What exactly does corp dev vs bankers in a process?
From my limited perspective, it feels like all they do is make us do their modelling / PPT bitch work and sign off on final decisions/ tweak our assumptions and provide us financials, but I am sure that I must be missing something. Can anyone elaborate? Thanks.
Negotiate the transaction documents, and ultimately integrate the business are the two most important.
They also come up with/validate the strategic rationale for the transaction, come up with a view on synergies, get buy-in from seniors and other internal stakeholders.
Generally, you’re correct in that the advisor is getting a flat fee so anything brainless or commoditized (e.g., putting their thoughts on a PowerPoint, running a model, DD tracker, or buyer logs for a sell side process) will be outsourced to bankers.
In a Corp Dev role right now, and this does a good job of summarizing it. Our group, specifically, doesn't get too in-the-weeds with things. We'll do some light modeling, tweak assumptions, and generally focus on evaluating whether a target would be a good fit for us strategically, culturally, and of course, financially.
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