Steel Partners Opposes InMode Management Buyout Proposal

Steel Partners, a prominent investment entity, has publicly declared its opposition to a management-led buyout proposal for InMode, a medical technology company. This firm contends that the current offer, put forth by InMode's co-CEOs and certain board members, substantially diminishes shareholder value. According to Seeking Alpha, the proposed transaction would see InMode's co-CEOs, Moshe Mizrachy and Yair Malca, along with board members Dr. Michael Kreindel and Dr. Shimon Eckhouse, acquire all outstanding shares they do not already possess for $32 per share. Steel Partners currently holds a significant stake in InMode, owning 6.3% of the company's shares. The investment group articulated its disapproval in a formal letter directed to InMode’s board of directors. In this communication, Steel Partners highlighted several critical points, including the timing of the offer and its perceived inadequacy in reflecting InMode's intrinsic worth and future growth potential. The firm specifically pointed out that the $32 per share offer represents a mere 5% premium over InMode's closing stock price on the day immediately preceding the submission of the offer. This premium is considered insufficient by Steel Partners, especially given the company's strong market position and innovative product lineup. Steel Partners emphasized InMode’s robust financial performance and its leading role in the aesthetic and medical technology industry. The firm believes the company’s ongoing success and promising outlook are not adequately factored into the proposed buyout price, suggesting a much higher valuation is warranted. The letter from Steel Partners also raised questions about the governance aspects of the proposed buyout, particularly concerning the involvement of current management in a transaction that could benefit them personally at what the firm views as the expense of public shareholders. The investment firm urged the independent members of InMode’s board to carefully review the offer and consider alternatives that would better serve the interests of all shareholders.