Corporate development is the method of identifying and maximizing business opportunities in order to increase sales. It could involve anything from acquiring competitors to collaborating with other companies in joint ventures. This is usually outside the routines of traditional departments like accounting/finance, logistics/supply chain or controlling/human resources.
Corporate development departments must possess excellent interpersonal and business model skills. They must be able to quickly and effectively evaluate the potential deal or project and make good decisions. The corporate development team must also be able to communicate effectively with other departments within the organization and work together.
Most often, the objective of corporate development is to grow the company through mergers and acquisitions (M&A). M&A is a nitty-gritty process that requires extensive studies and analyses. The corporate development team must to be able to identify the right companies and decide whether the transaction is a good fit.
There are many ways to build a corporate development group, from a single, central unit to a decentralized one where the business chooses the appropriate members for each scenario. It is typical that the team is comprised of https://datenraume.ch/the-honest-overview-of-the-aprio-board-software-features-and-benefits/ finance and business professionals. A broad range of expertise is important to ensure that deals are sourced efficiently and in keeping with the goals of the company.
Corporate development executives who have a strong business or financial background are more likely to be successful. They need to be able discern and understand the strategic, technical, and product goals and financial objectives. This isn’t easy for those who have an experience in marketing, but it’s essential when it comes M&As.