After nearly 50 years in the motor trade, and more than three decades building Inverness-based Anderson Clark Motor Repairs into an award-winning powerhouse, Graham Clark is finally hanging up his workshop keys.
But while many garage owners face the dilemma of selling out to an external buyer or simply winding down, Graham chose a distinctly different succession route: an Employee Ownership Trust (EOT).
The move not only protects the legacy of the business and secures the livelihoods of the 14-strong team, but it also offers a practical, real-world blueprint for workshop owners contemplating their own retirement strategy.
Protecting Culture Over Pure Profit
When planning his exit, Graham considered the standard options: an outright commercial sale, a management buyout, or closure.
A trade sale to an outside party, however, brought unacceptable risks. “I was thinking about protecting the staff,” Graham explained in an exclusive interview with Garage Matters.
“Let’s imagine we got a new owner who didn’t have the same mindset as I’ve drilled into the business, who purely wants to take profit out of the company and chases profit as opposed to great customer service. If the staff aren’t happy, the quality of work slips, and that leads to bad reviews. The Employee Ownership Trust was by far the fairest thing for everybody.”
Under the EOT framework, 100% of the company ownership transfers to a trust held on behalf of the employees.
It ensures long-serving staff remain employed under familiar working conditions, while also allowing team members to receive annual qualifying bonuses of up to £3,600 tax-free.
The Legal and Financial Mechanics
The legal and financial mechanics
Transitioning a workshop into an EOT is straightforward when supported by specialist advisors.
Company Valuation & Funding: The agreed purchase price is paid to the outgoing shareholders over five years from ongoing company profits. Surplus cash in the business accounts was extracted at the transaction stage.
Premises: The business premises remain owned by the shareholders and are leased back to the garage on a 10-year term with renewal options.
Tax Rules: At the time of execution, the sale was free from Capital Gains Tax (CGT). Graham notes that business owners must adhere strictly to qualifying criteria, including the shareholder-to-employee ratio (shareholders and close family must represent no more than 40% of total staff, held for a full tax year post-completion).
MOT Entity Continuity: Because Anderson Clark Motor Repairs remains the same limited company entity, there was no requirement to re-apply for MOT authorisation as a new entity or replace testing equipment. The business simply updated the DVSA regarding director appointments and resignations.
Phased leave
Rather than walking out the door overnight, Graham structured a gradual 24-month exit to ensure leadership continuity and safeguard performance.
Day-to-day operations have been handed to an internal management team consisting of Managing Director Designate Neil Johnston, Workshop Manager Alan Reid, and Company Secretary Katie Fraser.
“I’ve transitioned myself, reducing days and working hours over two years,” Graham said. “It gives the team a chance to step up into the responsibilities rather than finishing on a Friday and leaving them at loose ends. They are running a well-oiled machine.”
The Next Chapter
For Graham, the immediate focus is family, travel, and enjoying free time away from day-to-day workshop pressures—though he admits he will keep tinkering with cars just for fun.
His advice to other independent garage owners reaching retirement age is simple: plan early and take proper advice.
“There are lots of people in my generation thinking, ‘I don’t know how to get out of this.'” With the EOT model, Graham Clark has proved that stepping back doesn’t mean leaving the business or its people behind.
