CEO and Founder Matthew Schuck on the recent acquisition of his Ed-Tech company
Alexander Academy specialized in SAT and ACT preparation and was acquired by Ivy Tutors Network in 2023. Their popular test prep app received numerous accolades including editorial selections from Apple and Google Play.
First of all congratulations!
Thank you, it’s been an exciting period for us.
We interviewed you back in 2017, how have things changed since then?
Well the big change for us was expanding online and developing our app. At the time we had published two textbooks and were working primarily with schools in Atlanta. The shift online allowed us to serve a larger client base and recruit teaching talent from around the country. That led to some pretty rapid growth, with our staff nearly quadrupling in the 3 years after that.
What led you to develop the app?
The response to the textbooks was encouraging and we wanted to make the materials available to more students. We had also seen that UX strategies like “gamification” were effective at increasing engagement and wanted to apply that to test prep as well. Small reward systems like points and progress bars may seem trivial but they can make a big difference in keeping a student’s attention. Games are a key part of how we learn – we play games from a very young age – so tapping into that can be surprisingly effective. The app also allowed us to remove some of the friction in the study process. Instead of paging through a 50-page test, students are prompted to resume a section as soon as they open the app. They can access their scores right away, schedule tutoring sessions, get reminders for homework assignments etc. The more you make these processes seamless the more students engage with the material, which for entrance exams means important skills like critical reasoning and reading comprehension.
How did this deal come about?
We had a chance to meet several people at Ivy Tutors in 2022 and hit it off pretty quickly. We had been approached by several groups over the years but didn’t seriously consider selling until our meeting with Ivy. It was clear from the start that our companies fit well. Ivy had built a large network of schools and educators over about two decades, earning contracts with many of the large school districts in New York. While their focus was primarily on academic tutoring, they were looking to expand their test prep program as well. After the initial meetings, it took about 6 months for the deal to come together.
Could you tell us a bit more about the process of selling a company?
As a midsize company, I would imagine that our acquisition was probably more straightforward than a large one, but it was still a lengthy process with several steps. After the initial conversations, there was a round of presentations (company systems, materials, KPIs etc.), the valuation, letter of intent, formal offer, and due diligence (review of company data, financial documents etc.). It was my first time going through that so I was learning about each step as we went along. The contract drafting was probably the most complex step, with lawyers on both sides helping to negotiate and structure the deal. I got to learn a good bit of contract law during that process, which I didn’t know much about, and found interesting. Overall, we were fortunate to have a good partner in Ivy, and a smooth process overall.
There are many entrepreneurs no doubt who are aspiring to build a successful business. What advice would you have for them?
I would say the main thing is staying connected to your clients. In our case it was the many young people studying hard and aspiring to higher education – the reason we started in the first place. At the end of the day, it’s about providing something useful to them. Recruiting great people is also key. Startups require long hours and it’s important that your team enjoys being there and cares deeply about the work. There’s more I could say about systems building, research etc. but I think if you start with those two things, it’s your best shot at consistent growth over the long run.
What’s next for you?
Ed-tech is still an interesting space to me, although it’s changing quickly. Companies like Google and OpenAi are spending large amounts on Ai development, some of which is already impacting how students learn. I think we are heading soon towards “universal tutors”, systems that can answer virtually any question with human level interaction. This won’t negate the demand for educators but will probably alter their role in the future. With the high cost of these systems, it may also mean more difficulty for smaller startups to compete. At the moment, I’ve been traveling a lot, reading a lot, and thinking about new ventures!
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