How do I start a corporate development function in my company?

Starting a corporate development function in a company can be a complex and multifaceted process that involves several key steps. Here is a general overview of the steps you might take:

  1. Define the purpose and goals of the corporate development function: Before you start building the function, it's important to clearly define the purpose and goals of the function, and how it will contribute to the overall strategy and objectives of the company. This will help you to determine the key activities and responsibilities that will be required of the function.

  2. Establish a dedicated team: To start a corporate development function, you will need to establish a dedicated team with the necessary skills and experience to carry out the function's activities. This team may consist of in-house employees, as well as external consultants and advisors.

  3. Develop a strategic plan: Once you have a clear understanding of the purpose and goals of the corporate development function, and have established a dedicated team, you can begin to develop a strategic plan that outlines the specific activities and initiatives that will be undertaken to achieve the function's goals.

Implement the strategic plan: Once the strategic plan is in place, you can begin to implement the specific activities and initiatives that have been identified, such as identifying potential acquisition targets, conducting due diligence, and negotiating deals.

  1. Continuously monitor and evaluate performance: Corporate development function performance should be continuously evaluated, by monitoring key performance indicators (KPI) such as deal completion rate, time to completion, deal size, and return on investment. This will help to identify areas for improvement, and allow for the ongoing development and evolution of the function.

  2. Ensure alignment with overall company strategy: The corporate development function should be aligned with the overall company strategy, and all decisions should be taken in the context of the overall company goals and objectives. This will ensure that the corporate development function is adding value to the company and helping to achieve its strategic objectives.

It's important to note that building a corporate development function can be a significant undertaking, and may require significant resources and time. However, with a clear plan and the right team in place, it can be a powerful tool that helps companies achieve their strategic objectives and grow their businesses.

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