Gov. Whitmer celebrates Michigan Employee Ownership Pilot Momentum with Seven Businesses Formally Committing to Transition

First participant completes transition, demonstrating program’s impact on preserving local businesses, creating wealth-building opportunities and strengthening communities 

TRAVERSE CITY, Mich.—One year after launching a first-of-its-kind pilot program to expand employee ownership opportunities across Michigan, the Michigan Department of Labor and Economic Opportunity (LEO) and the Michigan Center for Employee Ownership (MICEO) are celebrating significant progress toward helping businesses remain locally owned while creating new opportunities for workers. 

“Michigan is on the move and open for business, and as we grow our economy we’re committed to helping more Michiganders succeed,” said Gov. Gretchen Whitmer. “Employee ownership gives employees a stake in the businesses they help build, forging stronger companies, better opportunities, and local communities. Let’s keep working together to help more small businesses and working families ‘make it’ in Michigan.” 

Since its launch in 2025, the $500,000 Transition to Employee Ownership Pilot Program has generated strong interest from business owners across the state, with 10 grants provided to businesses to explore employee ownership as an option. Today, 7 Michigan businesses representing a variety of industries and regions are now committed to completing transitions to employee ownership. Together, these organizations represent over 600 Michigan employees across manufacturing, healthcare, architecture, education, childcare, and professional services.  One of those businesses, North Arrow ABA, recently became the first company to complete its transition through the program. 

“Investing in employee ownership is an investment in the long-term success of Michigan’s businesses, workers and economy,” said LEO Director Susan Corbin. “The early results from the Employee Ownership Pilot show that small investments have big returns - by removing financial barriers to exploring employee ownership, businesses are seeing the value of this option and are acting on it. North Arrow ABA’s successful transition demonstrates the impact this model can have for employees, employers and local economies.” 

The pilot program was created to address a growing challenge facing businesses nationwide. As tens of thousands of business owners approach retirement, many lack a succession plan. Employee ownership offers an alternative path that allows businesses to preserve jobs, retain local ownership and reward employees for helping build successful companies. 

When the program launched, LEO and MICEO highlighted the need for innovative solutions to a looming succession challenge: 

• Approximately 75% of business owners plan to exit their businesses within the next decade. 

• Only about one-third have a documented succession plan. 

• Fewer than one-third successfully sell their businesses through traditional means. 

By transitioning ownership to employees, businesses create an internal succession pathway that helps maintain continuity, preserve jobs and keep economic benefits rooted in local communities. 

The pilot program, administered by MICEO, provides participating businesses with support for financial evaluations, feasibility studies, legal services and technical assistance needed to determine whether employee ownership is the right fit and successfully execute a transition. 

“This milestone reflects growing awareness among Michigan business owners that employee ownership can be a practical and successful succession strategy,” said MICEO Executive Director Roy Messing. “We’re excited to see so many companies taking meaningful steps toward employee ownership and proud to celebrate North Arrow ABA as the first company to complete a transition through the program. Employee ownership helps preserve local businesses, reward the employees who contribute to their success and create stronger, more resilient communities.” 

First Business Completes Transition 

The first businesses supported through the program to complete its transition is North Arrow ABA, a Traverse City-based provider of Applied Behavior Analysis (ABA) services for children and families affected by autism and related developmental disorders. 

Founded in 2020, North Arrow ABA recently became a 100% employee-owned company through an Employee Stock Ownership Plan, becoming one of the nation’s only employee-owned company focused exclusively on ABA services. 

The company has grown with a mission centered on clinical excellence, ethical care and meaningful outcomes for children and families. Leadership said the move to employee ownership was designed to preserve the organization’s community-based approach while ensuring employees have a direct stake in their future success. 

“This is about protecting who we are,” said North Arrow ABA Founder Jonathan Timm, M.S., BCBA, LBA. “Our employees are the heart of this organization. Becoming employee owned allows us to build a future where the people providing care have a true stake in our clients’ and company success, as well as a meaningful voice in our future strategy and growth. We built this company from day one with employee ownership in mind and with a very collaborative and transparent leadership culture.” 

An Employee Stock Ownership Plan functions as a qualified retirement benefit that invests in company stock on behalf of employees, providing an ownership stake at no cost to them. Through this structure, employees have the opportunity to build long-term wealth alongside the organization’s success. 

“We’re thrilled to bring an employee-ownership model to the ABA industry,” said North Arrow ABA Executive Director Michael Dow. “We felt that an Employee Stock Ownership Plan best aligned with our values and emphasis on clinical quality, responsible growth and local decision-making. As the field continues to evolve, we hope to see more clinically centered ownership models move to the forefront.” 

“North Arrow ABA represents exactly the kind of outcome we hoped this program would help make possible,” said Acting Deputy Director of Labor Randall Harrison. “Baby boomers own roughly half of Michigan businesses, and transitions to employee ownership offer a powerful way to ensure businesses remain rooted in the communities they serve. North Arrow’s success demonstrates how employee ownership can preserve a company’s mission, reward employees and create long-term stability.” 

Building a Stronger Michigan Economy 

Employee ownership continues to deliver benefits for workers, businesses and communities alike. Research shows employee-owned firms often experience higher productivity, stronger business performance and increased resilience during economic challenges. Employee-owners also tend to earn higher wages, receive greater access to benefits and training opportunities, and build more long-term wealth than their peers. 

As additional businesses move through the transaction process, LEO and MICEO will continue working together to expand awareness of employee ownership as a proven business succession strategy and economic development tool. 

For more information about employee ownership opportunities in Michigan, visit Michigan.gov/EmployeeOwnership.