Unique Corp Dev Opportunity
Would be very grateful for your input as I have an exploding offer to consider. Particularly if anyone can offer their view on the upside, downsides, and how to best mitigate the downsides. (e.g. I have for that matter seen 4 bankers, somewhat more senior (Senior associate - Director Level), go to Corp Dev and then back to banking, but most tell me it is a one way street.
I have received an offer for a corporate development role with a tech company.
I would be working directly with the founder of an M&A-driven tech business (200 or so employees) who recently exited a few years after founding, and sold his business at around $100-250m to a large and highly acquisitive tech company with about $10bn market cap. The majority is in earnouts, which in turn will be paid out based on meeting financial goals over the next 5-10 years, which in turn will be driven by mostly inorganic growth. His company originally focused on acquiring smaller tech assets. Acquiring cheaply, and optimising operationally. Being part of the larger group they now have access to more capital and just made a larger transaction at $200m, but believe they could acquire at up to $1bn.
I would be coming on as a Corp Dev associate, working directly with the founder who has been running all M&A processes himself until now. I would learn from him and then be able to take over the function. He might also hire someone above me.
The comp he has offered is normal for corp dev with estimated growth of about 12% per year, and expect that I would lead a small team in 2-3 years.
Given the growth trajectory, transaction experience, and mentor / mentee relationship with a successful entrepreneur, there could be significant upside. I also believe that the large group brand name could become increasingly relevant.
However, I am concerned about the downsides
- Stepping of the IB salary escalator too early - I could more easily negotiate better starting packages as an associate
- Too low initial salary trajectory
- Closing the door to other career paths in finance - not being able to go back if things do not go well or I do not like it