The ‘life-changing and transformative’ effect of Kellogg

Zip, zero, nada.

That’s how Gina Baeg ’25 MBA and Katrina Mercado ’25 MBA described the likelihood that either would pursue entrepreneurship at the start of their Executive MBA (EMBA) journeys at Kellogg. 

“I’m naturally pretty risk-averse, so entrepreneurship wasn’t something I was seriously considering,” says Mercado. “I was intimidated by the failure rates, and honestly, I didn’t yet have the confidence in myself to take that kind of leap.”

Two years later — and just months from graduation — the EMBA Capstone course would enhance how each thought about the complexities of a real-world business situation.

The course is designed as a simulation with students playing all sides of a business opportunity: whether it’s a seller, a board member, head of product development, an investor, head of marketing or the CEO. As the culminating experience of the Kellogg EMBA journey, students draw on what they have learned across the program and from many years of real-world experience, and apply it to a complex, novel and realistic business challenge — independent from faculty instruction. After the EMBA Program, alumni careers are self-directed, and the course is designed to prepare students for future situations.

“My Kellogg MBA changed the trajectory of my life. Through the EMBA Program I’ve met many friends, including my business partner. This support team has been so helpful and responsive during the process of trying to acquire a business, and as an alumna, we have had access to so many events and networking opportunities.”

Split into groups, Mercado found herself on one side while Baeg was on the other. 

“Our team had a conflict of interest and even though it was a simulation, I had genuine stress about the conflict and felt it went against my personal values,” says Baeg. “The Capstone truly mimics real life. The negotiation, the relationships, the interactions between all parties. As a student, you also get a taste for how you might react in different situations. The Capstone really lets you practice the human element of deal making.”

After completing the course, Mercado was considering acquiring a business but hadn’t started the process of identifying, evaluating and pursuing the purchase of an existing privately held company — though the course provided a valuable inside look at business dynamics.

“One of the biggest things the Capstone taught me is that valuation isn’t as simple as applying a multiple to EBITDA,” says Mercado. “It depends on the growth levers a particular buyer can bring to the business, how much they can leverage, what other opportunities they have available and what they believe they can do with the company over time.”

Mercado says she also learned how much emotional intelligence matters in a deal.  

There’s a real human element to acquisitions, and the highest offer doesn’t automatically win. Understanding the motivations and perspectives of the seller can be just as important as the economics.”

As the course neared its end, Mercado and Baeg each set out on their career journeys. Six months post-graduation they had a revelation.

“We realized that our skillsets were highly complementary,” says Mercado. “We decided to join forces, and that ultimately led to the formation of Elytra Holdings.”

“As I progressed through the program, my confidence grew alongside my business acumen, and I was exposed to a whole new set of possibilities for creating wealth and building a career beyond the traditional 9-to-5."

With backgrounds in strategic finance and product and technology operations, respectively, Baeg and Mercado are now nearly a year into an endeavor looking to acquire, operate, and grow SaaS or professional services businesses. 

“My Kellogg MBA changed the trajectory of my life,” says Baeg. “Through the EMBA Program I’ve met many friends, including my business partner. This support team has been so helpful and responsive during the process of trying to acquire a business, and as an alumna, we have had access to so many events and networking opportunities.”

Elytra Holdings is named for the hardened coating that protects a butterfly’s wings. As the company takes flight, Baeg credits Kellogg with creating space to migrate to new careers.

“I can’t remember how many times I’ve said, “Remember this happening during Capstone,” says Baeg. “While I had a strong grasp on the financial side of things and I had even done mergers and acquisitions work, it’s very different pursuing entrepreneurship through acquisition, especially when you are self-funded and it’s your own money. “The Capstone helped us understand that process and I was able to take away key insights on how I might handle a deal on a personal level.”  

Mercado agrees. The EMBA Program created an environment for growth. “As I progressed through the program, my confidence grew alongside my business acumen, and I was exposed to a whole new set of possibilities for creating wealth and building a career beyond the traditional 9-to-5,” she says. “Kellogg was truly life-changing and transformative.”

Read next: When the right people are in the room