Organisations struggle with transaction readiness amid M&A focus

A recent global survey has found that the majority of organisations face significant challenges in transaction readiness, hampering their ability to capitalise on strategic deals such as mergers and acquisitions.

The report, conducted by the Diligent Institute in collaboration with Wilson Sonsini, Oracle NetSuite, CFO Alliance, and the CFO Leadership Council, gathered responses from over 200 executives and governance professionals worldwide. It revealed that 97% of organisations experience obstacles that hinder their preparedness for major transactions, despite ongoing economic and geopolitical uncertainty.

According to the survey, nearly half of all participating organisations (49%) continue to prioritise mergers, acquisitions, or strategic partnerships as core components of their growth strategies. However, the study highlights that most struggle to execute these deals effectively due to structural and resource-related shortcomings.

Transaction readiness gaps

Transaction readiness refers to an organisation's ability to efficiently execute complex activities, including mergers, acquisitions, and capital deals. The survey found that only a small minority - just 4% of respondents - believe that their governance, risk, and compliance (GRC) and financial systems are fully integrated and ready to handle major transactions. This leaves many organisations exposed to additional risks and reduces their capability to act swiftly on strategic opportunities.

Key obstacles cited by survey participants include limited resources (56%), economic uncertainty (35%), lack of experienced personnel (28%), and insufficient board alignment regarding significant transactions (31%). These factors were identified as major impediments to achieving transaction readiness.

"Organisations that fail to address their glaring transaction readiness gaps risk falling behind in the deal-making landscape," said Dottie Schindlinger, Executive Director of the Diligent Institute. "Our research points to a clear need for prioritisation at the board level, defining roles and processes, and enhancing data quality. The transaction readiness gap is real and yet entirely addressable."

The findings indicated that these challenges have led nearly half of organisations surveyed (49%) to delay deals, while 40% have intensified their due diligence processes, and 46% have altered financial modelling practices in response to prevailing economic volatility. This more conservative approach mirrors recent global trends where market instability has prompted reduced deal activity and heightened scrutiny of business investments.

Legal and operational implications

Commenting on the current environment, Rich Mullen, Partner in Wilson Sonsini's M&A Practise, emphasised the need for both operational efficiency and strategic legal planning in navigating uncertain markets.

"The volatile economic landscape and rapid market shifts requires not only operational efficiency but also strategic legal planning and risk management," said Rich Mullen. "Now is the critical moment for leaders to understand how top-performing organisations are preparing for major deals, enabling them to transition from episodic preparation to an 'always on' business discipline."

The report suggests that organisations which adopt a more continuous approach to transaction readiness-rather than preparing only in response to immediate opportunities-may stand a better chance of responding efficiently and securely as circumstances develop.

Technology adoption remains low

Despite growing interest in technology-driven solutions, the survey also found that adoption of artificial intelligence in transaction processes remains low. Only 5% of respondents reported current use of AI-powered evaluation or data collection tools in their transactions. Nonetheless, the report notes a rising level of interest, with organisations beginning to explore how artificial intelligence might support enhanced analysis, compliance, and due diligence in future deal-making activities.

The survey was conducted from July to September 2025, comprising 233 responses from executives across a diverse spectrum of company types and industries: 32% represented public companies, 64% private companies, and 4% pre-IPO entities. Respondents came from regions including North America (56%), Europe (15%), and Asia-Pacific (12%).

The findings highlight that while many organisations recognise the importance of being transaction ready, substantial work remains to address integration, resource allocation, and technological enablement. This comes as economic headwinds and market volatility continue to shape the deal-making environment for organisations globally.