What is Corporate Development as a Service?
Corporate development is the set of activities that a company carries out to grow and improve its business. This can include mergers and acquisitions, investments in new technologies, partnerships with other companies, and other strategic initiatives. The goal of corporate development is to help a company achieve its long-term goals and create value for its shareholders. It involves careful planning, analysis, and execution to ensure that the company is making the best use of its resources and opportunities. However, building and maintaining an in-house team can be costly and time-consuming. Outsourcing your corporate development department can bring a host of benefits to your company.
First, it lets you focus on your core business while leaving the development work to experts. This means you can allocate your resources more efficiently and effectively, resulting in higher productivity for your business.
Outsourcing this functional area can also provide access to a broader talent pool, allowing you to work with professionals with specialized skills and experience. This can be particularly beneficial for companies looking to grow inorganically through M&A or engage in strategic partnerships.
Additionally, outsourcing also provides flexibility in terms of staffing. You can scale up or down as needed, depending on the demands of your business, without worrying about the costs and complexities of hiring and firing employees. This can be particularly useful for businesses and family offices looking to grow via a one-off transaction, investment, or partnership and don't necessarily have recurring growth opportunities to execute.
Finally, another benefit of using an external corporate development advisor is cost savings. Outsourcing can be significantly cheaper than building an in-house team, as you don't have to worry about the costs of hiring and training employees, providing benefits, or maintaining office space and equipment.
Of course, there are some drawbacks to using external resources for advisory and execution. Communication can be more challenging when working with a remote team, and there may be concerns about intellectual property and data security. However, these risks can be mitigated by working with a reputable outsourcing partner and implementing strong security measures.
Overall, outsourcing your corporate development department can be a smart business decision for many companies and family offices. It allows you to focus on your core business, access a wider talent pool, scale your staffing as needed, and save money. If you're considering outsourcing, be sure to do your research and find a partner who can provide the expertise and support you need to succeed.