OH NO! Kapan Aquires Manhattan

Question

Many of you have probably seen this. I was planning on taking the Manhattan GMAT course. I have heard great reviews, online and in person, about Manhattan. While I have have heard only medicore, at best, reviews about Kaplan. I am unsettled to say the least about Manhattan becoming part of the Kaplan machine. I wonder how long it will take for Kaplan to absorb Manhattan and destroy their methods. Does anyone have thoughts, concerns or predictions on the fate of Manahttan GMAT?

akuma · Answer

You have to realize that Kaplan JUST acquired MGMAT. A full integration of the two companies' teaching methodologies and practices, if there will even be one, will not occur overnight. Also, companies that acquire other companies proven to be successful tend to not make any noticeable changes. Why fix something that's not broke?

mohater · Answer

You should read more before and after M&A deals to see what really happens to the acquired entity...

carriedinterest · Answer

I just signed up for MGMAT's online course. Was willing to fork over the extra cash precisely because the Manhattan guys are known for their rigorous approach to teaching content rather than fluffy guessing strategies (Kaplan's preferred approach).

Here's hoping that MGMAT will be able to retain its unique approach after the two entities have had time to fully integrate!

Here's hoping that MGMAT will be able to retain its unique approach after the two entities have had time to fully integrate!

nink · Answer

For the sake of all the future GMAT test takers, let's just hope that Kaplan is wise enough to just abandon their own curriculum and test prep materials (on GMAT) and (only significant change they implement post merger) slowly phase out MGMAT name with Kaplan brand replacing it.

My guess is that they will eventually use Kaplan brand since it has stronger brand recognition, but who knows....

nink · Answer

It's rare for any acquirer to keep that promise. They would have to consolidate some operations (at least) that overlap to generate post M&A savings from this transaction.

AndrewYang · Answer

Hello all. I saw this thread, and wanted to address some of the voiced concerns.

First, some background. Yes, at the end of last year, Manhattan GMAT was acquired by Kaplan.

Our founder, Zeke Vanderhoek, has been working on an innovative charter school since the beginning of 2007. Zeke’s school opened its first 5th grade class this past September, 2009, with Zeke as its principal.

Being the owner of a company and the principal of a new charter school are both essentially full-time endeavors, and though Zeke had stepped away from day-to-day operations at MGMAT, he concluded that he couldn’t really effectively do both (despite being an obviously very talented guy!). Enter Kaplan.

Kaplan and Manhattan GMAT, despite being competitors in the marketplace, have always held each other in mutual respect. In fact, Kaplan has told us in no uncertain terms, “Keep doing what you’re doing!” and wants us to focus on what we’re best at – delivering a great educational experience. Accordingly, MGMAT is continuing to operate independently, with the same team, Instructors, and curriculum; we’re still working as hard as ever (shameless plug: We have a new advanced math book coming out in the Spring!).

Students should have the same expectations of us that they’ve always had – we’ll be here doing our best to meet and exceed them every day.

Sincerely,

Andrew Yang
President
Manhattan GMAT

Irishman · Answer

I saw the other thread.
confirmed-kaplan-test-prep-aquired-manhattan-gmat-88887.html

Totally agree with the discussion about unavoidable consolidations of manhattan gmat into Kaplan. Regardless what both companies have claimed publicly, it is clear that the operations will be combined within a few months. It is just confusing to mix two names in the same space - maybe Kaplan will keep what manhattan gmat does well and manhattan gmat will leverage on Kaplan's platform including the large network of test prep centers around the world.

In any case, in the end, a small company will disappear and be replaced by the hierarchy of a huge one. Not a good thing for prospective manhattan gmat students. Maybe soon some instructors from either side will be out looking for a new gig.

It is the time to check out all the options available - knewton, veritas prep, manhattan review...these are certainly the ones which are still nimble and entrepreneurial - putting students' needs first and then profit - unlike a subsidiary of Washington Post, profits come first and foremost to offset the sinking P/L of the parent.

Kudos to all the survivors of the nasty recession! Let the discussion continue...

rbriscoe · Answer

It makes no sense for Kaplan not to consolidate Manhattan into their operations. If they do not then they have to admit there are qualitative differences in their product offerings. Further they would be cannibalizing each other sales. Differences in compensation and philosophy will create issues with the Kaplan rank and file. In any case Manhattan has a different business model than Kaplan. At a minimum Kaplan will raise the price and sell it as a premium service.

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OH NO! Kapan Aquires Manhattan

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