Halper Sadeh LLC Investigates Driven Brands Executives' Fiduciary Duties
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy DRVN?
Source: Globenewswire
- Legal Investigation Launched: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties to shareholders, potentially leading to corporate governance reforms and fund recovery.
- Shareholder Rights Protection: Long-term shareholders of Driven Brands may seek court-approved financial incentive awards or other relief measures, enhancing shareholder rights and company transparency.
- Importance of Participation: Shareholder involvement can improve company policies, practices, and oversight mechanisms, fostering a more transparent and effectively managed organization, which can enhance shareholder value and governance.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingent fee basis, meaning shareholders will not be responsible for out-of-pocket legal fees or expenses, reducing the financial burden of participation.
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Analyst Views on DRVN
Wall Street analysts forecast DRVN stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.670
Low
17.00
Averages
21.14
High
24.00
Current: 16.670
Low
17.00
Averages
21.14
High
24.00
About DRVN
Driven Brands Holdings Inc. is an automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change and maintenance. The Company's segments include Take 5 and Franchise Brands. The Take 5 segment is primarily composed of the Company and franchise-operated Take 5 Oil Change business. The Franchise Brands segment is primarily composed of its portfolio of franchise brands, which include CARSTAR, Meineke Car Care Centers, Maaco and 1-800-Radiator & A/C, along with other smaller brands and services for both retail and commercial customers such as commercial fleet operators and insurance carriers. Its AutoGlassNow businesses provide glass replacement and calibration services to commercial, retail and insurance customers. Its subsidiaries include All Star Glass, LLC, AGN Glass, LLC, Carstar Canada GP Corp, Boing US Holdco, Inc, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Halper Sadeh LLC Investigates Driven Brands Executives' Fiduciary Duties
- Legal Investigation Launched: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties to shareholders, potentially leading to corporate governance reforms and fund recovery.
- Shareholder Rights Protection: Long-term shareholders of Driven Brands may seek court-approved financial incentive awards or other relief measures, enhancing shareholder rights and company transparency.
- Importance of Participation: Shareholder involvement can improve company policies, practices, and oversight mechanisms, fostering a more transparent and effectively managed organization, which can enhance shareholder value and governance.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingent fee basis, meaning shareholders will not be responsible for out-of-pocket legal fees or expenses, reducing the financial burden of participation.
See More
Driven Brands Sells International Car Wash Business for €411 Million
- Transaction Completion: Driven Brands (DRVN) successfully closed the sale of its international car wash business for approximately €411 million, with proceeds primarily aimed at debt repayment, thereby enhancing the company's financial stability.
- Strategic Milestone: CEO Danny Rivera stated that this divestiture allows the company to focus on scaling its industry-leading Take 5 business and driving consistent cash generation from franchise brands, further enhancing shareholder value.
- Financial Reporting Changes: Starting in Q4 2025, Driven Brands will report the financial results of the car wash segment as discontinued operations, while Auto Glass Now will be reported as a standalone segment, optimizing financial transparency.
- Stock Performance: Driven Brands (DRVN) shares rose 6.5% in early 2026, reflecting positive market sentiment towards the company's strategic adjustments and boosting investor confidence.
See More
Driven Brands Completes Sale of International Car Wash Business
- Strategic Milestone: Driven Brands has completed the sale of its international car wash business to Franchise Equity Partners for approximately €411 million, allowing the company to focus on scaling its core Take 5 business and enhancing cash generation capabilities.
- Balance Sheet Optimization: This divestiture simplifies Driven Brands' portfolio and strengthens its balance sheet, with cash proceeds primarily aimed at debt reduction, thereby enhancing financial stability and creating further value for shareholders.
- Financial Reporting Adjustments: The company plans to report the car wash segment as discontinued operations starting in Q4 2025, while Auto Glass Now will be reported as a standalone segment, reflecting the updated business structure post-divestiture.
- Future Outlook: Driven Brands expects to file a Form 8-K with the SEC in mid-February 2025, providing unaudited historical recast quarterly financial results for the first three quarters of fiscal 2025, showcasing the company's financial performance following the completion of this business divestiture.
See More
Secure Properties Acquires 15-Property Take 5 Oil Change Portfolio, Expanding Automotive Services
- Acquisition Deal: Secure Properties has successfully acquired a 15-property portfolio from Take 5 Oil Change through a long-term sale-leaseback with Driven Brands, marking a significant expansion in the automotive services sector and reinforcing its market position.
- Market Coverage: The properties are located in high-growth markets across the South and Midwest, ensuring Secure's strategic positioning in the rapidly growing automotive services industry to meet increasing market demand.
- Long-Term Leases: Each property is backed by a new long-term NNN lease, aligning with Secure's investment strategy focused on acquiring durable, operationally essential real estate that supports category-leading operators, ensuring stable cash flows.
- Strategic Partnership: Brian Mansouri, Secure's Chief Investment Officer, stated that this acquisition reflects the ongoing growth of long-term partnerships with leading operators, further enhancing its role as a reliable capital partner for multi-site operators.
See More
Emeth Value Capital Acquires 582,255 Shares of Driven Brands for $8.66 Million
- Share Acquisition: Emeth Value Capital increased its stake in Driven Brands by 582,255 shares during Q4, amounting to an estimated $8.66 million transaction, signaling confidence in the company's future cash generation potential.
- Asset Allocation: Driven Brands now represents 70.4% of Emeth's reportable AUM, indicating its significance and concentration within the investment portfolio.
- Financial Performance: Driven Brands reported $535.7 million in revenue for the most recent quarter, a 6.6% year-over-year increase, with adjusted EBITDA reaching $136.3 million, demonstrating stable growth in the market.
- Market Performance: Despite a 4.7% decline in Driven Brands' stock price over the past year, the company's ongoing same-store sales growth and improved net leverage ratio of 3.8x suggest strong fundamentals, providing long-term investors with potential returns.
See More
Emeth Value Capital Increases Driven Brands Stake by 582,255 Shares Worth $8.66 Million
- Share Increase: Emeth Value Capital acquired an additional 582,255 shares of Driven Brands in Q4, with an estimated transaction value of $8.66 million, resulting in Driven Brands comprising 70.4% of its portfolio, indicating strong confidence in the company's growth prospects.
- AUM Growth: This purchase increased the quarter-end value of Emeth's stake in Driven Brands by $4.26 million, reflecting the dual impact of new share accumulation and price changes, further solidifying its significance in the investment portfolio.
- Strong Financial Performance: Driven Brands reported $535.7 million in revenue for the latest quarter, a 6.6% year-over-year increase, with adjusted EBITDA reaching $136.3 million, showcasing its sustained growth potential in the automotive services market.
- Market Underperformance: Despite Driven Brands' stock price declining by 4.7% over the past year and trailing the S&P 500 by 22.5 percentage points, its consistent same-store sales growth and improved net leverage ratio of 3.8x indicate robust underlying fundamentals.
See More
Halper Sadeh LLC Investigates Driven Brands Executives' Fiduciary Duties
- Legal Investigation Launched: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties to shareholders, potentially leading to corporate governance reforms and fund recovery.
- Shareholder Rights Protection: Long-term shareholders of Driven Brands may seek court-approved financial incentive awards or other relief measures, enhancing shareholder rights and company transparency.
- Importance of Participation: Shareholder involvement can improve company policies, practices, and oversight mechanisms, fostering a more transparent and effectively managed organization, which can enhance shareholder value and governance.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingent fee basis, meaning shareholders will not be responsible for out-of-pocket legal fees or expenses, reducing the financial burden of participation.
See More
Driven Brands Sells International Car Wash Business for €411 Million
- Transaction Completion: Driven Brands (DRVN) successfully closed the sale of its international car wash business for approximately €411 million, with proceeds primarily aimed at debt repayment, thereby enhancing the company's financial stability.
- Strategic Milestone: CEO Danny Rivera stated that this divestiture allows the company to focus on scaling its industry-leading Take 5 business and driving consistent cash generation from franchise brands, further enhancing shareholder value.
- Financial Reporting Changes: Starting in Q4 2025, Driven Brands will report the financial results of the car wash segment as discontinued operations, while Auto Glass Now will be reported as a standalone segment, optimizing financial transparency.
- Stock Performance: Driven Brands (DRVN) shares rose 6.5% in early 2026, reflecting positive market sentiment towards the company's strategic adjustments and boosting investor confidence.
See More
Driven Brands Completes Sale of International Car Wash Business
- Strategic Milestone: Driven Brands has completed the sale of its international car wash business to Franchise Equity Partners for approximately €411 million, allowing the company to focus on scaling its core Take 5 business and enhancing cash generation capabilities.
- Balance Sheet Optimization: This divestiture simplifies Driven Brands' portfolio and strengthens its balance sheet, with cash proceeds primarily aimed at debt reduction, thereby enhancing financial stability and creating further value for shareholders.
- Financial Reporting Adjustments: The company plans to report the car wash segment as discontinued operations starting in Q4 2025, while Auto Glass Now will be reported as a standalone segment, reflecting the updated business structure post-divestiture.
- Future Outlook: Driven Brands expects to file a Form 8-K with the SEC in mid-February 2025, providing unaudited historical recast quarterly financial results for the first three quarters of fiscal 2025, showcasing the company's financial performance following the completion of this business divestiture.
See More
Secure Properties Acquires 15-Property Take 5 Oil Change Portfolio, Expanding Automotive Services
- Acquisition Deal: Secure Properties has successfully acquired a 15-property portfolio from Take 5 Oil Change through a long-term sale-leaseback with Driven Brands, marking a significant expansion in the automotive services sector and reinforcing its market position.
- Market Coverage: The properties are located in high-growth markets across the South and Midwest, ensuring Secure's strategic positioning in the rapidly growing automotive services industry to meet increasing market demand.
- Long-Term Leases: Each property is backed by a new long-term NNN lease, aligning with Secure's investment strategy focused on acquiring durable, operationally essential real estate that supports category-leading operators, ensuring stable cash flows.
- Strategic Partnership: Brian Mansouri, Secure's Chief Investment Officer, stated that this acquisition reflects the ongoing growth of long-term partnerships with leading operators, further enhancing its role as a reliable capital partner for multi-site operators.
See More
Emeth Value Capital Acquires 582,255 Shares of Driven Brands for $8.66 Million
- Share Acquisition: Emeth Value Capital increased its stake in Driven Brands by 582,255 shares during Q4, amounting to an estimated $8.66 million transaction, signaling confidence in the company's future cash generation potential.
- Asset Allocation: Driven Brands now represents 70.4% of Emeth's reportable AUM, indicating its significance and concentration within the investment portfolio.
- Financial Performance: Driven Brands reported $535.7 million in revenue for the most recent quarter, a 6.6% year-over-year increase, with adjusted EBITDA reaching $136.3 million, demonstrating stable growth in the market.
- Market Performance: Despite a 4.7% decline in Driven Brands' stock price over the past year, the company's ongoing same-store sales growth and improved net leverage ratio of 3.8x suggest strong fundamentals, providing long-term investors with potential returns.
See More
Emeth Value Capital Increases Driven Brands Stake by 582,255 Shares Worth $8.66 Million
- Share Increase: Emeth Value Capital acquired an additional 582,255 shares of Driven Brands in Q4, with an estimated transaction value of $8.66 million, resulting in Driven Brands comprising 70.4% of its portfolio, indicating strong confidence in the company's growth prospects.
- AUM Growth: This purchase increased the quarter-end value of Emeth's stake in Driven Brands by $4.26 million, reflecting the dual impact of new share accumulation and price changes, further solidifying its significance in the investment portfolio.
- Strong Financial Performance: Driven Brands reported $535.7 million in revenue for the latest quarter, a 6.6% year-over-year increase, with adjusted EBITDA reaching $136.3 million, showcasing its sustained growth potential in the automotive services market.
- Market Underperformance: Despite Driven Brands' stock price declining by 4.7% over the past year and trailing the S&P 500 by 22.5 percentage points, its consistent same-store sales growth and improved net leverage ratio of 3.8x indicate robust underlying fundamentals.
See More
