THE TAPE | Issue 022 | October 2026

Welcome to the week. We are tracing how Bob Moore sold Bob's Red Mill to its employees over a decade instead of accepting an outside buyer, a Stone Mountain landscaping business asking $300,000 at 3.75x cash flow, and new Connecticut employment rules affecting hiring, compensation, and employee agreements.

In 2010, Bob Moore turned down offers to sell Bob's Red Mill and instead began transferring the business to its 209 employees. The company had grown from a small Oregon grain mill into a national food brand, with products stocked by major retailers. Moore could have sold to an outside buyer, but he wanted the people who helped build the business to own it. He transferred the first third of the company on his 81st birthday and spent the next decade selling the remaining shares. By April 2020, Bob's Red Mill was entirely employee-owned, with approximately 700 employees participating in the ownership plan.

Moore's interest in milling began while he was managing an auto shop for J.C. Penney in Redding, California. A library book about restoring an old grain mill inspired him to pursue the business. In 1974, he and his wife, Charlee, opened Moores' Flour Mill in Redding, using traditional millstones acquired from a defunct mill in North Carolina. They eventually left that business to their sons and moved to Oregon, where they opened Bob's Red Mill in Milwaukie in 1978. The company initially served local customers before expanding into grocery stores. In 1988, a fire suspected to be arson destroyed the original mill. The Moores reopened the following year in a larger facility.

The idea of sharing the business with employees emerged long before Moore considered retirement. Around 1983, several employees approached him about purchasing an ownership stake. Instead, he introduced a profit-sharing program that distributed money according to employees' tenure and wages. Initially, the company could afford payments only a few times a year. As profits increased, payments became more frequent, and by around 1990, eligible employees were receiving monthly profit-sharing checks.

Meanwhile, Bob's Red Mill was expanding beyond specialty natural-food stores. Fred Meyer began carrying its products in 1982, and the company later secured distribution through major national retailers. By 2004, annual revenue was estimated at more than $24 million. Growth attracted acquisition interest, but Moore resisted selling to an outside buyer. He wanted the company to remain independent and believed employees who had helped build it should benefit from its success.

On February 15, 2010, Moore's 81st birthday, he established an employee stock ownership plan, or ESOP, for the company's 209 employees. The initial transaction transferred approximately one-third of the business into employee ownership. Rather than requiring employees to purchase shares themselves, the ESOP held company stock in a retirement trust for eligible participants. 

The remaining ownership transferred through a series of financial transactions over the following decade. Moore remained involved while the business prepared for leadership beyond its founder. In 2018, he stepped down as CEO, and Dennis Vaughn succeeded him. By April 30, 2020, Bob's Red Mill had completed the transition to 100% employee ownership and employed approximately 700 people.

Moore continued serving on the board after relinquishing ownership. When he died in February 2024 at age 94, the business offered more than 200 products distributed in more than 70 countries. The company remained headquartered in Milwaukie.

Moore needed a way to transfer the financial value of his business while preserving its independence, and the company needed leadership capable of operating without him. The gradual sale allowed both transitions to happen over time. Employees became owners through the retirement plan, while management responsibility passed to executives before the final ownership transfer.

For owners considering a similar exit, an ESOP introduces requirements that differ from a conventional sale. An independent valuation helps establish the price the employee trust can pay, while the company's ability to finance the purchase and meet future retirement obligations affects how the transaction can be structured. Bob's Red Mill demonstrates how a founder can sell a business to employees over time while putting new leadership in place to manage the company after the transition.

Stone Mountain landscaping company asks $300K on $80K cash flow

Asking price: $300,000, including about $95,000 of vehicles and equipment
Annual revenue: $235,000
Cash flow: $80,000 SDE
EBITDA: $50,000
Asking multiple: 3.75x SDE, or 6.0x EBITDA
Recurring revenue: About 60%
Seller support: 30 to 180 days, with seller financing available

The company was established in 1988. It is based in Stone Mountain, Georgia, and serves upscale homes across the Atlanta market. Typical customers spend about $300 to $600 a month, and no single account accounts for more than about 5% of revenue. The retiring owner works with three 1099 contractors and adds others as needed.

Translation, if you own one: If you own a landscaping business, consider whether your maintenance customers also buy higher-margin services such as mulching, seasonal planting, and lawn treatments. These additional services can increase revenue from existing customers without requiring new customer acquisition, provided crews can complete them profitably alongside scheduled maintenance.

Connecticut's Public Act 26-12 took effect on October 1, 2026, introducing new hiring, compensation, and employment rules. Most provisions apply to every employer in the state, regardless of company size. Businesses hiring now must include a wage or good-faith wage range and a general description of benefits in every internal and external job posting. The requirement also covers positions outside Connecticut that report to a supervisor or office in the state.

The law also extends the state's restrictions on employee promissory notes to employers of all sizes. Previously, the prohibition applied only to businesses with more than 25 employees. Training repayment agreements signed on or after October 1 are now void if they fall within the prohibition. For example, a repair shop requiring new technicians to repay $5,000 in training costs if they leave early could no longer enforce a prohibited agreement. Employers with at least 100 workers must also publish explanations of their overtime and pay-differential codes.

Every employer must also notify existing employees of their right to disability accommodations by January 29, 2027. New hires must receive notice when employment begins, and employees who disclose a disability must receive it within 10 days. Employers can satisfy the requirement by displaying the state-approved notice in an accessible location.

An accountant bought a Florida escape room for $220,000 after earnings fell 43% and began turning it around, and a Wyoming specialty retail store is asking $780,000, including $300,000 in inventory.