A law firm has launched an investigation into the board of Mister Car Wash Inc. (NASDAQ: MCW) over a pending $7 per share take-private sale, scrutinizing whether the deal breaches fiduciary duties to public shareholders.
Bleichmar Fonti & Auld LLP announced the probe on May 1, citing concerns that the buyout price offered by controlling stockholder Leonard Green & Partners, L.P. (LGP) is unfairly low. "With the ability to approve the sale of Mister Car Wash to itself, needing only its own votes, LGP is incentivized to execute the deal as cheaply as possible," BFA Law said in a statement.
The investigation follows new details disclosed in an April 3 SEC filing. BFA is questioning the independence of the special committee that negotiated the transaction, which was first announced on February 18, 2026. LGP, which already owns more than 66% of Mister Car Wash’s common stock, used its shares to approve the sale, with no further vote planned for public stockholders.
The legal challenge introduces significant uncertainty to the take-private deal, with the company’s stock trading at $7.08, just above the proposed buyout price. The core of the dispute is the valuation, particularly in light of the company's recent performance.
The investigation's timing is notable, coming just after Mister Car Wash reported strong first-quarter 2026 results on April 29. The company posted a 6% year-over-year revenue increase to $277.9 million and a 26.7% rise in net income to $34.2 million. The company’s popular Unlimited Wash Club program grew its membership by 11% to approximately 2.5 million members.
While the take-private offer values the company at $7.00 per share, at least one valuation model suggests a higher price. A discounted cash flow (DCF) analysis from Simply Wall St estimated an intrinsic value of approximately $9.05 per share, implying the offer is at a 21.8% discount. The company currently trades at a P/E ratio of 22.56x.
The investigation by BFA Law could force Leonard Green & Partners to raise its offer or potentially lead to the deal's collapse, creating significant volatility for the stock. Shareholders are being encouraged by the law firm to monitor the situation, with the next catalyst likely being any formal legal complaint or a revised offer from LGP.
This article is for informational purposes only and does not constitute investment advice.
