Corp Dev: M7 vs. High Growth SaaS

Based on the most helpful WSO content, here's what you need to consider:

1. M7 Companies (FAANG/Big Tech):

   • Pros: These companies are known for their massive M&A budgets, especially with the AI narrative driving significant capital allocation. They offer strong brand recognition, which can be a major asset for future career moves. Additionally, the stability and resources of these companies can provide a solid foundation for long-term growth.
   • Cons: Climbing the corporate ladder in such large organizations can be challenging due to the sheer size and competition. Equity upside might be more limited compared to a pre-IPO SaaS company, as these companies are already mature.

2. Pre-IPO SaaS (Databricks/Figma/Miro):

   • Pros: These companies often provide significant equity upside, especially if they go public or are acquired in the near term. The high-growth environment can also offer more hands-on experience and faster career progression. Being part of a smaller, dynamic team can allow you to make a more noticeable impact.
   • Cons: There's inherent risk with pre-IPO companies, as their success is not guaranteed. Additionally, while the equity upside can be substantial, it’s tied to the company’s performance and exit timing.

3. Comp Progression and Exit Opportunities:

   • Comp Progression: In general, pre-IPO SaaS companies might offer higher upside through equity, but M7 companies provide more predictable and stable compensation packages. Long-term, M7 companies might also offer better benefits and perks.
   • Exit Opportunities: Both paths can lead to strong exit opportunities. M7 experience is highly regarded and can open doors to other corporate development roles, strategy positions, or even venture capital. Pre-IPO SaaS experience, especially if the company performs well, can position you for roles in other high-growth startups, venture capital, or even private equity.

4. Corp Dev Case Study Interviews:

   • These typically involve tasks like building a simple M&A model, evaluating synergies, or analyzing a potential acquisition target. You might also be asked to present your findings and recommendations. Strong financial modeling skills, strategic thinking, and the ability to articulate your rationale are key.

Recommendation: If you're looking for stability and brand recognition, M7 companies are the way to go. However, if you're willing to take on more risk for potentially higher rewards and faster career progression, the pre-IPO SaaS route could be more attractive. Ultimately, it depends on your risk tolerance, career goals, and the specific opportunities each role offers.

Sources: Q&A: Corp Dev Professional at Large-Cap Tech Company, Evaluating Corporate Development Roles, Corporate Development Manager - Q&A, The logic behind going into a Corp Dev/Strat for work-life balance?, The Other Road: Corporate Development Associate Fielding Questions