Corporate development is responsible for discovering and utilizing opportunities for business with the goal of increasing sales. It can range from purchasing rivals to collaborating with another company in joint ventures. This type of function is usually not part of the traditional accounting/finance departments or human resource control, logistics/supply chains.
Corporate development departments must have excellent interpersonal and business model capabilities. They must be able to quickly and effectively evaluate a possible project or deal and make good decisions. It is also crucial for the corporate development team to communicate effectively and work closely with other departments within the company.
The goal of corporate development is usually to grow the business through mergers and purchases (M&A). The M&A process is often complicated and requires a lot of research and analysis. The corporate development team needs to be able to find the right companies for each M&A opportunity and determine if the potential transaction is a good fit.
There are several ways to structure a corporate development team including board portals a centralized unit or a model that allows the business to select the right members for each situation. The team is usually made up of business and finance professionals. Having a strong mix of knowledge and skills is essential because it enables efficient source of deals that are in line with the business’s goals for growth.
Corporate development executives with a business or financial background are more likely to succeed. They must be able to comprehend and align technical, strategic, and financial goals with the objectives of the product. This can be difficult for those with a marketing background but is an essential skill when it comes M&As.