Difference between corporate finance/development and accounting?
I'm just kind of confused about the difference between these two departments.
The accounting department at a F500 company prepares and analyses the money that goes in and out of the company through financial statements.
So what is it that the corporate finance or corporate development team do?
Accounting is typically part of the finance organization and would include things like the Controller's office. Corp Finance includes Controller, Treasury, FP&A, M&A (Corp developement). Think of it this way: Controller is accounting and reporting, Treasury is managing the cash (deploying short term assets for potential arbitrages, with currencies, managing and issuing debt), FP&A is exactly what it stands for - planning and analysis including budgeting, M&A = new business opportunities. They'll all have VPs and directors and ultimately all role up to the CFO.
This was a pretty good explanation.
Just one thing I'm curious about, why would a F500 company need an in house M&A team? Is this if they were looking to acquire another company?
Is this what corporate development is?
If you trust a 3rd party to do all the DD for a large deal, you deserve whatever nightmare is coming your way.
You would be surprised how many and how often IBDs pitch M&A ideas, oftentimes the same thing, because they want to make money. It helps having an in house group to sift through the bullshit, formulate M&A strategy with solely the company's interests, and then be able to execute the deal with less fees.
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