corporate development regrets?

bump

At my firm, corp dev is typically just a stint for people before they roll-off into a more operational management role. Have you considered that path or is your preference to stay in a finance role?

I was in the same boat at you in my first Corp Dev. Role. The lifestyle was better but I had regrets about the move I made from IB given the comp was not market, obscure progression among other issues I had with the role (to be fair, some of the issues fell at my feet as well). I did a fair amount of PE recruiting.

Fortunately, I was able to move another Corp Dev role as bump in title and compensation where I enjoy the role a lot more. I would say take some time for introspection and see if it is Corp Dev itself or the role with the Company that is causing this sense of regret.

I'd say after doing two separate stints in Corporate Development, I will say the following....the work is interesting most of the time and you get to be "in the know" with the execs but from a career trajectory perspective it isn't that much different than a finance person within the organization (neither is the pay).

With that said, corporate development is a mixed bag so there could be some companies that offer the perfect combo of comp, work experience and hours (most likely tech) and some that are absolutely awful to work for.

I would entertain the idea of going back into Corporate Development but I think I would be much more picky about the company itself vs. just trying to get a corp dev job. I think I'd lean towards trying to find a start-up and trying to have some sort of equity / skin in the game (which I think might be sort of rare).

Started out in M&A consulting, lateraled into Corp Dev when I wanted to get off the road. It's been a good run but after a couple of years it's getting old. Different deals, different players, same headaches. I'd be lying if I said I wasn't considering other opps though for now I'm keeping it internal.

I started in corpdev right out of college. At both jobs - my hours are/were on the higher end for a corporate role - probably 60-70 hours avg week, 80+ hours in crunch time (we have a lot of crunch time), but I don't mind it.

However, I'd jump off a building if I were moving around PPT logos, etc. for that amount time - but the work is usually super interesting and fairly impactful, except for some of the reporting and operational stuff that I get pulled into since we run a very lean/ flat organization. Also have had super high visibility in the org - last job my boss reported to the C suite, this job my boss is C suite, and I work with them frequently. I consider the hours a fair trade to participate in the sausage making at the highest levels. In the spirit of disclosure, my comp package is pretty good and I am in a cheap area.

I honestly don't really have a plan except to keep doing what I've been doing. I just got promoted, though its more a title change than anything else as my responsibilities, etc. have grown and evolved pretty organically and there's no major change coming with the new title. As long as we stay acquisitive and I keep my boss/ management happy, I'm good. I've gotten some inbounds from recruiters for other corpdev/ MM PE, but nothing that really piques my interest. If we get bought one day, I'll get my equity payout and then figure it out from there.

As others have pointed out, corp dev is a mixed bag, and your experience is highly dependent on the company you work for and the team you work with. Corp dev is not like IB where even if you're at a "no-name" boutique, you still get similar experience to those at GS/MS (obviously on a smaller scale and sometimes with less complexity). In corp dev, you could be at a company that talks about M&A, but never engages in it, and unlike in IB, you can't just "switch teams".

I empathize with the comp "issue". I took a ~50% pay cut after I left IB for corp dev, and while it was frustrating seeing my friends who stayed in IB make twice as much or sometimes more than I did, I always reminded myself that I took that pay cut for better hours. It's a trade off.

How old are you and how much do you make in total comp?

‪I went corporate strategy -> operations in our company’s management development program. My pay went up a little, but my weekly hours, stress, responsibility practically doubled. Nevertheless I’m more satisfied .

Use your time in corporate development/strategy to build up your network, as you often have an amazing access to top brass. It makes jumping into a functional role a lot easier.

That being said, that’s one of the reasons I jumped. If you stay in corporate strategy too long, especially if you got in straight out of school, eventually you’re pigeonholed and there’s not much runway ahead

I spent ~8 years in Corporate Development at a Fortune 500. I was fortunate in the fact that M&A was a core focus at the company and I was exposed to a lot of deal activity over the years (14+ deals). I personally was not interested in a Corp Dev / FP&A role that is commonly found at less acquisitive companies. Due to some luck through attrition and capitalizing on the opportunity, I was able to get a lot of great deal exposure early on in my career.

With that all said there were definitely some positives and negatives to the experience.

**Pros: ** * The deal experience was great. I was able to take on roles well beyond helping with the internal processes early on in my career (source, manage/lead and negotiate deals after my 3rd year at the company). Again some of this was due to attrition and being at the right place at the right time. I left feeling very confident I can take a deal from sourcing to closure on my own if I ever wanted to move back into M&A (Corp Dev, PE, Family Office, Search Fund, etc,)

• The C-Suite exposure was great. I was regularly in meetings with the C-Suite and other execs at the company. It did take a few years to grow beyond the Excel / PPT jockey in the corner who was there to provide quick answers to nuanced / detailed questions. The exposure to how the C-Suite operated was valuable. It was very interesting to see how are made (more on this in the cons).

• Great Network: Many of the senior leaders have move on to take C-Suite roles at other companies. If I ever want to move back into corporate, there are a number of CEOs and CFOs I would feel very comfortable calling for advice/referrals/opportunities .

Cons:

• The pay relative to PE is lower and there is no upside opportunity outside of an annual bonus. No matter how the acquisition performed, pay did not change.

• I often felt that my opinions on deals were completely irrelevant. At the end of the day, you are not the decision maker, even if you become a subject matter expert in an industry or niche. I would never expect to have my opinion matter much as an analyst/manager, but by the time I made Director I felt as though I was able to contribute a lot of very specific industry experience on acquisitions. I cannot count the number of times I disagreed with the decision to move forward or pass on a deal. Executing a transaction that you do not believe in can be frustrating. This may not be unique, but it was a major frustration for me personally.

• Often times strategic decisions would be made well before any work on a project was completed. We'd conduct analysis and research to support a decision vs. use analysis and research to help reach conclusions. I definitely got sick of doing work to go through the motions and facilitate internal procedures and processes. Work simply felt like busy work at times.

• Corporate politics. The company valued individuals who "played the game" vs, actually did the bulk of M&A execution.

• Diligence team members came from operating companies and were assigned to conduct diligence on top of their day job, Team members were often inexperienced, not motivated and difficult to manage.

Happy to answer any additional questions.

Bump - not in corp dev but in a corp strategy role. Feeling the same way re: pay and career progression, particularly after starting in an IB role prior. Initially thought I would go long term in corporate after the move but not sure anymore. Has anyone moved back into IB or made a move into another financial services role after a corporate stint? Have 1.5 years IB experience and corporate since then. Not sure if it would make sense to move sooner rather than later (1 year vs 2-3 years) before I get more stuck.

Bump - in a very similar situation, would love to hear other paths now from corporate

How many of you have moved on to other roles, and what sector is it? Would you like to share the reasons that supported your decision?

I have no regrets.

I didn’t join CD to do it long term. It was always a stepping stone right after law school to allow me to get into PE. I joined a CD group that is “pure” deal work. Strategy is done by another group (unlike the CD internship I did in undergrad which was very much a hybrid group). I am getting to experience the entire deal process in a heavily regulated industry (and my previous CD experience was in a different heavily regulated industry) from an investor perspective in a way where I have regular contact with PE firms in my industry.

I have been talking with PE firms and headhunters and I am in a strong position for PE roles. Will I end up at a KKR or Blackstone? No. But outside of one specific team within those types of firms, I don’t want to.