The Corporate Development Function

Corporate development is responsible for discovering and utilizing opportunities for business with the aim of increasing sales. It can range from acquiring rivals to collaborating with a different company in joint ventures. This kind of function is usually outside of the routines of traditional departments, such as accounting/finance, logistics/supply chain, or human resources control.

Corporate development departments should have excellent interpersonal and business model skills. They must be able quickly and efficiently assess the potential of a deal or project and make informed decisions. The corporate development team should also be able to effectively communicate with other departments within the company and work with other departments.

Often, the goal of corporate development is to grow the company through mergers and acquisitions (M&A). The M&A process is often complicated and requires a lot of research and analysis. The corporate development team must be able to determine the right companies for each M&A opportunity and understand whether the potential transaction is a good match.

There are many ways to organize a corporate development team starting from a single centralized unit to a decentralized model in which the business picks the right members to meet the needs of each situation. It is common for the team to consist of finance and business professionals. Having a strong mix of expertise and experience is essential because it permits efficient sourcing of deals that align with the company’s goals for growth.

The most successful corporate development executives have backgrounds in business or financial management because they need to comprehend and align strategic, technical and product goals with the financial objectives of the company. This can be difficult for those who have experience in marketing but is a crucial skill when it comes M&As.

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