increasingly acquiring and consolidating businesses in industries such as HVAC, plumbing, electrical, roofing, pest control, and landscaping? These sectors are attractive to investors because they provide essential services, enjoy steady demand, and remain highly fragmented, with many independently owned companies.

As business owners approach retirement, private equity firms often present themselves as a ready-made succession solution. Their strategy typically involves combining multiple businesses, investing in systems and operations, and creating larger organizations that can achieve greater scale and efficiency.

For owners considering their future, this trend highlights the importance of exploring ALL available transition options. While a sale to a private equity-backed buyer may be the right fit for some, employee ownership offers another path – one that can preserve a company's legacy, maintain local ownership, and reward the employees who helped build the business.

Read more about this trend: 

Private Equity Consolidation in the Trades

How private equity creates value in home services companies

FOCUS ON MICHIGAN

21ST CENTURY PLASTICS CORPORATIONS

21st Century Plastics Corporation is a 100% employee-owned, custom thermoplastics injection molding company located in Potterville, Michigan. Established in 1988, 21st Century Plastics Corp is an expert in manufacturing products and assemblies for the seating industry, including seating for cinema, auditorium, stadium, and office furniture. 21st Century Plastics Corp also molds products for the industrial, building, and construction industries, as well as sewer system and fire sprinkler system components. When its founder retired in 2010, 21st Century Plastics Corp also became an ESOP as the company was sold to its employees, making it 100% employee-owned. The motivation behind this decision was largely to keep the company in Potterville, as well as a desire to share the company's success with those who helped build it. Learn more: https://www.21stcpc.com/

If you'd like to learn more about transitioning your business to an employee ownership model, check out the resources on MICEO's website or reach out to Roy today!

EMPLOYEE OWNERSHIP FAQS

HOW WOULD AN ESOP WORK AT YOUR COMPANY?

Are you interested in adopting an employee stock ownership plan (ESOP)? The National Center for Employee Ownership (NCEO) has an interactive tool to explore employee stock ownership plans (ESOPs) for those wondering how an ESOP would work at their company. It begins with an overview, then branches into specifics based on how you answer questions about your company type, with a few quizzes along the way. You will learn what an ESOP is, why you might want to consider it, how to finance it, how ESOPs are governed, and how it might work given your company structure (C-corp, S-corp, or other). The goal is to clarify whether and how an ESOP would work in your situation and then suggest next steps.

Try out the tool for yourself: https://www.esop.org/education/interactive-introduction-esops.php 

EMPLOYEE OWNERSHIP RESOURCES

LEARN MORE ABOUT EO

Where EO Meets Economic Development w/Michael Darger – This episode of the Owners at Work podcast discusses business succession planning, ownership transition, and the growing importance of preserving locally owned businesses as Baby Boomer owners retire. 



New Research Reveals the Missing Link in Employee Ownership – Three bodies of work point to the same conclusion: ownership matters, but how people are managed and engaged matters far more. 

The Next Chapter of Business Succession – EO Equals discusses why business owners are exploring EO earlier. Millions of business owners across the country are approaching a major inflection point as they step away from the companies they built and transition to the next chapter of their lives.

The Power of a Partial ESOP – A Partial ESOP allows owners to sell a portion of their business while maintaining independence and company values—unlike private equity or strategic investors, which often bring outside influence and pressure for additional control. 

He Bought a 94-Year-Old Business, Then Gave it to the Team – In this episode of the Alternative Exit podcast, learn how, after transitioning a 94-year-old family business to an ESOP, Bob Whalen helped grow the company nearly tenfold and create more than $110M in employee-owner value while building a culture centered on shared success and long-term ownership.

Rutgers' New Employee Ownership Research-to-Practice Hub - Rutgers' Employee Ownership Applied Research Lab is a one-stop hub translating research into practical tools for broad-based employee ownership.