What would you actually work on?
A software company needs an analytics feature. It could build the feature, buy another company, work with a partner or decide the opportunity is not worth pursuing. The strategy question comes before the acquisition target list.
| Work | Typical question | An intern-sized output to ask about |
|---|---|---|
| Corporate strategy | Should we enter this market or build this capability? | Market analysis and a comparison of alternatives |
| Corporate development | Would this acquisition or partnership meet our objective? | Target screen, valuation input or diligence analysis |
| Integration | How do we make the agreed transaction work? | A dependency, cost or progress tracker |
The boundary varies by employer. GitLab's acquisition process, for example, involves corporate development working with product leadership through diligence and integration; its stated rationale includes accelerating the product roadmap. That is one company's model, not a standard internship assignment.
Example: a cheaper acquisition price changes the choice
Assume all amounts below are fictional millions of dollars. Benefits are already expressed as the present value of future incremental operating cash flows. Development, purchase and integration costs are paid now; financing effects and any additional residual value are excluded.
| Item | Build | Buy |
|---|---|---|
| Present value of incremental operating benefits | 9 | 14 |
| Development or purchase cost today | 6 | 10 |
| Additional integration cost today | 0 | 2 |
| Net value | 9 − 6 = 3 | 14 − 10 − 2 = 2 |
Building produces net value of $3 million, compared with $2 million for buying. On these assumptions, building wins by $1 million. The useful next question is what would change that result.
The acquisition price that makes the alternatives equal is $14 million of benefits − $2 million of integration costs − $3 million of value available from building = $9 million. Paying $10 million needs better benefits or lower costs to justify buying. If acquisition benefits rise to $16 million with costs unchanged, buying produces $4 million and wins by $1 million.
Test the forecast that makes buying attractive
If the acquisition forecast depends on selling the product to existing customers, ask how many can use it, whether any already buy it and when the sales team could start. Adding two customer lists is not a revenue forecast.
Choose one unresolved dependency and calculate its effect. A delayed product integration might postpone customer payments and add engineering costs. Show those changes in the model rather than inserting an unexplained ‘risk discount.’ Keep both alternatives on the same cash-flow basis; do not subtract debt from one while treating the other as an operating investment.
Prepare one decision you can explain
Build a short memo with the business problem, alternatives, calculation and one assumption that could reverse your recommendation. A public-information target screen or clearly fictional case is enough for practice; label it as such, not as transaction execution.
For a strategy interview, be ready to explain why the business should solve this problem at all. For corporate development, be ready to explain target fit, the price that works and an integration risk. In either case, a list of companies without selection criteria is unfinished work.
Ask the manager which part you would own
‘Would my main assignment be market research, target screening, financial analysis, diligence coordination or integration tracking? Who would review it, and how would the team use the result?’
Choose the answer closest to the skill you want to build. Proximity to a transaction is not the same as doing analysis. Check related titles such as strategic finance or strategy and operations, but read their responsibilities rather than assuming they are interchangeable.