Steel Partners comes out against `value-destructive' CEO-led buyout offer for InMode

[M&A Mergers And Acquisitions]
narvo vexar

Steel Partners, whose $18 offer to buy InMode was rejected in February, [https://seekingalpha.com/pr/20408580-inmode-announces-conclusion-of-independent-transaction-committee-review] said it has “serious concerns” about a $16.20 CEO-led buyout offer. [https://seekingalpha.com/news/4606678-inmode-stock-rises-unsolicited-buyout-offer]

"Let us be direct," Steel Partners Executive Chairman Warren G. Lichtenstein wrote in a letter [https://www.businesswire.com/news/home/20260629203388/en/Steel-Partners-Holdings-L.P.-Issues-Letter-to-InMode-Ltd.-Board-of-Directors-Highlighting-Serious-Concerns-with-Value-Destructive-CEO-Led-Buyout-Proposal]to InMode's board on Tuesday. "What we have seen at InMode over the last six months is a series of disastrous governance failures that have created a situation wherein its own CEO may be able to acquire the Company at a price below what the Board previously rejected. Allowing this to happen would be a travesty for shareholders."

Steel Partners is calling on the board to retain a “truly independent” investment bank, according to the letter. The investor also wants the board to form a “genuinely independent” special committee of directors. Steel is also pushing for a sales process free of CEO Moshe Mizrahy's "interference." The firm also wants Mizrahy to step down as CEO for the duration of the process and for InMode to halt all share purchases.

"This Board still has the opportunity to do its job," Lichtenstein added. "We urge you to take it and to act in the interests of all shareholders—not those of the Chief Executive Officer to whom many of you appear beholden."

InMode didn't immediately respond to Seeking Alpha's email request for comment.

The Steel letter comes after fellow InMode (INMD [https://seekingalpha.com/symbol/INMD]) shareholder DOMA Perpetual Capital Management on Friday said that it wouldn't support the $16.20 proposal and would vote against it. [https://seekingalpha.com/pr/20565311-doma-perpetual-capital-management-strongly-opposes-inmode-buyout-as-proposed-plans-to-vote]

MORE ON INMODE

* InMode: It's Time To Exit The Theater (Rating Downgrade) [https://seekingalpha.com/article/4917761-inmode-its-time-to-exit-the-theater-rating-downgrade]
* InMode Ltd. (INMD) Presents at Jefferies Global Healthcare Conference 2026 - Slideshow [https://seekingalpha.com/article/4912106-inmode-ltd-inmd-presents-at-jefferies-global-healthcare-conference-2026-slideshow]
* InMode: My Pick For A Major Turnaround In 2026 And 2027 [https://seekingalpha.com/article/4909613-inmode-my-pick-for-a-major-turnaround-in-2026-and-2027]
* InMode rises on unsolicited takeover offer [https://seekingalpha.com/news/4606678-inmode-stock-rises-unsolicited-buyout-offer]
* InMode Non-GAAP EPS of $0.25 misses by $0.05, revenue of $82M beats by $2.14M [https://seekingalpha.com/news/4586766-inmode-non-gaap-eps-of-0_25-misses-by-0_05-revenue-of-82m-beats-by-2_14m]