Board members, strategy team, corporate development, business leaders, functional heads, and executives
Corporate development must work with the CEO, board members, and the strategy team and get clarity on how they view the world. Aim to answer the following questions:
After answering the basic questions, identify the overall corporate strategy. Define how the organization wants to win within this worldview, and how it can best position itself to succeed and drive profit. Have a clear vision and goal.
Corporate development must pass down the mission to the business leaders. They need to collaborate and identify where the company currently stands, map out existing capabilities, and compare them to the vision to identify the gaps. The key is to have a strong partnership in a regular cadence with the business leaders to see the areas where they can benefit from acceleration.
Not every company has unlimited funds for M&A. Corporate development must work with the CFO and understand the limitations of inorganic growth funding. This sets the tone for the type of companies the organization can target.
Now it’s time to find target companies to fill the gaps and fit the budget. Create an M&A thesis that should answer the following:
If no dedicated leader takes responsibility for the success of the acquired business, the M&A will fail. Ensure leadership buy-in before proceeding with the deal.
M&A touches every facet of an organization. Getting buy-in from all the other constituents within the company that the transaction will directly impact is critical.
If successful, corporate development is now in a position where they can proactively pursue deals to help achieve the corporate strategy.