Corporate finance is a department in a company that handles all of the financial matters of a business or company, and some say the role of corporate finance is pivotal to the success of a company. The primary purpose of corporate finance is to evaluate assets to determine if the company should invest in them. Once a company decides to acquire an asset, then the role of corporate finance to track and manage the asset, even deciding when it is time to sell the asset, in order to maximize the return on investment of the asset.
The bottom line in the role of corporate finance is to manage the overall financial standing of the company. Primarily, this involves properly managing the assets of the business. In order to achieve this, however, the role of the corporate finance managing director is to find and hire the people that can help the company to carry out this process.
The role of corporate finance is to raise the money that the company needs to operate. Then, the department is responsible for controlling these funds, and growing them through investing and other ventures in order to cover the liabilities, or expenses, that the company has.
The role the corporate finance department may play in raising funds or money can vary from company to company. It may also vary according to the need that the company has for raising the money in the first place. One role the corporate finance may play is to identify investors that may be willing to invest money in the company or to fund a specific project of the company.
Some executives believe the role of the corporate finance department is at to the heart of a company. Without money to start and operate a business, then the business could not exist. In addition, if the corporate finance department does not properly manage the assets and finances and fundraising efforts of the company, then it can mean the demise of the company.
It also requires that the corporate finance department interact on a constant basis with the other departments in the company. This interaction helps the department to determine how much money the company may need to reach its business goals, how current money is being allocated and how money may need to be reallocated so that in the end, the company reaches its financial goals and overall sales goals.