Why does a firm need internal department of Corporate Development when there's already consulting firms?

Especially when they can do the job for them just as well if not better. According to my research, keeping an in house corporate development operation is just as costly as seeking consulting services from third parties such as the MBB and the other top consulting firms.

Secondly, I've also noticed that some firms still consult MBB/others when they have an in house corpdev ongoing operation. Why is that? Why do you need someone from outside when you're employing the best professionals who can carry out the assignment just as well. Help me understand?

 

1: Information Control

2: People running it are internal to the firm and have a better understanding of the culture/strategy/etc.

3: It's MUCH cheaper to hire the MBB consultants forced into other jobs due to "up or out" policies than it is just to hire the firm. Upside is you're actually going to get guys with 3 years or so of experience that way vs. the MBB firm staffing some new MBA on your case (who most likely isn't any smarter than your own MBA hires).

 
anachistgt3:
Especially when they can do the job for them just as well if not better. According to my research, keeping an in house corporate development operation is just as costly as seeking consulting services from third parties such as the MBB and the other top consulting firms.

Secondly, I've also noticed that some firms still consult MBB/others when they have an in house corpdev ongoing operation. Why is that? Why do you need someone from outside when you're employing the best professionals who can carry out the assignment just as well. Help me understand?

Your research is wrong. For instance, our in house legal personnel is as little as $40/hr. Our outside legal counsel is $400+/hr plus all expenses.

 
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