The Corporate Development Function

Corporate development is responsible for finding and exploiting opportunities in business with the goal of increasing sales. It can include buying rivals to working with a different company in joint ventures. This is usually out of the routines of https://datenraume.ch/the-honest-overview-of-the-aprio-board-software-features-and-benefits/ traditional departments, such as accounting/finance, logistics/supply chain, or human resources control.

Corporate development departments need to have excellent interpersonal and business model skills. They must be able to quickly and effectively evaluate a potential project or deal and make good 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 increase the size of the company through mergers and acquisitions (M&A). M&A is a nitty-gritty process that requires extensive analysis and research. The corporate development team has to be able to recognize the right companies and assess whether the deal is suitable.

There are a myriad of ways to create a corporate development team from a single central unit to a decentralized one where the business sources appropriate members to meet the needs of each situation. It is typical for the team to be comprised of finance and business professionals. The ability to have a broad range of knowledge and skills is essential because it permits efficient sourcing of deals that align with the company’s goals for growth.

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