Interesting report from EY on the changing role of corporate development within an organisation. It highlights the fact that corporate development is becoming more integrated with corporate strategy, and M&A is more rigorously aligned with wider corporate strategic focus, rather than opportunistic in nature.
This reinforces our experience that companies seeking an exit via trade sale need to raise their profile amongst their buyer community well in advance of a potential transaction, potentially by developing partnerships and commercial relationships, in order to demonstrate their value to the buyer.
In today's market, where private equity buyers provide a competitive and active pool of potential acquirers, corporate development teams also need to react quickly to opportunities, which is much more likely where the strategic need is already known and understood.
New demands require new skills The emphasis on strategy means that the CDO of the future must be able to face a range of new challenges, acquire new skills, and develop and strengthen relationships with other key departments/executives. Many companies are starting to focus actively on M&A as a route to future growth.