Corporate development is mandatory in companies of any type and scale. It is the process through which a company improves the working culture, environment, the various operations and overall working of the company.
Corporate development is necessary when you want to deliver the best services or products to your customers but also to reduce competition in the market. CD is to outperform your peers and also the company’s past performances.
Corporate development or Corp Dev is the strategic planning to restructure business and to bring progressive organizational changes to improve the productivity and profits for the company.
However each company has a different way to appoint a corporate development team for their company. Some companies have full-time team working for them whereas some companies hire a team for a specific period of time whenever they feel it is necessary.
Let’s see some types of Corp Dev teams
- 1 Centralized Team
- 2 Hybrid Team
- 3 Decentralized Team
- 4 What do Corporate Development professionals do?
- 5 Career in Corporate Development
A centralized corporate development team works internally and externally to improve the already business connections and to create new ones. The team consists of qualified corporate development candidates with proper qualification.
Hybrid corp dev team consists of very few individuals who depend on networks inside and outside the company to make decisions for the corporate development of the company. They are either not allowed or do not possess the right knowledge to make a firm decision for the company.
Companies who do not have a team of appointed employees for corporate development they work with a decentralized team for the same. The people in a decentralized team consist of employees from different departments of the company who in a certain time frame discuss and take decisions for the development of the company.
Corporate development teams can be divided into these three types. A centralized team is the most preferred type and decentralized type of a corporate development team.
What do Corporate Development professionals do?
Merger and Acquisitions
The main attention of corporate development officials is towards the M&A of the company. Bringing in new mergers for the company for various reasons will expand the business of the company. M&A revolves around the idea of buying, selling and bringing in contracts with other companies for certain products or assets.
Bringing new ideas and strategies
Without a doubt, important job handled by the CD individuals is strategy making for the betterment of the company. Studying, analyzing and understanding the working of the company and the current situation of the market is very important. Along with this, study shaped the strategies according to the people you are catering to.
The pros and cons of each move made by the company have to be estimated to have precautions for the any dangers posed by the new strategies.
Therefore, forecast models are made before bringing in any new strategy or change in the working of the company.
How much profit is the company making? If it is less, why? If it is more than expected, how? The strategies and forecast models made for the capital of the company are the answers to these questions.
Working with government and regulators
The CD team also handles when there is involvement of government officials and certain regulators in the working of a company. For this, the candidates should be well aware of the different acts in the IPC related to corporate companies.
There should be a visible increase in the productivity of the company adhering to the plans made for the company by the corporate development team of appointed. The team has to be considerate about the smallest details while preparing plans to increase productivity.
Communicating the company strategies to the existing shareholders or to potential shareholders is also a part of corporate development. Undoubtedly, the CD professionals have to attend conferences, shareholder meetings, investor days and many more events to be in the loop with the shareholders of the company.
Study of the market need
Every new strategy has to understand the pros and cons regarding the scenario of the market. If there are any alterations or changes in the need of the market, changes in the expectations of the customers, etc the continuous study must be held for this.
Managing the portfolio
Updating the portfolio of the company is very necessary.CD teams works efficiently on updating the portfolio. Potential employees to apply for jobs in the company, customers are updated about services, merged companies also are well aware of the changes with every update. Especially, this keeps the transparency of the company intact.
These are a few things that the corporate development team takes care of. Definitely, the team fulfills many other tasks. This also proves how important it is for a company to hire a good and qualified corporate development team.
Career in Corporate Development
MBA students are eligible to apply for corporate development jobs in corporate companies. However, people often diverge from investment banking to CD because the work frame of CD requires the same approach needed in investment banking.
Though there is visible gap in the average pay of investment bankers and CD officials.
Furthermore, the candidates have chances of becoming the Chief Financial Officer. Companies pay CFO’s pretty well and it is a respected position.
Finally, you have reached the end of the article. I hope this was helpful and cleared all the doubts of corporate development.