Are you ready for the deal?
Are you ready for the deal?
The full Transaction Readiness Report will be available on October 9 at https://www.diligent.com/resources/category/diligent-institute.
Organizations are navigating an increasingly unpredictable transaction landscape as economic turbulence, shifting fiscal policy, and global uncertainty redefine what it means to be “deal-ready.” The latest research from Diligent Institute, with partners Wilson Sonsini, NetSuite, CFO Alliance, and the CFO Leadership Council, provides timely insights into how companies are preparing—or struggling—to execute mergers, acquisitions, IPOs, and strategic partnerships in this complex environment.
Key findings from the survey
Almost half (49%) of surveyed organizations are still prioritizing M&A or strategic partnerships as central pillars of their growth strategies—despite economic headwinds. Yet, only a small subset (5%) currently utilize AI-powered tools within their transaction processes, although many leaders view advanced analytics as a future imperative. Alarmingly, just 4% report that their governance, risk, compliance (GRC), and finance systems are fully integrated, exposing substantial gaps in how organizations support transaction execution.
Market volatility is pushing companies to delay deals (49%), heighten due diligence (40%), and overhaul financial modeling (46%). According to our respondents, the top challenges impeding their ability to be transaction-ready include limited resources (56%), economic/geopolitical uncertainty (35%), and a shortage of experienced personnel (28%). Senior executives arecalling for better defined roles, more transaction-savvy staff, improved data quality, and enhanced board communication.
How companies are responding
Organizations say they currently favor organic growth (35%) over more aggressive deal activity, but more public companies (46%) say they are still pursuing M&A compared to their private company counterparts (35%), and North American firms lean more toward acquisitions than peers located elsewhere. In today’s risk-averse climate, advanced transaction planning with consultants (51%) and rigorous due diligence (50%) top readiness strategies, followed by internal checklists and secure data rooms.
Technological readiness remains low: Only 20% use secure data rooms, 16% deploy ERP software, and North American companies are nearly twice as likely to employ secure data rooms as their global counterparts. AI’s role is currently mostly auxiliary according to our respondents, limited to speeding up document review and risk flagging. However, leaders expect more widespread adoption soon—helping accelerate diligence and freeing teams for higher-value tasks.
Gaps and opportunities
Resource constraints overwhelmingly lead the list of transaction concerns. Private company respondents cite a lack of experienced personnel and awareness of opportunities, while public companies struggle more with regulatory compliance and integration challenges. Across regions and sectors, participants urge more robust governance structures, upgraded technology, and a proactive approach to data management.
Board involvement remains mixed; while 42% of boards actively shape transaction strategy, nearly one-third seek stronger communication and oversight. The CEO leads deal efforts in most cases (77%), followed by CFOs and dedicated transaction teams. Effective best practices center on disciplined due diligence, standardized documentation, cross-functional teams, and rigorous governance frameworks.
Actionable takeaways for leaders
Transaction readiness isn’t just about having resources or pursuing deals—it demands an integrated blend of people, processes, and technology. Organizations capable of robust planning, rapid adaptation, and transparent board engagement will seize opportunities over competitors. Investing in technology, continuous learning, and clear governance structures will be pivotal as companies control their own destiny in uncertain times.
Are you equipping your team for transaction success, or are hidden gaps slowing your ability to act when opportunity knocks? The full report, available October 9th, offers a deeper dive into benchmarks and strategies.
Related resources
Amid market volatility ‘transaction readiness’ remains your greatest growth strategy
Growth-minded companies must prioritize transaction-ready governance for successful IPOs, M&A deals and attracting investment in 2025.
The transaction-ready governance checklist
A governance checklist for growth-stage organizations eyeing up an M&A, IPO or next investment round.
Preparing your team, tech and tactics for deals on the horizon
Transaction activity (acquisitions, funding rounds, and IPOs) may be lower on many corporate priority lists right now, as market slowdowns, policy uncertainty, and trade whiplash continue.
