MacFadyen: Strategic Development
June 29, 2009
For the upcoming cover story in the July issue of Mergers & Acquisitions, we looked at the growing population of investment bankers who are no longer too proud to pursue a corporate job. Just a hunch, but this does not bode well for Thomas Pink.
In the past it may have been difficult to pull trends from the corporate development ranks, as the approach to M&A would differ wildly from company to company. Dealmaking as a responsibility often fell on the shoulders of the CFO or even the CEO, while "Biz Dev" may have served as a glorified sales and marketing position. In relatively short order, however, this view has largely changed.
A lot of companies have expanded their corporate development teams, and in the course of this build out have created a process for M&A. It is difficult to quantify, but I would argue that strategic buyers have become better acquirers as a result. While AOL/Time Warner and Mattel/Learning Co. may have set the bar for indiscretion in the late nineties, this time around it was the supposed “smart money” that will be forced to live down the era-defining misses – be it Chrysler, Tribune Co. or WaMu.
One source I spoke with noted that the role has become a fixture at most larger companies, describing that it’s not unusual for a corporate development officer to oversee a team of 15 to 20 people. And as the position itself becomes better defined, that only serves to attract candidates who see it as a career unto itself as opposed to a step toward becoming a CFO or COO.
This is mostly good news for bankers interested in making the jump. But as our July cover story identifies, that move is not without a bit of culture shock.
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