Warner Norcross + Judd LLP represented Traverse City-based North Arrow ABA in its transition to a 100% employee-owned company through an Employee Stock Ownership Plan, or ESOP.
Founded in 2020, North Arrow provides applied behavior analysis services for children and families affected by autism and related developmental disorders. The company’s mission emphasizes clinical excellence, ethical care and meaningful outcomes for the children and families it serves. North Arrow was also the first ABA provider in Michigan to earn accreditation from the Autism Commission on Quality.
The transaction makes North Arrow one of only a few employee-owned ABA service providers in the country. Through the ESOP, eligible employees will have the opportunity to acquire an ownership interest in the company at no direct cost and build long-term wealth as North Arrow grows.
North Arrow is also the first business to complete an employee-ownership transition through Michigan’s Transition to Employee Ownership Pilot Program. Administered by the Michigan Center for Employee Ownership in partnership with the Michigan Department of Labor and Economic Opportunity, the program helps Michigan businesses explore employee ownership as a succession strategy and economic development tool.
“This is about protecting who we are. Our employees are the heart of this organization,” North Arrow Founder Jonathan Timm said. “Becoming employee-owned allows us to build a future where the people providing care have a true stake in our clients’ and company’s success.”
North Arrow Executive Director Michael Dow said the ESOP aligns with the company’s emphasis on clinical quality, responsible growth and local decision-making. The new ownership structure is intended to preserve North Arrow’s community-based approach while giving employees a meaningful stake in its future.
The Warner legal team was led by Justin W. Stemple and included Philip Haywood and Lauren Maliszewski.
Warner’s ESOP Practice
Warner’s ESOP attorneys advise companies, business owners and trustees on the design, implementation and operation of employee stock ownership plans. Drawing on experience across employee benefits, corporate law, tax, finance and mergers and acquisitions, the team helps clients navigate the legal and practical considerations involved in using an ESOP for business succession, employee ownership and corporate growth.
