The Corporate Development Function

Corporate development is responsible for identifying and utilizing business opportunities with the goal of increasing sales. It could range from taking on rivals or collaborating with another company in joint ventures. This is usually outside the traditional accounting/finance departments or supply chains/logistics, or controlling/human resource.

The corporate development department needs to From Strategy to Success: The Crucial Role of Data Rooms in Business Growth possess excellent interpersonal skills as well as a good understanding of the business model of each firm they collaborate with. They must be able quickly and effectively evaluate a potential deal or project and make sound decisions. The corporate development team should also be able to communicate effectively with other departments in the organization and work closely together.

Most often, the objective of corporate development is to improve the performance of the company through mergers and acquisitions (M&A). M&A is a nitty-gritty process that requires extensive analysis and research. The corporate development team needs to be able to identify the right companies for each M&A possibility and decide if the potential transaction is a good match.

There are several ways to organize a team for corporate development, from a centralized unit, to a model in which the business selects the right members for each situation. It is typical for the team to consist of finance and business professionals. A broad range of expertise is essential to ensure that deals are procured efficiently and in keeping with the goals of the company.

Corporate development executives who have a business or financial background are more likely to be successful. They must be able to discern and understand the technological, strategic, and financial goals with the objectives of the product. This can be challenging for those with more of an academic background in marketing but it is a crucial capability when it comes down to M&As.