Clegg Auto: Driving Growth with Employee Ownership

Clegg Auto, a thriving group of four auto repair shops in Utah, faced the challenge of solidifying long-term success and empowering its employees—without compromising a fair market value for its founder, Steve Clegg.

Under the leadership of CEO Kevin Clegg, the company partnered with Common Trust to transition to an Employee Ownership Trust (EOT).

Just one year after making the shift, Clegg Auto doubled its profits, reached record-high customer satisfaction, and significantly increased employee pay and benefits—all while securing the company’s future.
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Envisioning a people-centric future

As CEO, Kevin Clegg had a clear vision for the company’s future. With a background in HR and a passion for people-focused leadership, he saw employee ownership as a way to build a more equitable and sustainable business.

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Exploring employee ownership options—and finding the right fit

During his search for the “perfect” employee ownership solution, Kevin explored options like Employee Stock Ownership Plans (ESOPs) and worker cooperatives—but found they didn’t quite align with the company’s structure or long-term goals.

Clegg Auto was looking for an approach that would:

• Support permanent employee ownership, not just a temporary transition‍
• Enable profit-sharing in a way that drives business growth, rather than relying on annual valuations or share appreciation

Once Kevin discovered the Employee Ownership Trusts (EOT) model through Common Trust, he knew he had found the right fit.

"The EOT structure offered the flexibility and customization we were looking for," Kevin noted. "It allowed us to design incentive structures that aligned with our goals and ensured long-term employee ownership."

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Designing an Employee Ownership Trust to fit their needs

Common Trust worked closely with Kevin and the Clegg Auto team to design and implement an employee ownership model, designed specifically for their needs. The structure established an Employee Ownership Trust as the sole shareholder of a holding company, with each auto shop operating as a subsidiary.

This approach allowed Clegg Auto to incentivize performance at both the shop level and company-wide, while offering flexibility in how profits were shared.

To help finance the deal and provide a fair exit for Steve, Common Trust offered a direct loan from their capital arm and brought in local private lenders to support the transaction. "Common Trust's expertise and financial support were instrumental in making the transition to employee ownership a reality," Kevin shared.

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Remarkable results in just one year

Twelve months after becoming employee-owned, Clegg Auto saw incredible growth:

• Over 100% increase in profits
• 15% rise in average employee pay through profit-sharing
• Record-high customer and employee satisfaction

"The EOT model has transformed our business," Kevin stated. "Our employees have taken a greater level of ownership, driving efficiencies and improving quality in ways we hadn't seen before."

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Empowering employees and securing the future

For Kevin, the transition to an Employee Ownership Trust extends beyond the short-term gains—it secures the future of the company he and his brother worked so hard to build.

"Seeing our employees thrive as owners and knowing that Clegg Auto will continue to succeed long into the future is incredibly rewarding," Kevin shared. "The EOT model has allowed us to create a lasting impact on our employees, our customers, and our community."

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Ready to explore employee ownership?

Common Trust partners with businesses across the country to design custom EOT transitions that prioritize people, performance, and long-term resilience.

Curious if an EOT could be the right fit for your business? Book a free advisory call to learn more.

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