Corp Dev / Corp Strat Salaries (and exit options)

Taylor741:

Any views on exit opps after doing a few years in corporate development (m&a)? Is PE reasonable?

Curious too..

integrale:

Now that I'm in the industry (!), I can confirm that $100k is accurate, and that 70+ hrs/week is not out of the question. It's a tradeoff of salary for slightly better hours, much deeper industry knowledge, strategy and operations experience, and high-level exposure and influence.

I hope that PE/VC firms recognize the value of this, especially when combined with my banking expeience. It'd be nice to have the option to step up my comp again down the road...

Anyone in these industries have thoughts on how this backgroud would be received?

Also in the industry, but on the strategy side, and can give the following numbers:

$100K salary $25K sign-on bonus 10-20% performance bonus (you have to really fuck up to get below 10%, very uncommon) 6% 401K match, vested immediately 6% additional retirement contribution, 100% vested after 3 years

So first year all-in is about $150K. I work about 45-55 hours a week on average, with some weeks of 60-70 hours if it is crunch time. These numbers are for a hire with a year or two of consulting/banking experience.

Exits that I've seen include moving internally (and skipping a few levels that non-strategy people would have to progress through), going back to consulting/banking, top 5-10 business schools, and PE/VC (less common).

Really like my job :)

taugei:

Bumping this thread up! Exit ops for Corp Strat & Biz Dev!

Check out harvardgrad08's thread in the Corporate Corral forum.

m2:

I know guys who went PE after corporate development gigs, also quite late into their careers (joining PE funds at Principal levels), but obviously haven't got any data to say how likely this is. Good jobs in any case to learn an industry inside out. You may also end up wanting go get "operating experience" after corporate development as that can be fun too (actually now that I am in VC, I get more and more jealous of the operators (at least those who are killing it...)).

Hi m2, did you mean integration? What did you mean by "killing it"?

anyone? I've read a few anecdotal comments here about co-workers moving into pe/hf after certain corp dev/strat roles.

Banking is probably most likely. PE would need to be very operational or on the ops team.

Ahh I see!

I could be wrong here, but unless you're working for Google/Oracle/IBM/HP/Cisco, you probably won't be doing more than 1-2 deals a year. You would be doing a lot of market research and what not, so I would guess that you would like to be researching a field that a) you like, since you'll be staring at market data every day and b) is something that PEs and VCs would be interested in (ie tech, med, etc). I would think that after Corp Dev, VC would be a logical choice, since VCs operate in a smaller space than PE firms do (PE firms won't put their eggs in one basket, they will generally diversify and hit up a variety of sectors).

I'm a first year IB analyst so feel free to tell me to stfu and give a better explanation

Very curious on this as well and very curious of your story.
4) You are in a unique position, having gone to HSW for your MBA coupled with already having MC and BB M&A experience, to have essentially unshackled yourself from ever caring about "big-name" employment just for the sake of having a "big-name" that's recognizable on your resume. Said another way, you have enough pedigree to be completely free to choose any corp dev opp which pleases you-- regardless of size--with main concerns: career progression, interaction w/ sr. management, direct interfacing with your exit opp VC/PE firms, among others.

An envious position to be in especially relative to pre-MBA individuals who are kind of shackled to pedigree for pedigree's sake, despite bigger and better things at smaller firms. But that's another thread...

1) & 2) Cash balance/liquidity/unlevered balance sheets and acquisitiveness -- no better place than large cap tech. Harvard08 (sp?) will likely chime so I'll refrain. I'm sure others with large cap tech corp dev exp will mention deal flow is massive and size ranges from bolt-on purchases of early-stage tech to bring into the company's fold, to mega transactions. As mentioned many times before tech corp dev -> VC is tried and true...

3) All is valuable...when you get to PE/VC/someHF, eventually you will likely sit on boards of PortCos as Director or be a Board Observer, your strategic business development experience, sourcing and setting up JVs and partnerships will be valuable as a member of operating committees. Yet as a cog in a massive large cap corp dev wheel, it is hard to envision you flexing your sourcing muscles when the CEO/CFO tells you to look @ taking out Yahoo!...

Conclusion? Given your abundance of pedigree, it would be conceivable to steer your search toward acquisitive mid caps where your career progression isn't bogged down, where you can source and lead bolt-on transactions and build a massive network of CEOs and PE firms... unsure if something like this exists but that would be very interesting...

Your choice to make. I know that I would hate to "waste" the pedigree laden launchpad you have created to be a sr. manager answering to 20 guys in a large cap corp dev department where the machine may not allow you to have the kind of growth you deserve.

Thanks for the responses. From what it seems, a move into VC would be the smoothest transition. Makes sense as the career path into VC is pretty "un-formulaic." At every firm there seems to be a mix of former bankers, consultants, entreprenuers, and industry guys with deep expertise; all facets that a Corp Dev role would give you exposure to. Meaning you would be doing things like sourcing deals, developing strategic intitatives with corp strat, working/networking with entrepreneurs, financial modeling, etc.

DurbanDiMangus, thanks for the compliment though I am FAR from being a pedigree. As a matter of fact, there's a surprising amount of my classmates from b-school who were top analysts with significant mega-firm (PE) work. They are even having a tough time finding work these days; it's tough out there right now.

Anyone else with advice, suggestions, insights, etc. ?

I'll just throw out there to consider looking at the big industrial companies as well as the tech shops. So, General Electric, ITW, Emerson, etc.

Given you don't have buyside transaction experience, your biggest barrier will be convincing PE firms that you can execute transactions. As an "experienced hire" PE guy you will be responsible for leading significant aspects of the deal process. While you have IB experience doing M&A, things are vastly different between the buy side and the sell side. My advice to you would be to go to the shop that best develops your ability to execute transactions, wherever this may be.

A quick update. I recently got an offer for Corp Dev position with a F500 company. Most of the work entails acquisitions (occasional JVs and Divestitures). Deal sizes usually in the range of $10M-$50M with very high frequency and high proporation of closes. Most deals being very similiar in nature (think retail/hospitality industry where you'd buy stores/small chains in different regions as part of an expansion plan; though this a completely different industry). Deal teams are very small (2-3 people) given the smaller size of the deals. Junior level (which I would be) responsibilities mostly modeling, in-depth due diligence, and internal reports/presentations (lots of compliance and sign-off required). The modeling is pretty basic given deals are small and involve all-cash with a fairly unsophisticated counter-party. Senior level does most of the documenation (term sheets, etc), negotiating, and closing. Lastly, it's a pretty siloed and unique industry with very few players, each having a pretty large share.

I am having a little trouble evaluating this opportunity given its pretty different from the standard Corp Dev role. Would welcome any thoughts or advice.

Sounds like you all ended up in the same place, you just took a different path. You're getting an opportunity to kick ass, make sure you do that and everything else will fall into place.

i followed a similar path to CD coming in from my firm's finance development program after undergrad. I have seen a few people from my program move into CD and then have left the company to pursue CD career at other F500 companies...it is definitely possible.

FYI I've posted lots of information that you may find relevant on the following thread: http://www.wallstreetoasis.com/forums/the-other-road-corporate-developm…

depends on size of the company - would try to target $150k base; and with potentially up to 25-50% bonus.

I'd wait for harvardgrad08's answer on this. He did a huge thread with info on CorpDev. If he doesn't answer in a couple days, I'd shoot him a PM.

Thanks guys

@discrete: That seems too good to be true even for new york.

@DM I'll search thread started by Harvardgrad08 in the meantime.

woott - i know that's the comp that a couple people I know in another large metro city are earning post-MBA. This is at a very large company. Of course, your cash / non-cash comp mix can be negotiated with the company - but I would target total comp anywhere from $150-$180/190k

That seems really high. I was under the impression that corp dev jobs pay 100-120k. IB and consulting are in the 150-190k range, doubtful you can get that in corp dev. Not that you can't try, I guess. Also, why not look at your school's employment report and see the average comp for corp dev roles. All that data should be readily available.

I don't believe that's too high but:

IBD Associate:

• This is anecdotal.
• Going to be above corpfin, and they also have much higher potential upside if they stick with IB/high finance in general.
• 120-150k salary + bonus of 50%-100% of salary (that I've heard of at BBs).

Management Consultants:

• Going off managementconsulted here.
• Consulting salaries are much more in line with corporate positions (depending on the corporation, of course, tech and financial will pay more than, say, Caterpillar and F35 will probably pay more than F756) though they also have a higher upside).
• Bain 184k all-in, BCG 197k all-in, McKinsey 192k all-in.

from a negotiation standpoint, if you're forced to name the first number - might as well target it high, and then say that you are flexible because you love the position so much. Don't start off with a number too close to your reservation price, because you might get bargained down.

Don't go insanely high, but always throw out the first number. It's generally believed...and there may be some sort of analysis available online...that the final negotiated number is always closer to the first number mentioned.

Regards

$150k is pretty high even for NY, but because it is a privately owned tech company you might get more in base than you would at a similar public. Realistically, you're probably looking at $130k base with bonus of 15-25%. The F50 I worked for started most M7 MBAs @ $100-110k in the corp dev group. This was for people who worked 2-4 years prior to heading to b school. My company was public, non-tech, and located in a relatively low COL region so dings on all counts.

Historically, I have asked HR to provide me with the salary band for the position which has worked well in my favor. It's not often they'll give it to you, but it at least gives you something to play ball with if they are willing to do it.

Target $150-175K all-in. Base is likely to be closer to $100-120K + bonus of 25-50%.

Thanks guys. very informative

do keep us updated!

Not 100% sure, but i'd imagine if your doing M&A that'd help, but at the same time, you'll have to likely get in line behind people in banking or already in PE.

just curious what is your base/sign on at the F50? Do they typically pay year-end bonuses?

I'm still in the interview process, so I'm not sure yet, but it's my understanding that year end bonuses are much much smaller.

Does anyone else have any insight or thoughts on this?

Can't imagine a corp M&A role is closer to PE than a HF! My bet would be either stay with the HF and go for an MBA or go for MM PE.

well don't do the M&A if you want PE...... really only exit opps in Corp dev is moving up the chain of the company faster.

I would think that the Corporate M&A experience would be much more pertinent to PE than research/trading experience that I'm being exposed to mainly in my HF role?

hmm interesting my b

bump!

I have seen the move from corp dev to PE but obviously very industry focused PE. without knowing your role at the HF I would though assume that there are just more buyside options available than coming from a hc corp dev. Stay onboard and start speaking to headhunters to see whats out there.

Well I am a Research Analyst for the hedge fund and also act as a Valuation Analyst for our Valuation Advisory. However, our project/deal flow is next to nothing. I understand that it would be a very industry focused PE, but you think continuing with my current Research Analyst role at my hedge fund and the sporadic Valuation Advisory should be the route instead of trying to go Corp Fin M&A?

Thanks!

From a recent phone interview I was told that working with a company that is divesting their portfolio companies will give a lot of PE exposure, doing buy-side will expose you more to the investment bankers and help with getting in that way if they like working with you. At the end of the day it's what you make of your opportunities and network.

Bumping an old thread...

I currently work at a large publicly traded healthcare services company. Did corp dev/acquisitions internationally for 1.5 years, now finance manager for two of their business divisions. My question is: does having the "operating experience" help with breaking into a healthcare focused private equity firm? Or should I emphasize my M&A experience in my networking? Thanks to all opinions..

~90k allin.

What exactly does corp development do? I just started as an associate and if I don't get into a decent PE/HF, I might just do corp development. Is corp development internal strategy? or is it more like internal M & A?

is that 90k only attainable for someone with 2 year ib analyst experience? or could it be had out of undergrad

What you do depends a lot on the specific company and group. A couple examples:

-Friend who used to do banking now works at eBay and focuses more on strategy than M&A. As in which projects to pursue, new capabilities they should add... it's less of a transactional role and more of what consultants normally do. Except unlike consultants people actually listen to her. :)

-Friend who did banking for a year is now at Yahoo! and is neither strategy nor M&A - he is managing one of their business units. So his job is establishing partnerships, meeting with potential partners and a lot of calling/emailing. Very little financial analysis, in fact it's barely even a finance job.

At companies like IBM/Oracle for example it's more of an M&A role considering how acquisitive they are. But the range is pretty wide.

You'll definitely take a pay cut, the $90-100K I quote is all-in and often their compensation is in stock. Expect probably $70K-80K base with a very small bonus.

Those job descriptions sound pretty ideal to me. How competitive is it to go into firms like that out of a 2 year analyst stint from a middle range firm/group/analyst bucket? Also, what does compensation look like as you move up (just an estimate as I'm sure there is a large variance)?

Not super competitive coming from IBD or strategy consulting. Post-MBA level is about 100-130k allin and you could be at 200k 6-7 years after that. A SVP/Strat could make 400k+ at a blue chip, with options, sky is the limit (relatively speaking).

This is VERY variable by industry. Obviously go with whatever interests you, but in general CPG, Health and Energy are probably the most stable/lucrative (short of hitting it big at a startup).

Interesting. I'm assuming that there is more variability in ascension, when compared to IB or MC. How long would it take for a bright and politically astute candidate to hit it big?

Also, at what level do options start to kick in?

I am also interested in any info on this, good places / headhunters for these opps on the west coast, etc.

Thanks for any info provided.

bump

I'm meeting with one of my friends who does corp dev/strategy now... I'll ask him for the headhunters he used and get back to you. I was never considering it myself so don't have really good references in that area.

I'd be interested to hear as well