What is the role of a business development officer?
- Merger and Acquistion Process
Posted by: Mansour Baker
The Business Development Officer is responsible for providing strategic and operational guidance and will ensure that the growth objectives set for the company by the Board and the CEO are achieved.
|
Key Accountabilities
1. New Business Opportunity Identification and Conversion
- Reviews, validates & finalizes the annual business development plan for presentation to the CEO, the Executive Committee and the Board
- Coordinates with the CEO, the Executive Committee, and the Board to get necessary approvals and communicates decisions to the rest of the company and subsidiaries
- Supervises the scheduling of annual business development activities and milestones
- Reviews all business opportunities analyzed and selected by the Business Development Team and recommends the most attractive ones to the CEO and the Board after further assessment of potential return, strategic fit, synergies, etc.
- Validates the preliminary and detailed due diligences to be conducted
- Consults the Merger & Acquistion Team for review and validation of the financial due diligence and recommendations for acquisition targets
- Coordinates with the CEO, the Executive Committee and the Board to get necessary approvals before signing off the Letter of Intent (LOI), the Memorandum of Understanding (MOU), Share Price Agreements (SPA) and EPC contracts
2. Opportunity Identification for Subsidiaries
- Reviews and validates project proposals from subsidiaries and the evaluation/analysis prepared by its team, selects the opportunities to be pursued after further assessment of potential return, strategic fit, synergies, etc.
- Coordinates with the CEO, the Executive Committee, and the Board to get necessary approvals after reviewing the feasibility studies and the techno-economic analysis
- Communicates decisions to the rest of the company and subsidiaries
- Supervises project commissioning & handover
- Assists in the formation of joint ventures / partnerships with potential partners by recommending post-acquisition integration activities
3. New Project Development
- Oversees the process of engaging in joint ventures / partnerships with suitable partners, reviews and validates direction and progress at every step: feasibility study, FEED, EPC, until project commissioning and handover
- Coordinates with the CEO, the Executive Committee and the Board to get necessary approvals
4. Acquisition of Target Companies
- Reviews, challenges & validates due diligence results from external consultants regarding targets in consultation with the Merger & Acquistion Team
- Makes final recommendations to the Executive Committee regarding targets and gains necessary approvals
- Leads the negotiation and acquisition of target companies in coordination with the Merger & Acquistion Team and in consultation with the CEO and the Board for final approval to proceed
- Supports acquisition process and initial post-acquisition integration activities
Organizational Relationships
- Receives direction on matters of company policy and strategic objectives from CEO & the Board
- Keeps the CEO and members of the relevant committee informed as to the functional activities
- Consults with the Subsidiaries’ General Management as required
Independence of Operations and Decision-making Authority
- Works independently guided by functional and company strategic objectives
- Conducts independently all Business Development activities, provides priorities and expertise in Business Development to achieve company’s objectives
- Sets business directions and working methods within his/her Team in accordance with established company policies
- Judges current working methods and is free to initiate new approaches in which company’s objectives and practices are continuously improved
- Advises the CEO and the relevant committee on major strategic issues or opportunities
Qualifications
- Undergraduate Degree in Business / Finance, and MBA from a globally recognized Business School or University, CFA charter holder
- Minimum 20 years’ international experience with a successful track record in Private Equity / Mergers & Acquisitions
- Excellent analytical skills
- Experience in creating joint ventures / partnerships and good understanding of financing arrangements
- Strong leadership and team building skills
- Skilled negotiator
- Skilled at extracting the best value from consultants
- Strong drive for results
Mergers and Acquisitions Process
The mergers and acquisitions process generally goes through four main steps (initial valuation, detailed valuation, documentation, and completion of the transaction), followed by the integration with the target as clarified in the (“Mergers and Acquisition Process”) below, that goes together with the investment memorandum.
The Investment Memorandum is an essential document between the Executive Management on one side and the Board of Directors, the Executive Committee, or the Investment Committee on the other side that evolves throughout the entire process of the transaction.
In smaller companies, the Executive Management has the authority to discuss merger and acquisition opportunities, while keeping the significant decisions to be made by the Board. As for large companies with recurring transactions, the Board of Directors remains the final decision-making authority. The Board can also form Investment or Steering Committees to oversee the transaction process, as indicated below. The minimum transaction amount can be defined in the company's delegation of authority.
Decision-making Process of Mergers and Acquisitions Transactions
In smaller companies, the Board of Directors acts as the Investment Committee for mergers and acquisitions, while the Executive Management (CEO, CFO, and Head of Business Development) manages the daily activities of the process.
In larger companies or in which mergers and acquisitions transactions frequently occur, the responsibility of approving transactions exceeds the minimum falls between the Board of Directors and its Sub-committees (the Executive Committee, the Investment Committee, and the Steering Committee.)
Steering Committee
Roles and Responsibilities:
- Managing the process of the merger and acquisition directly
Composition:
- Head of the relevant business department
- Head of Strategies Department/Business Development/Mergers and Acquisitions
- CFO / CEO
Investment Committee
Roles and Responsibilities:
- Approving the valuation expenses
- Discussing with the Steering Committee and submit recommendations to the Board of Directors
Composition:
- Specific Board members with experience in the relevant sector, mergers and acquisitions
- Independent individuals specialized in mergers and acquisitions CEO
Board of Directors or Executive Committee
Roles and Responsibilities:
- Approving of the transaction
Composition:
- Participate with the Investment Committee to ensure obtaining prior approval of the Board of Directors and facilitate the process
|
Mergers and Acquisitions Process
|
