The Corporate Development Function

Corporate development is responsible for identifying and exploiting opportunities in business with the goal of increasing sales. It can include everything from acquiring competitors to cooperating with other companies in joint ventures. This function typically falls outside the routines of traditional departments like accounting/finance, logistics/supply chain or controlling/human resources.

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

Often, the aim of corporate development is to improve the performance of the company through mergers and acquisitions (M&A). The M&A process is usually complex and requires a lot of analysis and research. The corporate development team must be able to identify the right companies for each M&A opportunity and assess whether the potential transaction is a good match.

There are a myriad of ways to organize a corporate development team from a single centralized unit to a decentralized one where the business chooses the appropriate 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 since it allows for efficient acquisition of deals that align with the company’s growth goals.

Corporate development executives who have a business or financial background are more likely to succeed. They should be able to discern and understand the strategic, technical, and financial goals with the objectives of the product. This can be difficult for those with more of a marketing background, but is an essential capability when it comes down to M&As.

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