Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
Accurate accounting is the bedrock of any successful...
Distinguishing between independent contractors (1099) and employees (W-2)...
May 26, 2021
Credit Karma, a fintech company founded in 2007, was recently acquired by Intuit, a 1980s-established financial software company. One of the pioneers in the modern world of online personal finance, Credit Karma offers an array of consumer financial services, including credit scores, loans and mortgages. Intuit, on the other hand, is famous for tax software like TurboTax and QuickBooks.
At the time Credit Karma announced that it had agreed to be acquired by Intuit, the personal finance company already enjoyed massive popularity and had more than 110 million members, while Intuit had close to 57 million. The deal was finalized in December 2020 at $8.1 billion including cash and stock. Credit Karma’s tax arm was acquired by Square ahead of the merger to avoid antitrust concerns.
But many insiders announced doubts when the possibility of the deal was floated in February 2020. The pandemic was rearing its ugly head and the market was rife with uncertainty. Several big mergers during this period had not come to fruition and many aspersions were cast on the viaibility of a Credit Karma-Intuit deal.
As is the case with many acquisitions nowadays, Credit Karma has remained an independent entity. Credit Karma and Intuit have publicly avowed that they seek to accelerate their growth by combining their powers. But this arrangement has not been without challenges for Credit Karma CEO Ken Lin.
In an interview with publisher Protocol, Lin revealed that among the biggest changes he has faced since the merger is grappling with a different definition of a “boss.” While he previously answered monthly to members of Credit Karma’s board, now he reports biweekly to Intuit CEO Sasan Goodarzi.
Before deciding to sell, advisers for Lin told him to make the decision that was best for him and the company’s stakeholders, but he continued to have private doubts due to the uncertainties unfolding from the pandemic.
But that changed when Goodarzi reached out to Lin and made an unwavering commitment that Intuit would never back out.
Lin said he agreed to the acquisition based solely on the agreed-upon model of continued autonomy and acceleration for Credit Karma rather than on absorption. Times have changed, and acquisitions are increasingly about growth and keeping companies running at an even faster rate, said Lin, citing examples such as GitHub, Microsoft and LinkedIn.
LinkedIn Executive Chairman and Intuit board member Jeff Weiner frequently offered advice to Linn throughout the merger based on his experience with the social network’s merger with Microsoft.
According to Lin, one of the most valuable pieces of advice offered by Weiner is that collaborating and consolidating two companies can be like “death by a thousand cuts” as the team gets bogged down by endless integrations. And to break that paradigm, Lin would have to be prepared to say no when needed.
Lin should keep the greater interests of Credit Karma in his heart and avoid viewing the merger as a popularity contest with people on the Intuit side, and he should be prepared to push back when needed, Weiner advised. Lin, who describes himself as a mediator and peacemaker, found the insight invaluable throughout the process.
Now that Credit Karma is a part of Intuit and the two are aligned in their business ideals, Lin has only one thought on his mind: acceleration.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
Accurate accounting is the bedrock of any successful business operation. Yet, medium-sized businesses—those that have grown beyond the small-business stage...
Distinguishing between independent contractors (1099) and employees (W-2) is a pivotal compliance matter for U.S. businesses. Misclassification can result in...
Spring symbolizes renewal, making it an apt metaphor for startups aiming to secure fresh capital to fuel their next growth...
Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...
For startups seeking sustainable growth, every quarter provides a treasure trove of data—but Q2 data can be particularly revealing. By...
By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...
For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...
Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...
The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...