Key Points
- 1st Choice Accident Repair Centre, one of the UK’s largest motor vehicle repair facilities based on Ipswich Road in Cardiff, has completed a new management buy-out (MBO) part-funded by a £600,000 investment from UK Steel Enterprise.
- The transaction represents a successful exit for the Development Bank of Wales exactly eight years after its support for the company’s original MBO in 2018 .
- The business, now a £5 million operation employing 37 people, serves insurers, original equipment manufacturers (OEMs), and customers across the region, following expansion including a 30,204 sq ft flagship facility opened in 2022 with a £975,000 Development Bank loan .
- Executive Chairman Mervyn Ham leads the strengthened management team; founding MBO lead Mike Summers transitions to Senior Advisor to the Board while retaining an equity stake, with over 45 years’ sector experience .
- Eight employees become shareholders; new board members include Calum Young (from 2018 MBO team), Matthew Willecome, Joe Callaghan, and Natalie Willecome, bringing expertise in operations, commercial performance, and leadership .
- Mervyn Ham commented on sector pressures like rising repair costs and complex vehicle technology, noting the MBO signals continuity and a shared-ownership model blending employee engagement with performance focus .
- Mark Halliday of the Development Bank of Wales highlighted the eight-year relationship providing equity, debt, and property finance .
- Michelle Noble, Area Manager at UK Steel Enterprise (UKSE), praised the team’s leadership, growth strategy, and commitment to quality .
Cardiff (Cardiff Daily) April 13, 2026 – 1st Choice Accident Repair Centre has completed a management buy-out part-funded by UK Steel Enterprise, marking the Development Bank of Wales’ exit after eight years of support.
What Triggered This Management Buy-Out at 1st Choice?
The latest MBO builds on the company’s history of growth and prior transactions backed by the Development Bank of Wales. As reported by Mark Halliday, Senior Portfolio Executive at the Development Bank of Wales, in their official announcement,
“1st Choice Accident Repair Centre, one of the UK’s largest motor vehicle repair facilities, has completed a management buy-out (MBO) part-funded by an investment of £600,000 from UK Steel Enterprise. The transaction marks a successful exit for the Development Bank of Wales exactly eight years after supporting the company’s original MBO in 2018” .
The business, located on Ipswich Road in Cardiff, expanded significantly with the opening of a 30,204 sq ft flagship facility in 2022, funded by a £975,000 loan from the Development Bank. It now employs 37 people and operates as a £5 million enterprise serving insurers, OEMs, and regional customers . This follows the original 2018 MBO, detailed in a Wales247 report, where directors Michael Summers, Calum Young, and Sion Coughlin completed a £2.1 million buy-out of the then £3 million business, part-financed by £1.1 million equity from the Development Bank through the Wales Management Succession Fund. Mervyn Ham of Iridium also took an equity stake and became Chairman at that time.
In the new structure, Executive Chairman Mervyn Ham — previously Non-Executive Chairman and principal advisor — leads a team with deep expertise. Mike Summers, with over 45 years’ experience, becomes Senior Advisor while retaining equity. Eight employees are now shareholders, and the board includes Calum Young, Matthew Willecome, Joe Callaghan, and Natalie Willecome .
Who Are the Key Figures in the New Ownership Structure?
Mervyn Ham, now Executive Chairman, emphasised the strategic context. As quoted by Mark Halliday of the Development Bank of Wales, Mervyn Ham stated:
“1st Choice operates in a sector facing well-documented pressures — rising repair costs, increasingly complex vehicle technology and the need for continuous investment in skills and performance standards. The business has consistently positioned itself at the forefront of these challenges through investment, strong governance and a commitment to high-quality repair excellence” .
He added:
“Eight years on from the company’s first buy-out, today’s milestone signals continuity, confidence and a broader ownership model designed to support long-term resilience and growth. As a shared-ownership model, this deal blends the engagement and loyalty often seen in employee-owned firms with the discipline and performance focus commonly associated with private equity-led structures” .
Ham further noted:
“The Development Bank has been an excellent partner over the past eight years, providing equity, debt and property finance that has helped drive 1st Choice’s growth. This MBO represents the next chapter — an opportunity for the management team and our employee shareholders to build on strong foundations and take the business forward with real ambition. Most of the team started as apprentices, and we are now fully committed to supporting them as owners” .
Mark Halliday of the Development Bank of Wales commented:
“Our relationship with 1st Choice spans eight years and reflects the full breadth of what the Development Bank can offer — from equity to debt and property finance. The team has grown the business into a market-leading operation, and this transaction marks a strong and successful exit for us. We’re proud to have supported their journey and wish the new management team every success as they take the business forward” .
Michelle Noble, Area Manager at UK Steel Enterprise, said:
“We’re delighted to support the management buy-out at 1st Choice Accident Repair Centre. The team has demonstrated strong leadership, a clear growth strategy and an unwavering commitment to high-quality service. Their continued investment in people, technology and operational excellence has positioned the business as a leading repair centre in the region. This transaction represents exactly the type of ambition UKSE aims to back — a skilled local team building a resilient, future-focused business with long-term potential. We’re proud to play a part in their next chapter and look forward to seeing the company continue to grow and contribute to the local economy” .
Historical comments from the 2018 MBO, as reported on Wales247, include Michael Summers stating:
“It was great to see how flexible and accommodating the development bank was when structuring this transaction, and the experience of Mervyn at Iridium as a real business owner is invaluable”.
Mervyn Ham added then:
“This is a great team to work with, and once again the Development Bank of Wales shows itself to be the default creator of opportunity for owners and management teams in Wales”.
How Has 1st Choice Grown Over the Years?
Established in 2002 as a purpose-built accident repair workshop on Ipswich Road, Cardiff, 1st Choice became an approved repairer for major insurance providers, offering accident management, 24-hour recovery, claims management, courtesy vehicles, and warranty assurance. The 2018 MBO valued it at £3 million. By 2022, as covered on Wales247, it acquired a larger 30,204 sq ft site on the same road, previously occupied by Sytner, funded by a £975,000 Development Bank loan. This move aimed to create up to 20 new jobs (with 31 staff transferring), expand services to wheel repairs, tyres, fleet maintenance, vehicle servicing, and consider EV charging.
Mike Summers, then a director, said in 2022:
“Our long-term business strategy is based on adding value for our customers and shareholders so it’s important that we continue to invest in our property and processes to improve operational efficiency and expand our offering. As our equity partners, the Development Bank has continued to support us with our strategic growth while we have adapted to the challenges of owning a business and weathered the storm of Covid-19″.
Mervyn Ham noted:
“1st Choice is no longer just a car body repair shop. The team has done exceptionally well; coming up from the shop floor and grasping the opportunity to drive the business forward even through periods of uncertainty. This strategically important investment now allows us to take the business to the next stage; creating real flow and therefore improving efficiency together with giving us the space to expand our services and expand our portfolio of insurance providers”.
Mark Halliday added in 2022:
“This is a great example of how we work with our equity portfolio customers to help drive growth and long-term value for all. The new site is nearly twice the size of the current workshop and offers a much better layout that will enable the business to increase through-put and efficiency”.
Legal advisors in 2018 included Laura Herdman of Capital Law for the management team, and others like Hugh James, Seamus Gates of Broomfield Alexander for vendors, and Geraint Tilseley and James Vaughan of Geldards for the bank.
Background of the Development
1st Choice Accident Repair Centre was founded in 2002 on Ipswich Road, Cardiff, initially as a workshop for cars and small vehicles. The first MBO occurred in 2018 for £2.1 million, led by directors Michael Summers, Calum Young, and Sion Coughlin, with £1.1 million equity from the Development Bank of Wales via the Wales Management Succession Fund, and Mervyn Ham joining as Chairman. Expansion followed, including the 2022 site acquisition doubling capacity and planning job creation. The Development Bank’s support encompassed equity, debt, and property finance over eight years, enabling growth to a £5 million, 37-employee operation .
Prediction for Local Businesses and Employees
This development provides the management team and eight employee-shareholders with greater control, potentially enabling faster decision-making on investments in skills and technology amid rising repair costs and vehicle complexity . For local businesses in Cardiff’s automotive sector, it demonstrates a model of succession through MBOs backed by funds like UK Steel Enterprise and the Development Bank, which could encourage similar transitions while contributing to the regional economy via sustained employment and service expansion. Employees gain ownership stakes, fostering loyalty and alignment with performance goals, which may support job stability and training opportunities as the company targets resilience . Insurers and customers in South Wales could benefit from continued high-quality repairs if the broader ownership sustains operational excellence .
