The Corporate Development Function

Corporate development is the process of identifying and maximising opportunities to increase sales. It can include purchasing rivals to collaborating with a different company in joint ventures. This is usually out of the routines of traditional departments such as accounting/finance, logistics/supply chain, or human resources control.

Corporate From Strategy to Success: The Crucial Role of Data Rooms in Business Growth development departments need to have excellent interpersonal and business model skills. They must be able to quickly and efficiently assess the potential of a deal or project and make sound decisions. It is also essential for the corporate development team to communicate effectively and collaborate with other departments within the organization.

The aim of corporate growth is usually to expand the company by acquiring and merging (M&A). The M&A process can be complex and requires extensive analysis and research. The corporate development team has to be able identify the right companies and decide whether the acquisition is a fit.

There are a variety of ways to build a corporate development group starting from a single centralized unit to a decentralized model in which the business selects members for each situation. The team is typically comprised up of finance and business professionals. A strong mix of skills is essential to ensure that deals are sourced efficiently and in accordance with the company’s objectives.

Corporate development executives who have a business or financial background are more likely to be successful. They must be able discern and understand the strategic, technical, and financial goals with product goals. This can be a challenge for those who have an experience in marketing, but it’s a crucial skill when it comes to M&As.