Preparing your team, tech and tactics for deals on the horizon
This article originally appeared in our August 14 edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe here.
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. M&A announcements recently dropped to their lowest point since mid-2020, and deal volumes are projected to remain flat for the year.
That’s why Diligent is currently collecting insights from boards and executives about what’s working (and what’s not) when it comes to transaction readiness. If your organization has recently completed or is planning for a transaction, we encourage you to participate in our ongoing benchmarking study in collaboration with Wilson Sonsini, NetSuite, the CFO Leadership Council, and the CFO Alliance.
Despite recent turbulence, however, research from our Director Confidence Index conducted with Corporate Board Member shows 76% of public company directors still see growth as the year’s top priority, and nearly 40% specifically cite M&A as a key agenda item for their boards, with smaller companies most likely to lean in as deals return.
Deals aren’t off the table; they may just be harder to attract. And that makes them even more valuable.That means getting your governance house in order should be a top priority, so you won't miss out when opportunity knocks.
A recent blog published by Diligent, dives into transaction preparedness and emphasized a key point worth repeating:Investors, regulators and the leadership teams putting a deal together today demand governance that’s fast, transparent and ready for anything.
Here are a few things to keep in mind for achieving this goal:
Readiness is culture, not circumstance
“We’ll tackle it when it happens” is no longer a viable strategy for transaction preparation.
When reporting is rushed, or due diligence not given its due, errors happen. Outdated information finds its way into documents, and important details fall through the cracks, impeding decisions, impacting valuations and even stalling deals entirely.
This last-minute scramble goes away when companies integrate transaction-ready governance into everyday operations. Compliance processes and audit reporting are robust. Board composition is strong. And the business itself is positioned to strike — successfully — when opportunity arises.
Getting your house in order requires the right tools
Transaction readiness also demands the right technology and processes. For example, think about all of the activities a merger or acquisition entails. Effective execution requires clean entity records, organized due diligence documentation and accurate, transparent audit trails that track progress as it happens.
Kristy Grant-Hart, Head of Advisory Services at Diligent, spoke from recent experience navigating Spark Compliance’s acquisition: “The pace and complexity of today’s deals is incredible. There is so much data and information to obtain in such a short time. Having connected, secure systems, and being ready for due diligence was absolutely critical in getting through the process smoothly. Unified collaboration across systems, data, and people is the key to success.”
Now is the time to bring such capabilities on board. Integrated reporting, AI-driven workflows, secure document management — they are all essential to minimizing risk and building investor trust.
Fortune favors the prepared
Transaction readiness signals credibility and gives your company the edge when it counts.
PE and VC firms are understandably selective right now. They want to see clean financial reporting and clear governance structures, proactive risk management and agile, scalable systems. They want to invest in nimble, resilient companies who demonstrate progress against their objectives and deliver long-term value.
Disciplined transaction readiness gives them confidence.
What does this mean for your ongoing operations? For starters, benchmarking, due diligence reviews and scenario planning are more than rote compliance exercises. They’re strategies that sharpen your competitive edge.
Moreover, disciplined governance not only attracts more opportunities but also increases the likelihood of faster, smoother transactions and successful integration post-close.
As we have highlighted, while the IPO market remains cautious, it is far from closed. Meanwhile, the M&A pipeline is poised to accelerate as private equity firms seek exits and strategic buyers pursue growth.
The companies that embed transaction readiness into their culture today will be best positioned to act decisively and gain a competitive edge when the market shifts.
Want regular access to original research in the field of GRC? Bookmark our Diligent Institute hub page for the latest surveys, podcasts and reports.
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