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Corporate development is the process of identifying and maximising opportunities for business to increase sales. It can range from acquiring rivals to collaborating with another company in joint ventures. This type of work is typically beyond the normal routines of traditional departments like accounting/finance, logistics/supply chain, or controlling/human resources.

The corporate development department needs to have excellent interpersonal skills along with a clear understanding of the business model of each company they collaborate with. They must be able to swiftly and effectively evaluate a possible deal or project and make informed decisions. It is also important for the corporate development team to communicate effectively and work closely with other departments within the company.

Often, the goal of corporate development is to improve the performance of the company through mergers and acquisitions (M&A). M&A is a complicated process that requires extensive research and analysis. The corporate development team needs to be able to determine the right companies for each M&A opportunity and assess whether the deal is a good match.

There are a myriad of ways to build a corporate development group starting from a single centralized unit to a decentralized one where the business selects members for each scenario. The team is usually made consisting of finance and business professionals. A diverse set of skills is crucial to ensure that deals are procured effectively and in accordance with the company’s objectives.

The most successful corporate development executives have an education in business or financial management as they have to align the strategic, technical and product goals with the financial objectives of the company. This can be a challenge for those who have experience in marketing but is essential when it comes M&As.