What are signs of a good PortCo Corp Dev/FP&A Experience?
I recently joined a PortCo doing Corp Dev/FP&A, with the main focus being M&A and taking over ownership of the diligence and acquisition processes. Having some slight second thoughts at the moment and I am trying to make sure if they are warranted or if I'm overthinking things. From a responsibility and experience standpoint, what are some aspects of the role that I should make sure I get involved with to ensure I get a good experience and can lead to good exit opportunities later down the road? At the moment I'm worried this may mainly be a project management type of role where I'm managing the diligence process and providing updates, but not getting into the nitty gritty of models, budgets, or forecasts. Wondering if I'm overthinking things, or if I should pursue other roles in the meantime to not waste time.
For example, I had thought Corp Dev would involve more financial modeling or forecasting, but so far it doesn't seem like the case. We are pursuing multiple acquisitions which I know is obviously a good sign. But most times we take their revenue and bottom-line EBITDA numbers based on the last year, calculate what EBITDA would be on our cost structure, and create a purchase price based on a multiple of revenue. Do Corp Dev teams usually perform DCF's or 3 statement models, or is that usually done by the PE Sponsor team?
But the position does get a lot of face time with the PE sponsor, board members, FDD consultants, and other aspects of the diligence process like legal, so I know those are positive signs. In general, I plan to just take on as much responsibility as possible in order to be able to ask for some more compensation and a promotion later on. No equity at this point which I was aware of, but some kind incentive program or transaction related bonus would be ideal as well. I know this is a little all over the place, but just trying to get an idea if I am in a good spot that can lead to some high paying exits later, or if I'm in a weird position where it's kind of Corp Dev but more project management than anything.
Based on the most helpful WSO content, here are some key aspects and signs of a good Corporate Development (Corp Dev) and Financial Planning & Analysis (FP&A) experience, especially in a PortCo setting:
Involvement in Financial Modeling and Forecasting: While your current role seems to focus more on project management and less on the technical financial modeling, it's important to seek opportunities to get involved in detailed financial analyses. This includes DCFs, three-statement models, and other valuation techniques. These skills are highly valued and can significantly enhance your profile for future opportunities.
Exposure to Strategic Decision-Making: Being part of meetings with the PE sponsor, board members, and consultants is a positive sign. It suggests that you are in a position to understand and potentially influence the strategic direction of the company. Make sure to actively participate and contribute to these discussions to solidify your role as a strategic thinker.
Hands-On Experience with M&A Processes: Your involvement in the diligence and acquisition processes is crucial. To enhance your experience, try to get involved in the deeper aspects of these processes, such as negotiating terms, working closely with legal teams on contract details, and integrating acquired companies post-purchase.
Seek Opportunities for Skill Expansion: If your current role does not involve much financial modeling or forecasting, consider requesting projects or training in these areas. Express your interest in expanding your skill set to your supervisors or consider external courses and certifications.
Performance Recognition and Compensation: It’s good to aim for recognition through increased compensation or a promotion. Document your contributions meticulously and prepare a case for your performance review. Discuss the possibility of an incentive program or transaction-related bonuses, which are common in such roles.
Networking and Relationship Building: Continue to build and maintain strong relationships with all stakeholders you interact with. Networking can open doors to new opportunities and is often a critical factor in career advancement in the finance industry.
Assessing Exit Opportunities: Given your exposure to high-level stakeholders and strategic processes, you are likely in a good position for future high-paying roles. However, ensure that you are also developing hard skills like financial modeling, which are crucial for technical roles in finance.
In summary, while your current role has many positive aspects, enhancing your technical skills and ensuring active participation in strategic and financial decision-making will make your experience more robust and open up better exit opportunities.
Sources: CorpDev to PE prospects - creating a long-term map / success stories, DCF Modeling Course ~ Pre-training text.pdf, Anyone do both FP&A and Corp Strat or Dev?, Q&A: Returning to PE After a Year and a Half at a Series C Startup, Q&A: Corp Dev > Strategic Finance > VC
Bump
Interesting no equity or deal bonuses?
Most small Corp Dev tuckins or rollup strategies are very light DD asset deals with cash->accrual / light QoE and light markups on the DDs. Really just refreshing the existing templates on the SPA/APA and LOIs.
PE and Platform investing are different level.
Also multiple on Rev? What is the industry?
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