M&A / Corporate Development

Corporate development is an internal function that prepares and carries out a company’s external growth projects. In this M&A / Corporate Development job profile, the work focuses on acquisitions: identifying targets, assessing their strategic value, building a valuation, coordinating due diligence and supporting the transaction through to completion. It turns a growth objective into a case that senior leaders can examine and discuss.

The function connects the company’s strategy with each target’s financial data. It assesses the fit of a proposed acquisition, valuation assumptions, potential synergies and integration costs. It prepares reasoned recommendations and follows the work of the teams involved. The decision to invest rests with the bodies designated under the organisation’s governance and delegated authority; the role holder must understand the limits of that authority.

Depending on team size and the seniority of the position, someone may mainly produce analyses for review or lead a transaction alongside internal leaders. Finance, legal, HR, tax and operations specialists contribute their expertise to due diligence. Corporate development organises their contributions to the case without replacing them. After completion, it prepares for or supports integration with the teams responsible; it does not necessarily lead integration alone.

The term “corporate development” can also cover partnerships or disposals. This profile deliberately focuses on acquisitions, rather than general financial planning or day-to-day operations.

Corporate development, finance leadership and M&A advisers: who does what?

• Internal corporate development works for the acquiring company on the opportunity and execution of an acquisition.
• The CFO role is detailed in a separate job profile. The CFO contributes financial analysis to the case, among other things; how responsibilities are divided depends on the organisation.
• An M&A adviser at an investment bank advises clients on their transactions. They may work with the internal team without taking its place.

An acquisition commits a company to a target whose future value remains uncertain. Corporate development helps management distinguish an opportunity that fits its strategy from an attractive but insufficiently supported case. The quality of the work shows in how targets are prioritised, valuation assumptions are made explicit and matters needing further checks are flagged. A useful recommendation enables a decision with a clear understanding of the case’s limits.

The first risk is confusing strategic appeal with an acceptable price. Financial models show scenarios, expected synergies and integration costs. Their results depend on the assumptions chosen. If those assumptions are left implicit, decision makers cannot assess what would change the valuation. The role therefore needs to explain the main drivers of value rather than present a single figure as certain.

Due diligence raises another issue: financial, legal and operational information must reach the right specialists at the right time. If the role holder focuses only on valuation, an important question may be left without a named owner. Conversely, more analysis without a synthesis delays the recommendation. Corporate development coordinates the work, escalates discrepancies and prepares a clear summary of findings for those reviewing the transaction.

Hypothetical example: a target appears well placed in a market of interest, but its financial plan assumes synergies that the operational teams have yet to confirm. The role holder could present one scenario with those synergies and another without them, then request the necessary checks before recommending what to do next. This illustrates an analytical approach, not an observed result.

The scope of authority also needs to be set out clearly. Taking part in negotiations or preparing an approval paper does not confer final authority to complete a deal. Management must specify who negotiates, who checks the risks and who approves the transaction. It must also appoint the people responsible for integration so that the case’s assumptions are passed to the teams taking over after the acquisition.

• Define strategic and financial criteria for finding targets with the relevant leaders.
• Identify and assess targets based on strategic fit and financial profile.
• Build valuation models and test the assumptions that affect estimated value.
• Assess potential synergies and integration costs in financial scenarios.
• Organise due diligence with the relevant finance, legal, tax, HR and operations teams.
• Summarise findings and uncertainties in a recommendation for the review bodies.
• Contribute to negotiations and follow the transaction through to completion within delegated authority.
• Prepare the handover from the acquisition case to integration with the teams involved.

Useful knowledge includes reading financial statements, accounting, valuation and forecasting. Familiarity with legal, tax and operational matters helps identify the specialists to involve during due diligence. Understanding integration issues also helps avoid treating synergies as just another line in a model. These subjects feature in mergers and acquisitions courses, but no single programme or degree defines entry to the profession.

Professionals may come from investment banking, transaction or strategy consulting, private equity or a corporate development team. These routes can provide different skills.

GetPro’s documented general approach starts with a set of criteria defined before the interview. It distinguishes what can be assessed from career history from what calls for a question or test, and sets an assessment method for each criterion. In the interview, key criteria are explored through open questions and concrete examples. References, sought with the candidate’s prior agreement, also look for examples grounded in the working relationship.

To assess a candidate for this role, you can follow these five steps and adapt the questions to the responsibilities you plan to assign.

1. Define the criteria before the interview

List the role’s responsibilities: target selection, financial modelling, due diligence, negotiation and handover to integration. For each, specify the expected deliverable and level of autonomy. Distinguish preparing a recommendation from final approval by the body designated in your organisation. Use the same set of criteria for all candidates. The ability to explain where their responsibility ended on a deal is a good sign. A claim to have made every decision alone calls for clarification.

2. Examine a past piece of work

Ask for an example of an acquisition the candidate assessed, with confidential information removed. Have them explain the original investment rationale, selection criteria, their personal role and the reasons for dropping or pursuing the target. Ask how they presented their analysis to leaders. Look for explicit assumptions and a clear distinction between findings, estimates and recommendations. If they cannot explain either the data used or the objections raised, explore their actual contribution further.

3. Set a case close to the role

Hypothetical example: present a target that fits the strategy but whose proposed synergies remain uncertain. Ask the candidate to choose what information to obtain, build two valuation scenarios and explain what would change their recommendation. They may show a simple model or describe their calculation. Observe whether they connect the price to the assumptions, integration costs and checks still needed. A valuation with no testable assumptions is a warning sign; a well-reasoned conditional conclusion is a positive sign.

4. Test coordination and communication

Ask how they would organise due diligence with finance, legal, HR, tax and operations teams according to the case’s risks. Who would receive each question? How would they escalate a disagreement between specialists? Invite them to summarise the target in a few minutes as if addressing a review body. Assess the clarity of their recommendation and their ability to identify unresolved points. If the role includes managing a team, also ask how they allocate work and monitor progress.

5. Check responsibilities through references

With the candidate’s agreement, speak to people who worked on their deals. Ask what deliverables they produced, what contact they had with the target or advisers, and who approved key stages. Seek concrete examples rather than a general judgement. If your company lacks valuation or transaction expertise, involve a finance leader or qualified adviser in the exercise. Their role is to assess the technical reasoning; the hiring decision remains with your organisation.