Stock Markets July 9, 2026 09:37 AM

InMode Shares Jump After Steel Partners Proposes Higher Cash Offer, Escalates Governance Fight

Steel Partners bids $16.75 per share and urges board changes as a rival CEO-led $16.20 proposal faces growing criticism

By Caleb Monroe
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InMode shares rose in morning trading after Steel Partners Holdings L.P., an existing investor, submitted a $16.75 per share cash offer that tops a competing $16.20 per share proposal led by CEO Moshe Mizrahy. Steel’s proposal includes an option for shareholders to roll up to 40% of their equity into a Steel-controlled vehicle and calls for immediate governance changes, while critics say the CEO-backed bid undervalues the company.

InMode Shares Jump After Steel Partners Proposes Higher Cash Offer, Escalates Governance Fight
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Key Points

  • Steel Partners submitted a $16.75 per share cash offer for InMode, topping a competing $16.20 per share proposal led by CEO Moshe Mizrahy.
  • The Steel Partners bid implies about a 20% premium to InMode’s unaffected share price and allows shareholders to roll up to 40% of their equity into a Steel-owned vehicle - developments that affect the medical aesthetics device sector and shareholder value dynamics.
  • Steel demanded governance actions including formation of an independent special committee, retention of an independent investment bank, and removal of the CEO, while independent shareholder DOMA Perpetual Capital has publicly opposed the CEO-led offer.

InMode shares moved higher in morning trading, climbing about +3.3% after Steel Partners Holdings L.P., a major existing shareholder, lodged a formal cash acquisition proposal at $16.75 per share. That offer eclipses a rival bid of $16.20 per share put forward by a group led by InMode Chief Executive Officer Moshe Mizrahy.

Steel Partners' proposal amounts to roughly a 20% premium relative to the company's unaffected share price, and it presents existing holders with the choice of rolling up to 40% of their equity into an entity to be owned by Steel. Beyond the headline figure, Steel intensified the dispute over control by demanding that InMode’s board create an independent special committee, hire an independent investment bank to advise the company, and remove Mizrahy from his CEO post - actions Steel attributes to concerns about Mizrahy’s conduct during the strategic review.

The investment firm also contends the CEO-led offer materially undervalues InMode, pointing to the bid’s reliance on a 2026 adjusted EBITDA projection of $65 million. Steel contrasted that estimate with InMode’s own May guidance for 2026, which projects adjusted EBITDA in a range of $73 million to $78 million. Independent shareholder DOMA Perpetual Capital has publicly opposed the CEO-backed proposal as an undervaluation, increasing pressure on the board to seek a higher outcome for shareholders.

Market action beyond InMode was muted; both the S&P 500 and the Nasdaq were essentially flat on the day, and there were no comparable M&A developments reported among peers in the medical aesthetics device sector. Those conditions point to a company-specific catalyst behind the move in InMode’s stock, rather than broader sector or market forces.

Steel Partners set a firm deadline of July 13 for a response from InMode’s independent directors. With two competing acquisition proposals now on the table and visible shareholder opposition to the lower CEO-backed bid, market participants are treating the latest developments as a step that could lead to a premium exit for shareholders. That perception has helped push the stock toward the top of its 52-week trading range, which runs from $12.72 to $16.74.


Clear summary

Steel Partners has offered to buy InMode for $16.75 per share in cash - higher than a CEO-led $16.20 per share bid - while pressing the company for governance changes and arguing the rival proposal undervalues the business versus company guidance. Independent shareholder opposition to the lower bid and a July 13 response deadline have amplified market focus on a potential higher-value outcome.

Risks

  • Uncertainty around whether InMode’s board will accept Steel Partners’ $16.75 per share offer or another outcome, which impacts equity investors and the medical devices sector.
  • Governance conflict and calls for leadership removal could prolong the strategic review and create operational distraction for management and the board.
  • Dispute over valuation assumptions - Steel criticized the CEO-led bid for relying on a 2026 adjusted EBITDA estimate of $65 million versus InMode’s May guidance range of $73 million to $78 million - creating uncertainty about the appropriate price for shareholders.

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