Corporate Development, Engineer, CFO discussed on M&A Science

M&A Science


Today i'm here with reema. Franklin chief growth officer of deal room president of of franklin consulting rima's actually had several corporate development roles in a variety different industry from cargo to republic services. Today we're gonna talk about corporate developments a career path and what comes after remote kickoff. Just a little more about your background and hear about your corporate veldman experience. I am an electrical engineer. That was my undergrad. I use that for us to make seven and a half years of my work life. Then someone had the bright idea to send me often get an mba. So i did that and immediately was like. Oh my gosh. Having have these experiences meeting these fascinating. People i gotta go use. This mutual set got into management consulting for a few years and then was brought in house by one of my clients. Since i was doing so much work for them and they kept renewing. And i've been doing. Ceo advisory a corporate development work since then that was about twelve years ago. God what type of industries with Waste management services which you brought up republic services concrete asphalt demands dredging and mail processing. I worked for a division and of the old how bowie bell and howell which at the time was owned by german private equity fund. I work with them in strategy and planning role. I've always intrigued by people like yourself. That had the engineering background and wind up in corporate development and find the be very unique culture creatures very untraditional than the hair went to the school. Got into best for banking. I'm curious about what. What is she going. Attraction to begin with. Most things in my view are presented with opportunity. And you have a choice to make whether you're going to go all in whole hog or you're going to be really china in very prescriptive about it. Once i was doing many studies. It was the first time actually met people that worked in financial services. I saw the differentiation. There's like a socioeconomic differentiation. Where i would watch some students in there. Beautiful battalion shoes. Big watches net. Sorta thing in here. I am suburban housewife. Of course i worked and everything. But i was like okay. How do i become one of that. What are they do. And that was a huge learning outside from various education that you got in in terms of financials and all the theory it etc. I learned about what they did. Learn about how they made their money and how they did it and how they thought about the world. I decided that that was going to be something. That i was gonna learn a lot about. And in that process of learning it very organically just fell in my lap. Because you start asking questions you start. Learning people are enthuse. Attracts you to that because it really comes from a place of. Hey i'm just naturally curious about this and all of a sudden. People are practically presented new opportunities to have those conversations. When i was in grad school i was just amazed you earn what for doing what i thought about doing. Investment banking or mattering consulting eventually chose consulting because i liked the critical problem solving skills being in the guts of an organization and solving issues. There is a lot more intricate more refined problem in my view and i really enjoyed that and enjoyed the people that i met along the whole path. That's interesting so let's breakdown corporate development. What is what are the skills you develop. What lines do create. And what kind of growth initiatives to you implement carbon development it's really defined by each organization. There are some organizations where corporate about strategy are split apart meaning reside in two functionalities sometimes are altogether housed in one role. And so you really have to understand how corporate developments fits into the organization and really what lovers are you utilizing i think in any organization corporate development needs to have finance as a busty. This is the one functional group that you need to have the backing off to. There needs to be if foundational elements of respect of understanding and also sharing the same perspectives. If you cfo. That's extremely conservative. You need to know that because when you're working on financial modeling and you're working on valuations you wanna make sure that you have taken into account Business leaders and their views into what you'll be presenting eventually investment visas to move forward. Cfo is like your best. That's the guy or gal that you hang out with on a regular basis to talk about deals to basically just socialize about the various opportunities that you're thinking of nice to the kinds of deals in corporate development everyone always gets attracted to the buy side which is lovely but there are points in the phases of our mutation. Where you end up having to sell you've got do carve out. You've got to do a global alliance because you don't have the avenue to make an acquisition but you wanna create the environment and ecosystems that eventually when is appropriate and right for both musicians. There can be a murderer that can take place. It really is a lot of organic and inorganic activities. That are focused on growth and really that should be the focus of development which is rouse. Wanna go back on the skills because you mentioned finance. Are there other skills that expand off a skill to communicate to communicate to different individuals about the various aspects of a deal. Now not everyone needs necessarily know about everything about a deal but perhaps your hr individual needs to know what's coming down the pipe pipeline. Maybe you need to understand what are the strategies. They're utilizing from a human capital perspective. That you need to incorporate as you're thinking about negotiations and structuring deal. I know you've had numerous conversations about incorporating those functional perspective early on in a deal because it really can facilitate synergies and actual is them in the timeframe that eighteen wants to so. We're mixing finance people skills. Creativity those true creative individual. 'cause you have to be able to see an opportunity where nobody else may have seen in opportunities for instance if you're in a dynamic market environment where you have the opportunity to invest in an opportunity that may not result in anything immediately but may in the near future you have to have the creativity in the skill sets to make those kinds of leagues and also the credibility so that your steering committee your board of directors and say you know what i see what you're saying i understand your perspective and you've earned the credibility to now make that recommendation and it will then be a part of that any other skills being able to stay up late at the skill set. You gotta have. There's a lot of information that you gotta process. It is never something that you can just off the cuff and this is true for. I think anything that you do professionally if you really want to do something really drives you and enthrall as you and makes you wake up every day to wanna do that. You better believe staying up. Late should come pretty. Naturally i would think you mentioned some of the responsibilities. Corporate development acquiring company look alliances the their bothered divestitures. They strategically have to look at mergers of their organization. Let's define organic versus inorganic activities and where corporate development fits in. Is it all organic or there. Any organic growth opportunities there balden. Oh absolutely our opportunities. If there is a joint venture where you have to create a new entity and you'll llc. Let's say that's going to be a vehicle of investment. That may not be an inorganic against you. So you may not be acquiring piano. That's currently operating in creating revenues. It may also be minority investment. Sometimes the venture capital within a corporate environment may reside with incorrigible of having that functionality. And thinking about hey the first horizon might be read it five years in terms of when i expect my return. The next horizon may be five to seven years and then beyond that is my third horizon and the way that you think about. Your portfolio investment can vary depending on the horizon that you're looking to a what about some of the inorganic roles. Are those all the ones that we covered. Yeah by sow maybe you sell then buy back. I mean it's all kinds of scenarios that happened in a corporate. It people make decisions and choices to take action on a variety of factors is not always financial. It's not always black.

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