Attempted sale of M.M.D. Smart
Merger and acquisition (M&A) with Wix.com Ltd
The M.M.D. Smart group of companies does not have a typical holding structure or a single business organization. The companies are located in Israel, Ukraine, Bulgaria, England, Singapore and Russia. The common factor uniting these companies are their owners, as well as the use of the abbreviation M.M.D. Smart in their names. It should be noted that there is no M.M.D. Smart trademark or brand. A detailed description of the company’s structure and management will be presented in a separate article.
Despite the fact that the company structure does not meet international management standards, the owners of M.M.D. Smart are continuously considering the possibility of selling the company. One interesting case occurred in the second half of 2021. Questions about the takeover or merger of M.M.D. Smart remain secret, but some information is still becoming available.
Most of the staff is concentrated in the Kiev office. The offices in Singapore and England are represented by leased legal addresses without real offices and employees. The owners and top managers are located in Israel. The team in Russia is about a dozen people. As of fall 2021, the Bulgarian company did not yet exist.
A comprehensive due diligence was conducted at the administrative office in Ukraine in the fall of 2021. Interviews were conducted on various operational and organizational aspects of the office, checks on the availability of employees and active operations were carried out. The company prepared data for sale.
The Israeli company Wix.com Ltd. acted as a potential buyer. The shares of Wix.com Ltd. are listed on the NASDAQ U.S. exchange. Unlike M.M.D. Smart, Wix.com Ltd. – is a large company with headquarters in Tel Aviv and offices in the United States, Ukraine and Lithuania.
Wix.com is an international cloud-based platform built on Scala for web development. The platform allows the construction of websites and mobile versions on HTML5 using drag-and-drop tools. The transaction has not been finalized at this stage.
There were different points of view in employee discussions: rumors about the high cost of the deal appeared repeatedly; there were also doubts about the organization of production processes. Thus, the deal was canceled.
However, the owners of M.M.D. Smart did not learn from this experience. The brand policy, due diligence policy and HR policy of the company remained unchanged. This is evidenced by the creation and maintenance of this website.
And things could have been different.