Stuart Udell
President, Postsecondary Education
The Princeton Review
Fresh from the $170 million deal in which his schools were acquired, Stuart Udell is making new higher education deals happen for The Princeton Review.
How well did you do personally when Princeton Review acquired Penn Foster?
I was not involved in the startup, which was International Correspondence Schools in the 1890s. I was able to buy into a minority position of successor Penn Foster in 2007 as CEO. The sale in 2009 was rewarding. And I have an equity stake in Princeton Review now.
Explain how that deal will benefit a modest-sized post-industrial American town.
It's an enormous win for Scranton, Pennsylvania, population 100,000. In 2007 we helped the company move from job risk to job stability. As a result of the 2009 deal, the integration of corporate functions is underway, and we've moved some Princeton Review jobs into Scranton. Subsequent proposed deals call for the addition of 500 jobs in Scranton.
What are your responsibilities with the acquiring company, Princeton Review?
I'm still CEO of Penn Foster, one of the world's largest online schools based on an enrollment of 220,000. I'm also President of Postsecondary Education for Princeton Review. I work with Michael Perik, Princeton Review's CEO, and we're looking for deals that will produce innovative partnerships with traditional higher education institutions and community colleges.
What kind of deals are you looking for?
Here's an example. We are financing an allied health facility at Bristol Community College (MA). The objective is to shrink and eliminate Bristol's lengthy waiting list for nursing students and prospective allied health practitioners. We also want to help the school scale their operations to serve a rather large unmet demand in their market area. We will help market those academic offerings and share in the expected profits.
What factors make a community college system ready to welcome private capital?
Students on long waiting lists. A down economy. Shrinking government budgets. Capital available from knowledgeable higher education practitioners.
Do you have a deal working with a private nonprofit college or university?
Yes. We recently announced a deal with National Labor College in Silver Spring, Maryland. This partnership will serve a unique audience, 11.5 million members of AFL-CIO affiliate unions and their families.
As an entrepreneur what do you bring to successful deal-making?
I've worked in start-up environments. I've helped more than one company build revenues above nine figures. In doing so I've learned to discern trends within large amounts of information. That helps me spot potential deals. Next comes the proposal and negotiations. I'm happy to participate and rely on my Princeton Review colleagues through much of the process.
What did you learn at Bucknell and Columbia that you use regularly today?
I studied business at both institutions, and I learned the language of business well. Columbia also taught me a variety of business models. There are three important things I didn't learn at either school - the three S's - sell, serve, speak. Running a business or doing a deal requires proficiency in all three.
Where would you like to be five years from now?
There's a great slate at Princeton Review right now. Two world class brands and a sincere desire to do true partnerships with U.S. colleges. I expect to be happily here five years hence.
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