Corporate Development

How to Build a Successful Corporate Development Function

The ideal time to build a corporate development function often varies, especially in private equity, where inorganic growth is a key driver. While large corporations have long used corporate development leaders to navigate complex deals, private equity firms increasingly rely on them to accelerate growth after an acquisition.

Some firms bring in corporate development talent before acquiring a platform. Others wait until later in the holding period or even during the exit phase. The right timing depends on the firm’s investment strategy, the company’s maturity and the level of expertise needed to drive growth.

Hiring Early vs. Later in the M&A Lifecycle

For smaller businesses, hiring a corporate development leader early (immediately following an acquisition) can be particularly advantageous. These companies typically target candidates with 7-10 years of experience who can grow with the business. This is a cost-effective move and appeals to individuals eager to join a growth-oriented organization early and secure equity upside.

Some firms wait 12-24 months into the hold period. At this point, the business is more stable, and hiring goals shift toward individuals with proven corporate development or private equity experience. These professionals, sometimes referred to as “rising stars” or “proven commodities,” are capable of managing the full M&A lifecycle. They often desire to build and eventually lead a team.

Hiring closer to the exit phase typically requires a more senior leader with deeper experience. These individuals usually require a larger compensation package and play a crucial role in integration and in securing final value-enhancing acquisitions. Junior candidates may view this as risky, given the limited timeline and uncertainty after a sale. However, experienced leaders are often unfazed. Many welcome the opportunity to complete multiple deals in a short period and are comfortable moving on once the acquisition is complete.

Regardless of timing, the key to building a timely corporate development function is aligning your hire with your growth objectives.

Choosing the Right Corporate Development Profile: Hunter, Manager or Integrator

Once the timing is clear, the next step is identifying the type of corporate development leader your organization needs. Three common profiles dominate the talent landscape.

Hunters are deal originators. With at least 7-10 years of M&A experience, often starting in investment banking or private equity, they are adept at sourcing proprietary opportunities through cold outreach and networking. Organizations with capital to deploy are becoming more selective, so having someone who can identify and pursue high-potential targets is critical.

Managers focus on execution. Typically less experienced than hunters or integrators, they are often former bankers or private equity associates with 4-6 years of experience. Their strength lies in buy-side diligence, financial modeling and process management. They usually report to M&A-savvy CFOs and support deal teams without necessarily participating in strategic planning. These professionals are looking to increase their transaction reps and advance their careers.

Integrators ensure post-deal success. With the high volume of acquisitions in recent years, integration has become a top priority. These leaders align teams, processes and systems after a transaction to ensure long-term value creation.

Corporate Development Titles Definitions: VP, SVP or CDO?

Beyond selecting the right profile, organizations must consider the scope of the role and the appropriate title. While actual job titles may vary, there are three common tiers of corporate development leadership.

Vice President of Corporate Development: Often an individual contributor in lower- to middle-market companies, this “full-stack” M&A professional can source, model and manage due diligence. They usually report directly to the CEO and focus exclusively on pre-close work. Integration responsibilities are rare at this level.

Senior Vice President of Corporate Development: Found in larger or more complex organizations, SVPs take on broader responsibilities. They typically manage a team of 3-7 people and support multiple products or service lines. Their focus remains on sourcing and closing deals, but they generally do not handle integration.

Chief Development Officer (CDO): This C-suite leader manages the full spectrum of inorganic growth, including sourcing, execution and integration. In certain sectors, such as healthcare, the CDO may also lead strategic initiatives like payor contracting or physician recruitment. This role is best suited for companies that need a versatile leader to support enterprise-wide growth.

When deciding which level of leader to hire, two key questions can help guide your decision:

What is your budget? Higher-level titles come with higher compensation expectations. For lower-middle market companies, a vice president may be the most feasible option. If your organization has the resources and needs someone to manage a small team, a senior vice president may offer more strategic support.

What is the scope of the role? If your corporate development leader will focus strictly on M&A, a vice president or senior vice president may be sufficient. If your investment strategy requires broader operational or strategic leadership, a CDO may provide greater value, even if the upfront investment is higher.

The takeaway:

Corporate development plays a pivotal role in value creation across private equity portfolios and in larger corporations. Whether you are acquiring your first platform, preparing for an exit or heading toward a merger, aligning the right leader with your company’s growth objectives will shape your success. Choosing the right timing, the right profile and the right title ensures that your investment in talent supports your investment in M&A.