Left a Partner role at an MBB a couple of years ago to lead the CorpDev team at a fast-growing pre-IPO tech company
Still relatively early days for me and the company, but it has been a great ride so far
There are several things I've been surprised by on the positive end:
1. Total comp turned out to be considerably higher so far (albeit riskier & mostly in equity) than I would have seen as a consulting partner
2. Our ability to attract top talent (specifically onto the CorpDev team) was a bit better than expected
3. Some of my closest friends are on our exec team, I get a great deal of satisfaction from working with them every day to solve interesting problems that impact our company and industry in a meaningful way
And also a few surprises on the downside:
1. The capability level across the org is more mixed than you'd find at a top bank or consulting firm, I spend a large portion of my time cleaning up dumb shit as a result, I've found this to be super annoying
2. My wife and I have both worked hard and have ostensibly made enough money on paper to be 'post-economic' + I guess I've checked off enough of the 'prestige' boxes at this point in my life, but I don't feel all that excited about either of these things - instead I find myself spending a lot of time thinking about how I can be a decent human & wondering if staying on an intense career path will help or hurt that
Realize the scope of CorpDev can vary considerably, in our case the work consists of a relatively even mix of M&A, strategy, and fundraising
Happy to answer questions (e.g., rationale, experience, or how I did it) for anyone who is interested
What pushed you to leave the partner role at your firm?
Thanks for the AMA.
For someone considering a similar role, can you provide more detail on your comp and how it compares relative to market?
Also can you provide more details on what tech sub-segment you're in and how you source deals?
Congrats! Sounds like a great role. Before the world melted down, I had just started my search looking for Corp Dev roles at the Director/VP level. Did you find any recruiters or other resources particularly helpful?
Super interesting AMA and very relevant to my areas of interest.
Given that MBB partners make high six/low seven figures, how did the company "bridge" the gap on compensation? I'm not asking for specific numbers but more the general sales pitch. Did they say that they can't give you that much cash but that you will receive enough RSUs that when they go public or get sold, the cash at current market valuation will more or less equal your MBB comp?
Given that corp dev is modeling heavy and hence draw mostly ex-bankers, was there a steep learning curve for you? How much of the MBB work is directly applicable to corp dev?
I used to work at a FAANG tech firm in corp finance/corp dev and found that the AVERAGE employee was less impressive than the average MBB or top banking employee. But on the top end, the talent was pretty solid. Have you found this to be the case as well?
Thanks.
where do the junior members of the team (corp dev) usually come from?
How long do they usually stay in the team/field and if they leave, where do they go?
What's the career trajectory of a person in Corp dev? (junior, senior etc. )
Thanks for this!
I know it's in the early days of your Corp Dev role but maybe you have some anecdotal experiences from your management consulting days.
When you think about strategic framework M&A, (gaps in products you are trying to fill, additional capabilities, new markets, financial) how do you prioritize the attributes and/or potential targets?
What tips do you have to keep the executive team disciplined with the agreed upon M&A strategy (not get distracted by a shiny inbound)? For instance what if there is an opportunity the CEO wants to take a look at an opportunity that may not be strategic. I guess this is managing upwards 101 but wondering how you would handle this type of situation. This might not be an issue since it sounds like you have a great previous relationship with the exec team.
Typically, when you get an opportunity (post NDA / pre-LOI) what does the deal team consist of? Is it just Corp Dev or is it a mix of a few business, Corp Dev, and legal?
Typically, do you see the M&A team making the business case or do expect the business leader to take ownership to build the business case? From my perspective, its CD's job to drive the process but the business leader should make the case (since they will be the ultimate owners of the P&L).
I came to an organization that was pretty new to M&A processes, to your first downside point, how do you handle internal functional teams that might not know what to look for during diligence.
Sorry for all the questions, I understand if you don't have time to answer all the questions.
TIA
What's the makeup of your direct team? I have a tech background, work in consulting as a tech consultant who does a lot of delivery and a bit of strategy. Would you see someone like me working with you on your team?
Thanks for doing this. 1) Can you give a rough sense of comp (cash and equity)? Did you negotiate this and if so, how did the negotiations go? 2) What are the hours like? Do you feel like you do any "BS" work? 3) How did you come across this role? Any particular recruiters that are helpful? 4) How big is your team? 5) How many years of experience are typically required for head of corp dev roles at pre-IPO tech companies?
Great answers, super helpful responses.
I've done a similar route as the OP. Experiences vary widely based on the company you choose. What he says regarding talent is true.
Compensation is only close because of options. Private company options, as we've seen since Q4, are valuation challenged, illiquid, diluted, and really should be seen as a bonus vs. part of your annual take-home.
Personally, working with some of the functional teams makes me want to puke, so I'm probably going back into consulting / IB / PE whatever.
Has the OP answered any of the questions? Sounds like in your post s/he has but maybe I’m not seeing them for some reason.
If you were interested, could you go back to your firm as partner easily?
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