Mohamad Khachab On Selling A Snack Food Company For $200M And Now Supporting Upcoming Founders

Mohamad Khachab’s journey is one of resilience, authenticity, and unwavering determination. In a recent interview, he shared insights into his entrepreneurial ventures, the challenges he faced, and his commitment to giving back to the community. From humble beginnings to a successful exit, Mohamad’s story is a testament to the power of authenticity in business.

In this episode, you will learn:

• Mohamad Khachab’s journey underscores the importance of perseverance in overcoming challenges and achieving entrepreneurial goals.
• Mohamad’s commitment to authenticity fostered strong bonds with stakeholders, fueling the growth of his ventures.
• His background in engineering equipped Mohamad with analytical skills crucial for navigating the complexities of business.
• By prioritizing self-funding and reinvestment, Mohamad propelled the expansion of BMB Group from humble beginnings to global prominence.
• The success of BMB Group’s acquisition highlights the importance of maintaining company culture and values during transitions.
• Mohamad’s dedication to mentorship and philanthropy demonstrates the broader social responsibility inherent in entrepreneurship.
• Mohamad’s legacy serves as a testament to the enduring impact of resilience, authenticity, and integrity in business and beyond.

 

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About Mohamad Khachab:

Mohamad Khachab is a Senior Vice President At BMB Group at BMB Group based in Doha, Baladiyat ad Dawhah.

Previously, Mohamad was a Co-Chief Executive Officer & Partner at BMB Group.

Mohamad received a Bachelor of Engineering degree from BAU and an Executive Master of Business Administration from Hult International Business School.

Connect with Mohamad Khachab:

• LinkedIn
• Crunchbase
• Endeavor
• TheOrg

Read the Full Transcription of the Interview:

Alejandro Cremades: All alrighty hello everyone and welcome to the dealmakerr show. So today. We have a really amazing founder. You know a founder that you know has done it. You know now he’s really working on giving back. He’s a it’s amazing. You know what he iss doing in that sense of belonging. You know we’re gonna be talking about that doing our. Our our podcast today. We’re going to be talking about authenticity in business. Also mentoring people going about expanding your business and many other things you know monks stay. For example, the acquisition that he went through with his company. His company got acquired for 200000000 and they pretty much sell finance. The whole thing. So. Really remarkable and inspiring story that we have ahead of us so without far ado let’s welcome our guests today Mohamed Ka Job welcome to the show. So originally born in Lebanon you know, obviously.

Mohamad Khachab: Thank you Aleandro I appreciate that. Thank you so much. Nice.

Alejandro Cremades: On you, you move to the why but I know that during the years that you were born. You know I know that there was a lot of uncertainty so I guess give us a walk through memory lane. You know how was life growing up for you.

Mohamad Khachab: Yeah, like lebanon like I’m not sure if you’re familiar with that country. It’s like a very diverse country and it brings a lot of entrepreneur entrepreneurs you know around the world. So I had I had this like a chance to be like you know part of of this genes you know and. And yes, it was like a lot of uncertainty but as you know with uncertainty it brings you it. It brings with a lot of power. It gives you a lot of energy. You know once you are like you know, born and raised in a space which you feel there is a lot of certainty. It it puts inside you like a lot of power a lot of energy that you want to create and you want to prove and you want to do it. So I think and that helped us as a nation you know to be successful and and to be like. And because we we have a lot of culture like you know diverse within the country. Also it helped us to to speak a lot of languages to understand more how to deal with a lot of cultures around the world so that I think helped a lot as a base and then moving from Lebanon to Dubai. You know it’s and that’s also it was a big move you know because you have the background of of this culture background and then you are moving into a city which is which just started you know theba it started thirty years ago so moving from.

Mohamad Khachab: And entrepreneurial and a place which is a full of as you said of uncertainty but full of hope you know I feel we’re a nation of hope because like I’ll give an example like there was years where there was like words you know across the country but you feel like you know the the people and the. And everyone like once the 4 is finished once the word is finished next day everyone is is back to their business back to their back to parties back to having fun. You know? So so this is part of of our culture and and moving from there to Dubai which is. a stable city a stable country you know which where they’re building the future. You know they’re building the city of the future they’re building the county of the future I feel that gave me a a big push. You know to be who I am today.

Alejandro Cremades: So why engineering out of all things.

Mohamad Khachab: So I was like honestly I was so good in math and physics at school like you know and I wanted to take this challenge and I always I was always like analytical I like to analyze I like to challenge myself. So. This is how it started like you know in school and I was so good at that. So I felt know I want to go and expand my knowledge in this and it it really it like worked and I think engineering if if I would give an advice for anyone who wants to start like and thinking about what major you do is. Engineering because engineering is like you don’t need to finish and just go and work in that domain it gives you a mindset like to be and a better entrepreneur like you know a better a better even a businessman a better and life because it gives you tools how to analyze things Better. So. And so I feel engineering was like was really a good decision to take and moving forward.

Alejandro Cremades: So then let’s talk about entering the world of telecom. You know how was how was that for you.

Mohamad Khachab: Right? So yeah, so I graduated in 2007 and like I had the chance to move to Motorola like and in Dubai so I moved him I was like I studied in Lebanon in Beirut and then I moved to Dubai and I started as a telecom engineer. And I and I worked there for 2 years It was. It was so amazing. You know, but like for me I had always a dream I want to be my own boss I want to create something I want to make an impact and I want to create jobs. You know. I want to do something for myself I want to be my you know control my own destiny and this is how it started but engineering but that 2 years honestly, it was like something I will never forget because ah because like especially in telecom you know like and it was at then it was it was booming so I’ve learned a lot of. Yeah, like technologies I like everything is related to technology you have to be always on the top of things because okay today you graduate and you have the diploma but like in 2 years you’re going to be outdated if you are not on the top of of technology of what’s happening. So so that put me in a place at the beginning that you always need to be. On the top of your thing always the updated always go to trainings you know. So so that gave me a big push that I have to be on the run undergo always just to make sure you know I’m up to date and and the new technologies in the new things that’s happening.

Alejandro Cremades: So then so then let’s talk about venturing into the unknown into the world of entrepreneurship. How is that for you because I mean obviously you come from a country Also that is very traditional. You know so I’m sure that becoming an entrepreneur entrepreneur and you’re not going into.

Mohamad Khachab: Writer right.

Alejandro Cremades: Ah, large corporation or something like that I’m sure it was quite a conversation too with your family.

Mohamad Khachab: Yeah, yeah, so at the beginning it was really funny because I agree with what you’ve said you know you come from a traditional I come from a small city as well. In Lebanon you know? so so like yes you are not exposed a lot and you are not like. And I’m not born in New York City for example you have this all this exposure and I hadn’t had the chance to travel a lot you know because of like like maybe financial situation at the beginning so yes at the beginning it was so and I’m I’m based in Dubai and i’m. Like you know it’s a multicultural city you know and and it’s a cosmopolitan city you know like it’s it’s not easy to to work with. But um, you know at the beginning it was. It was so funny. You know it was like it was a bit of we didn’t expect that we’re going to take this company that big. You know. At the beginning. It was a dream you know? we had a dream you know yes we had the challenges yes we weren’t you know up to you know the the think that we have to be but and but we had a dream we wanted to do something and we wanted to be our own boss. And we wanted to make a difference. This is how we started. You know it started by just thinking simple that way and and we took it from there. we’ve learned a lot you know and we’ve and like you know I extended my studies you know I’ve I’ve been I’ve been mentored a lot by a lot of successful people.

Mohamad Khachab: Um, I’m very social. So I I spoke to a lot of people around me and I tried to be like you know to get to know things that I don’t know and taking this experience from a humble place into international space and into international space. But I tell you now we can discuss how we moved from this but it was. Ah, beginning a very humble you know beginnings and this is how we took it like Step-by-step forward.

Alejandro Cremades: So then B and B group I mean it’s a obviously the company that you guys say did you know you say the company that you ended up pay going at it. Ah you know, full time 2009 So I guess before we go into the you know actual story of the company for people to get it. What ended ended up being the business model of B and B group. How are you guys making money.

Mohamad Khachab: Yeah, so look at the beginning it was like self-funded and and just to give you a quick brief about what is bnmb so the bnb is a group of companies mainly in the snacking category. So what we do is we do like a category has Mediterranean suites. Another category is chocolates and another one is healthy snacks. We have a company hummus that does hummus we have a gluten free so and we do ingredients Baker ingredients. So it’s it’s a diverse. You know it’s it’s it’s a diverse company and and it started with with a small kitchen. You know like I remember we started as as a very small kitchen and then we started to grow up every category you know and then we open up you know once we are growing. We started like you know, growing our factory our manufacturing facilities our team so it started at the beginning as a as a very humble start. And this is where we started to scale up even from the manufacturing to the like you know to all the commercial and the background teams.

Alejandro Cremades: So then I guess how were the origins like how were the early days because you were saying that they were very humbling. You know we say you guys didn’t take any any external money we’ll talk about that in just a little bit but how were the early days like at what point do you realize hey I think that they were into something here.

Mohamad Khachab: Yeah, so when when I moved from my like job. My corporate job to to the business I was like recently engaged you know and I had to cut my salary into half and just to to give you like a funny story like and. 1 of my friends. He told me are you leaving engineering to sell to sell baklava like baklav which is like and meterranean swedes you know so they were making fun out of it because like what the hell you doing you know and and yes and I moved and we became. The largest blacklava manufacturers in the world. You know? So so this is this is how we we made this like niche industry like you know, largest in the world. So yes, we started humble and yes we started with a very small and capital. But what we’ve done is we’ve we’ve went and we’ve got like really good accounts and on because it’s a b two b business. You know we’re not a retail business. So and so we had a cash flow coming in and what we’ve done instead of of like taking the cash out our buckets. We were always reinvesting. The money inside like inside the company and the first few years was like for us like we barely could pay our the bills but what our main focus was is to make sure is to keep all what we’re doing inside the business and the business was like growing and while we’re growing. We’re funding the business. So.

Mohamad Khachab: And then we had a very good relationship with the banks and they gave us good facilities so we didn’t need to go out and raise Money. So and so we worked it worked well for us and as we grew the business because it’s a B Two B and it’s a more cash coming business So We didn’t need to. Ah, to bring anyone you know inside the business.

Alejandro Cremades: So I mean but I’m I’m sure that eventually you know you guys had like all types of offers and opportunities of external investors to come in because I mean you were building A really nice Business. So. Why did you guys make the decision not to raise money from external investors.

Mohamad Khachab: Yeah, like you know at the beginning because we didn’t want to like you know as a founder you always at the beginning you don’t want to dilute yourself. You know, but you want to make sure you get the most out of the opportunity and. We had the chance to to raise money and as you said we had because we we we belonged to to this the bai community is like the entrepreneur entrepreneur community is very like ah connected you know and we all help each other we all like you know, talk to each other so it’s. And and you know it’s very open you know market. So you have a lot of connections. A lot of people who would come and and like try to to come and work with you. But what we’ve said is like if we don’t need it. You know why would we raise money you know why do we? Why would you put like ah the and money on the table. We don’t need that so and we had the chance to have really good relationship with the banks you know and once we wanted to build the factory and to build like you know the factor I took grow the factory so we always said instead of doing this. Let’s take the risk at the beginning because like we’re still young and we’ll take the risk if at a certain stage later. We think. You know we can raise money we’ll do it. But fortunately like the first few years in the business were really doing well we were doubling you know year over year. So the cash was coming in so we we didn’t need you know more cash to and and we and we said we either way make it big.

Mohamad Khachab: Or we don’t want it. You know that was our always our like you know our vision like so we didn’t want to take to to have dividends. Let’s say to buy houses I bought my my house in 2018 you know so after 10 years of joining the business. So I was renting my house you know until you know, ah like ten years later so what we wanted to do is to make sure we had a very clear vision like you know after we started after a few years either. We go ipo or we have a strategic investor coming in. So either. We go big and like you know this company. Can grow as as maximize we can do or like you know, let’s keep it as it. So and so our dream was big and this is why we said instead of diluting ourselves with a cashche that we don’t need and we don’t want to put cash today in our pocket. You know, either we put a lot of cash in our bucket or. Or it’s not worth it. So that’s that was the dream. You know we want to make it big so this is why we’ve said you know what? like we’re not going to put money on the table. We just want to and reinvest everything we have and we have we were fortunate to be honest as well during our career to have. Some big accounts large accounts you know so we we work with with large names you know in the in the region here and this gave us the leverage you know to and to work with this and get the cash you know while we were producing for them. Huge accounts and and to build our business to to grow it globally.

Mohamad Khachab: To and to open offices in in more than and 35 countries across the world. so yeah so I think it was the dream was big. This is why we didn’t want to lose any opportunity within the business.

Alejandro Cremades: So then in this case I know that you know we’re thinking about building the business I know that authenticity you know for you in in business you know is is a big one So tell us what do you mean with this.

Mohamad Khachab: Exactly so like when I start like I come from a very authentic family. You know like like values like my dad that they taught me is was really and was always the top priority same thing my cousin like and my business partner. You know we started when we started the business we had the same values. We shared the same vision. So for us and I always promised myself because in business you see a lot of people after a few years after five or ten years you see a different personality when they started and when they exit you know so I promised myself. The day one I started the business like I’m going to stay who I am the humbled person. You know the ah charming person like you know, a friendly person so I don’t want the business to change me because like sometimes you know once you go into the business you grow your business and you have a lot of. Issues problems. You know with with customers suppliers employees. You know you become more tough and and you become more transactional. What I promised myself is this is not going to change me I want to stay who I am and the day I’m going to exit or the day I’m going to reach. Like you know the end I’m going to look back and I don’t want to regret anything so because I don’t want to reach a fafewyears you know I make tons of money and then I look back I was stepping on people’s solders you know or I was cheating or I was doing you know wrong steps. So.

Mohamad Khachab: I had this clear from the beginning I’m I’m a bit spiritual as well. This helped me in business. So I promised myself at the beginning I will never change you know and if you see me today and if you see me 15 years I go. It’s exactly the same person I have never changed and and this is what I always when I mentor someone. I always tell tell them something if you want to really make it big or if you want to make an impact. The most important thing is is like make an impact on yourself work on yourself. You know because because the the worst thing you can do is you grow a business. You make it big. And you you lose yourself in and this like journey right? so so and like for me know I enjoyed the journey. It was like it was a lot it was painful you know there was a lot of pain I lost my dad I lost my mom you know I had a lot of ups and downs. There was 3 years during this journey. The company was about to collapse. So I passed through a lot but I always said I can do like I can start up again and I can do another company and like so it’s not the end of the word I just want to make sure I say who I am so authenticity made me honestly made the business what it is today because all our customers or our employees they were connected to that you know to that culture we’ve we’ve created really a nice culture and and the company who acquired us and it’s like honestly it’s is. It’s one of the largest but like it was founded by a very special person in the early 70 s his highness shekhza it shakzeit he is the founder of the ue.

Mohamad Khachab: And he’s called. He’s the father of the nation. You know he he’s the one who put the first time to create this amazing nation and and this company if they will not ever come and buy a company if if the if the founders and entrepreneurs and the company itself if it doesn’t look. You know like it doesn’t share the same values. So so at the end it paid off. You got my point so so authenticity in business is for me is is is amazing. You know and it’s love you know it’s it’s spreading. It’s spreading. Love you, don’t need to to grow your business or to make money. Ah, while while spreading hate. So so authenticity keeps this, you know this nature within the business and and once you succeed with authenticity. You enjoy everyone is like and and everyone will enjoy around you if it is the team if it is customers if it is suppliers if it’s friends if it’s family. So yeah, so authenticity for me is like is is a priority in life. You know, like in anything I do.

Alejandro Cremades: So walk us through the magazine insiders through the acquisition you know because so you see the company ended up having a really nice sexit with the a yeah with that? Yeah, so so what walk us through how that acquisition happened and in in what was that process like.

Mohamad Khachab: Yeah, so it was during covid by the way it was the toughest time like we’ve ever passed covid was at the beginning was tough but it was the best thing that happened to our business because we’re in food business right food manufacturing and and covid gave a big boost. You know to our business. But it all started when the company they contacted us they want they want it to because because as I told you the the market here. It is big and it’s small. You know our culture is we have like. I always say we have an amazing culture here. You know like because our culture is very friendly. You know we everyone knows everyone. You know we like you know we always like to connect. We always like to you know, meet to meet and like it is. It’s something. It’s a nice culture and our business is is. It has a good name. You know within and it has a good ah vibes within that community so they have contacted us and in early in in April Two Thousand and twenty one and it took four to five months to just finish the deal you know so they started in and April and we finished the deal in September October the same year you know so and and since I told you about the values. Ah and authenticity. So our business was built in a in a very straightforward you know, ah our finance our structure.

Mohamad Khachab: Our ah financial numbers our commercial our route to market. It was really it wasn’t that hard to in terms of diligence and the company. They’re very smart. You know they they public listed company. They like they have belonged to the public listit company and another half owned by. A company called adq which is the one of the largest sovereign funds in the world you know and and such a great teams big teams smart teams so they come they finish the deals quickly. You know it’s not like it takes 1 year or 2 year of diligence they want to make sure they keep the culture they keep. The incentive. They keep everything working so they don’t take so much time during Diligence. So for them. It’s 3 plus one you know maximum four month we have to change it. So so honestly it was a bit. It wasn’t a bit like ah tough ah to be honest because because they knew what they want we knew what what we want and. And everyone made it easy. You know for everyone. So so yeah, it was a four or five month of of diligence and from that from the start to exiting you know the deal. Yes.

Alejandro Cremades: And 200000000 so not about outcome. You know, especially having in mind that you know that went all to the partners pocket which is amazing and so so I guess same you know for you the next one you know I guess this next chapter is more about central belonging.

Mohamad Khachab: Um, that’s right? um.

Alejandro Cremades: And they and given back and you are actually part of organizations like Endavor which is a phenomenal organization but but walk us through this next chapter this given back Why giving back you know and and and and really helping the startup Aco system is so important to you.

Mohamad Khachab: Yeah, because like endeavor like who who doesn’t know endeavor like it’s a global and nonprofit organization which is all about the scaling the global economy you know and and usually there’s like we have offices almost and most of the cities around the world around the world. And the aim is is to find companies or entrepreneurs who are like capable to scale up their business and but to put them into the network and help them grow and so for me endeavor had helped me a lot during my career during the company growth. So um, once we entered. Never they they they help us to scale this business really quick and and globally and it was all about being mentored by amazing leaders. You know, like across the world like you know from Dubai to us to Asia to Europe so I was mentored. The top people around you know around this and offices and it was all about helping us to grow and this since I have this you know I have this always like and my nature of giving back. You know, giving back to the community and giving back to to family to friends. so and so I had this also fired up you know and and I’m very close like you know endeavor I’m like I’m one of the most let’s say committed members in the world. You know so there is 3000 entrepreneurs I feel I’m one of the top 5 of whoever committed because because I want to give back the way they gave me so.

Mohamad Khachab: So within this community you mentor and you get you know you get mentored and you mentor people so it it would me like it fired me up. Okay, so I want to make sure you know everyone’s help in accessing. Let’s say markets which is I had the chance to access a health and chance to explore. And then also people who are at the beginning of their career at the beginning of their journey to help them so this organization really gave me a lot of also power to do that. You know so and I think it was a big part of of who I am today it shaped me the way who I am today so giving that.

Alejandro Cremades: And when you I guess I guess I I want to ask you something there real quick Mohammad because I think that is very profound what you just said you know of um, giving back to friends and family and I know that you’re even getting behind your brother. You know now Dr Kashha so why

Mohamad Khachab: Ah, something um, term.

Mohamad Khachab: Um, that’s right, That’s right, That’s right.

Alejandro Cremades: So how how how do you typically go about helping out final and in this case for example, your brother Dr Kash up which which he has like something really cool. You know that he saying that he’s rolling out.

Mohamad Khachab: Like right right? So let me tell you about my brother. You know like and I never thought like we’re going to do something together. We’re very close. He’s he’s one of the smartest people I have ever met. You know he’s he’s one of the top. Endoscopist in the world. You know he he has disrupted this you know industry and and once our mom passed away in 2019 and with a disease called acute pancareatitis and and that’s the specialty of my brother. You know and he was in the us and my mom had this issue in in Lebanon and he had to fly to lebanon. But unfortunately it was like a 24 hours late that doctor in Lebanon took a take. It took a wrong decision and and it caused what it caused you know. And when my brother came in he had this like anger you know like like and that doctor was even his professor you know back in days in and the american university of Beirut you know so and it it turned out fired inside him you know and it was it was so tough to see you know what happened when he came back to the States. He wanted to find a cure to that disease you know and and what he did is he cofounded a company with amazing physicians. Ah, and they’ve created a company called solve.

Mohamad Khachab: Which is now in the process. They just finished the seed round. You know they’re moving and it was all by the way grants. They didn’t raise any money from from from investors so he created a yeah, a a drug which is a flush so acute pancuittis just give me a minute to tell you what is it so to tell you when I got inspired. It needs it needs 6 endoscopy procedures. Its each procedure is 2 hours full anesthesia like you know, ah, and if you’re old. You can’t hold this you know and they have to put a drainage from the pancreas to the stomach to to drain out all these like you know inflammation and. If youre if someone is old or like and not in a good shape. They cannot sustain this so there is two point eight million people dies annually because of this disease. So what they did is they created a flush. It’s like it’s a magic flush that you just flush it inside the pancreas and in 10 minutes dissolved the whole inflammation and then you’re cured and it is a a one half an hour procedure and they are now an advanced stage off of ah of like animal tests animal tests and for me that gave me like wow. You know, like what like I know I always knew that my brother is his genius. You know he has done. He saved a lot of lives but that was for me a a wow effect and this is where we started talking so and because he is not He’s coming from it not he’s not coming from a business background.

Mohamad Khachab: So the way he formed that company for me. It wasn’t you know the optimal way for him you know and and this is where we started discussing. Okay, it was just a mentoring session. You know it’s not like I didn’t want to do anything with him. It was just helping him and doing it right. Because he had a lot of ideas that he wants to do like in the future. This is how we started and then when I went deeply with him I saw how smart is he and the amazing ideas he has and for me I always wanted to make an impact and when I exited the business. Like you know I thanks god I have now the luxury to say no to the things that I don’t want you know because now I don’t want to go into things just to make money or just to invest I just want to go and put my time in things that makes an impact the impact and and the business I’ve done in Bnb we create we had 1500 employees and maybe another 1500 indirectly you know that are working with suppliers customers. So I had the chance to let’s say to have an impact on jobs you know, but like.

Alejandro Cremades: There’s about the the.

Mohamad Khachab: With with metech with medical devices or or like drugs. It’s like it’s you impacting people’s life you know and and this is something that is queuing ah people from from dying. So for me when I started talking with my brother like I felt like that’s a. Huge impact that I can do you can I can add so imagine if I do this and we create a a couple of devices a couple of drugs and it turned out to be successful. How much impact we can do and plus you can make money as well, right? So if if that chance if you succeed you save people’s life and you make money. So this is how how it started and my brother is kind of a guy who starts at 5 in the morning and he shut down at 10 in the evening. You know he’s like he’s like he’s he’s his genius and he goes and he goes beyond. Like what is needed to make something successful and and this is how it started.

Alejandro Cremades: Well, it’s all about the future that you’re living into so you know, really exciting stuff. They’re now talking about the future I want to talk about the past but doing so with a lens of reflection. So let’s say I was to put you into a time machine and I bring you back in time you know perhaps to 2009 that moment that you were you know. Venturing into the unknown and let’s say you were able to stop that younger self and you’re you were able to give that younger self that younger mohammed 1 piece of advice before launching a business but would that be n why given what you know now.

Mohamad Khachab: Don’t be sensitive. You know don’t don’t take things personnel you know sometimes you know let’s say at the beginning you get a hit by a customer or someone who doesn’t respect you or like you know, like whatever you know don’t be sensitive and don’t take things personally. Because once you are mature Enough. It’s easy for you to just put it Back. You know, but at the beginning it you take it so much on yourself that you cannot hold it. Yeah so so don’t be sensitive and don’t take it person.

Alejandro Cremades: I love it. So why Mohamed for the people that are listening that will love to reach out and say hi. What is the best way for them to do so.

Mohamad Khachab: So if yeah, my email address I think it’s like you know the best way to contact. Yeah I would love to yeah if you can share my email address with anyone who would it’s my my personal email address is mock a it’s MOKaatKH a

Alejandro Cremades: What what is your email address. Why don’t you share it here with us.

Mohamad Khachab: SHAB at hotmail.com you know, thanks you so much. Thank you Alexandra my pleasure. Thank you so much was nice talking to you.

Alejandro Cremades: Amazing! Well hey well is he enough well Mohamed. Thank you so much for being on the dealmaker show today. It has been an honor to have you with us.

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