Corporate development is the process of identifying and utilizing business opportunities with the aim of increasing sales. It could range from acquiring competitors to cooperating with other companies in joint ventures. This function is usually outside the traditional accounting/finance department or From Strategy to Success: The Crucial Role of Data Rooms in Business Growth logistics/supply chains, human resource management or control.

The corporate development department needs to 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 evaluate a possible project or deal and make informed decisions. The corporate development team must also be able to effectively communicate with other departments in the organization and work closely with other departments.

Often, the goal of corporate development is to expand the company through mergers and acquisitions (M&A). The M&A process can be complex and requires extensive research and analysis. The corporate development team has to be able identify the right companies and assess whether the deal is suitable.

There are many ways to organize a corporate development team from a single centralized unit to a decentralized structure where the business picks the right members for each situation. The team is usually made up of finance and business professionals. A mix of knowledge and skills is essential since it allows for efficient sourcing of deals that align with the company’s growth objectives.

Corporate development executives with a financial or business background are more likely to be successful. They must be able discern and understand the technological, strategic, and financial goals with the objectives of the product. This can be challenging for those with more of a marketing background but it is a crucial capability when it comes down to M&As.