Corporate development is the process of finding and exploiting business opportunities with the ultimate aim of increasing sales. It could involve anything from acquiring competitors to cooperating with other companies in joint ventures. This type of work is typically beyond the normal routines of traditional departments like accounting/finance or logistics/supply chain as well as human resources control.
The corporate development department should have excellent interpersonal skills and a thorough understanding of the business model of the company they collaborate with. They must be able quickly and effectively assess a potential deal or project and make the right decisions. The corporate development team must be able to effectively communicate with other departments within the company and work together.
The main goal of corporate development is to grow the company through mergers and acquisitions (M&A). The M&A process is often complicated and requires extensive analysis and research. The corporate development team must to know the right companies and assess whether the acquisition is a fit.
There are a variety of ways to organize the corporate development team that range from a central unit or From Strategy to Success: The Crucial Role of Data Rooms in Business Growth model where the business chooses the right members for each situation. It is typical for the team to be comprised of finance and business professionals. A strong mix of skills is essential to ensure that deals are procured efficiently and in accordance with the company’s objectives.
The most successful corporate development executives have backgrounds in finance or business as they must be able to comprehend and align technological, strategic and product goals with the financial goals of the company. This isn’t easy for those who have experience in marketing but is a crucial skill when it comes to M&As.