Activist investor cites 'egregious' failures, signals potential proxy fight or bid.
Steel Partners Holdings has issued a letter to InMode's board citing what it characterizes as "persistent and egregious governance failures," escalating pressure on the RF and ultrasound device maker. The move signals Steel Partners—which has built a meaningful stake—is prepared to pursue board representation or a full acquisition if governance concerns are not addressed.
InMode's stock has underperformed relative to peers over the past 18 months despite strong installed base and recurring revenue from consumables (tips, handpieces). Governance critiques typically center on capital allocation, dividend policy, and strategic direction—areas where activist investors often see value unlocking potential.
Activist investor Steel Partners escalates pressure on InMode board over governance.
For practices, this matters because device consolidation often follows activist campaigns. If Steel Partners succeeds in gaining influence or acquiring InMode, integration with other portfolio companies or a sale to a larger player (Cutera, Candela, or a PE fund) could reshape pricing, support, and loyalty-program terms. Watch for proxy filings and board composition changes in coming weeks.
Source: original report ↗
Frequently asked questions
What is Steel Partners doing with InMode?
Steel Partners, an activist investor with a meaningful stake, has sent a letter to InMode's board citing 'persistent and egregious governance failures' and signaling it may pursue board representation or a full acquisition if governance concerns aren't addressed. The move escalates pressure on the RF and ultrasound device maker over capital allocation, dividend policy, and strategic direction.
Why has InMode stock underperformed?
InMode's stock has underperformed relative to peers over the past 18 months despite having a strong installed base and recurring revenue from consumables like tips and handpieces. Activist investors like Steel Partners believe governance failures around capital allocation and strategic direction are preventing the company from unlocking shareholder value.
Could InMode be acquired?
Yes. If Steel Partners gains board influence or pursues a full acquisition, InMode could be integrated into Steel Partners' portfolio companies or sold to a larger player like Cutera, Candela, or a private equity fund. Device consolidation often follows activist campaigns and can reshape the competitive landscape.
How could an InMode acquisition affect my practice?
Device consolidation under new ownership could change pricing, support quality, and loyalty-program terms for practices using InMode equipment. Practices should monitor proxy filings and board composition changes in the coming weeks to anticipate potential shifts in vendor relationships and service levels.
What should medspa owners watch for regarding InMode?
Watch for proxy filings, board composition announcements, and any statements from Steel Partners or InMode management in the coming weeks. These will signal whether Steel Partners is pursuing board seats, a full acquisition, or a negotiated settlement—each outcome could have different implications for device pricing and support.
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