This Entrepreneur Sold A Snack Food Company For $200M And Now Supports 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, Khachab’s story is a testament to the power of authenticity in business.

Listen to the full podcast episode and review the transcript here.

From Lebanon to Dubai: Embracing Uncertainty

Khachab’s journey began in Lebanon, a diverse country teeming with entrepreneurial spirit. Despite the uncertainties, Khachab found inspiration in his cultural background, fostering a sense of resilience and determination.

The varied culture, diversity, and multi-lingual environment developed a unique worldview that would be an asset in his journey. His move to Dubai further fueled his ambition as he witnessed the city’s transformation into a hub of innovation and opportunity.

With a knack for mathematics and physics, Khachab chose to pursue engineering, drawn to its analytical nature. Engineering not only provided him with technical skills but also instilled a mindset conducive to entrepreneurship.

It taught him to critically analyze situations and approach challenges strategically.

Venturing into Telecom: Nurturing Entrepreneurial Dreams

Mohamad studied in Beirut, Lebanon, graduating in 2007. Soon after, he moved to Dubai and started his career in telecom engineering, which laid the groundwork for his entrepreneurial aspirations. Despite a thriving career, he harbored a desire to be his own boss and create something impactful.

Mohamad’s two years in the telecom industry exposed him to the fast-paced world of technology and the importance of staying ahead of the curve. At the time, the industry was booming, so he learned a lot about how everything is related to technology.

The rapidly evolving nature of the industry pushed Mohamad to ensure that he was always up to date with the new technologies. Even though he was based out of Dubai, a multicultural and cosmopolitan city, he did not expect to build a giant corporation.

Mohamad continued to extend his studies and took advantage of the mentoring he received from successful people. He also considers himself a social person who enjoys interacting with the people around him to learn things that he doesn’t know.

The Birth of BMB Group: A Journey of Self-Funded Growth

In 2009, Mohamad co-founded BMB Group, a conglomerate specializing in snacking products. Starting from humble beginnings, the company initially operated from a small kitchen, gradually expanding its product line and manufacturing facilities.

Mohamad reveals that the company has several categories, such as Mediterranean sweets, chocolates, healthy snacks, gluten-free and regular hummus, and baker ingredients, to name a few. It is a diverse company that now has commercial and background teams.

Mohamad’s commitment to self-funding and reinvestment propelled BMB Group’s growth, culminating in its status as a global player in the snacking industry. It is now the largest baklava manufacturer in the world and has successfully made the niche industry the largest in the world.

As Mohamad explains, BMB is not a retail business, so it has good cash flow, which they reinvest into the company. Although they were barely able to pay their bills in the first few years, they have maintained the focus of keeping money inside the business so it can grow.

BMB had a very good relationship with banks, extending its facilities and eliminating the need to go out and raise money. This factor worked well for them, and since it is a B2B business, they had enough cash to invest in the business.

Although Mohamad had enough opportunities and connections, he opted to avoid dilution and turned down funding offers. He always had a clear vision of taking the company to IPO or bringing in a strategic investor.

His objective was to grow the business organically and globally and eventually open offices in more than 35 countries worldwide.

The Power of Authenticity: Sustaining Business Values

Throughout his entrepreneurial journey, Mohamad prioritized authenticity, staying true to his values and identity. He attributes much of BMB Group’s success to its authentic culture, resonating with customers, employees, and stakeholders.

Mohamad emphasizes the importance of maintaining integrity and authenticity, even in the face of challenges. He was determined to remain humble regardless of the business’ success.

He did not want to become more tough and transactional and make tons of money by stepping on people’s toes or cheating them. Mohamad is proud of the company culture they have created.

Navigating an Acquisition: Success Amidst Uncertainty

Despite the challenges posed by the COVID-19 pandemic, BMB Group thrived, ultimately attracting the attention of a larger corporation, Agthia Group PJSC. The acquisition, valued at $200M, marked a significant milestone for Mohamad and his team.

Their commitment to authenticity and excellence facilitated a smooth transition, ensuring the preservation of BMB Group’s culture and values. As Mohamad reveals, the due diligence progressed smoothly since they had great financial numbers and a commercial route to market.

Giving Back: A Commitment to Mentorship and Impact

Mohamad’s entrepreneurial journey extends beyond business success; it’s also about giving back to the community.

As a mentor with organizations like Endeavor, Mohamad shares his expertise and experience with budding entrepreneurs, helping them navigate the challenges of scaling their ventures.

Additionally, Mohamad’s involvement in philanthropic initiatives reflects his commitment to positively impacting society. He explains that Endeavor is a global and nonprofit organization that is all about scaling the global economy.

Endeavor has offices in most of the cities around the world. Its objective is to find companies or entrepreneurs who are capable of scaling up their businesses, putting them into the network, and helping them grow.

Endeavor is part of a community of people who have had great mentors and are now themselves mentoring upcoming entrepreneurs.

Storytelling is everything, which is something that Mohamad Khachab was able to master. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend Peter Thiel (see it here), where the most critical slides are highlighted.

Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.

A New Chapter: Supporting Medical Innovation

Mohamad’s latest venture involves supporting his brother, Dr. Khachab, a top endoscopist, in developing groundbreaking medical technology. Together, they aim to revolutionize the treatment of acute pancreatitis, saving lives and making a lasting impact on healthcare.

Mohamad reveals how Dr. Khachab has just completed the seed round but has grown his company using grant money instead of raising money from investors. He had now created a drug to treat acute pancreatitis that eliminates the need for traditional treatment methods.

These methods involve up to six endoscopy procedures, with each procedure needing two hours of full anesthesia. Next, doctors must insert drainage from the pancreas to the stomach to drain the inflammation.

Elderly patients typically don’t survive the procedure, which results in the death of 2.8 million people each year.

Dr. Khachab created a flush that could dissolve the inflammation within the pancreas within minutes. A 30-minute procedure can now cure the condition and is at an advanced stage of animal testing.

Lessons Learned: Advice from a Seasoned Entrepreneur

Mohamad’s dedication to entrepreneurship and philanthropy continues to drive him toward meaningful endeavors that create value and change lives. Reflecting on his journey, Mohamad offers valuable advice to aspiring entrepreneurs.

He emphasizes the importance of resilience, authenticity, and humility in navigating the complexities of entrepreneurship. His journey serves as a testament to the transformative power of perseverance and the profound impact of staying true to oneself.

As he continues giving back to the community and supporting innovative ventures, Mohamad leaves a legacy of resilience, integrity, and positive change.

Listen to the full podcast episode to know more, including:

• 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.

 

SUBSCRIBE ON:

For a winning deck, see the commentary on a pitch deck from an Uber competitor that has raised over $400M (see it here). 

Remember to unlock for free the pitch deck template that is being used by founders around the world to raise millions below.