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.

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.

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.

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.

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.

Are you ready for the deal? 

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Governance Technology Evolution: Milestones & Shifts

When I first started in the governance technology space twenty years ago, the world was a very different place. Most companies were still governed by the rhythms of paper, pen and marathon meetings. At the time, Sarbanes-Oxley loomed large, reshaping how public companies understood and enforced accountability. Technology in governance was viewed mostly as a way to make board processes more efficient but not fundamentally different.

Back then, the pitch to boards was simple: let technology help you do what you’re already doing, but with less friction and better consistency. The truth was, many directors didn’t believe board service was all that complicated. The role was narrowly defined: hire the CEO, ensure the company’s general wellbeing, and report to shareholders. Risk oversight was barely on the radar, and the idea of technology revolutionizing governance felt, at times, like a solution in search of a problem.

Then came the iPad - both a popular executive holiday gift, and an unexpected inflection point in the governance technology space. Suddenly, directors realized the device could replace the unwieldy board books that weighed down their bags and their schedules. Within months, every governance technology provider rushed to market with an iPad app. Usage soared, but the core proposition for governance software hadn’t yet changed: it was still focused on making board meetings more efficient.

New challenges shift the governance paradigm

Around 2015, another shift occurred when board members found themselves besieged by new and complex challenges: cybersecurity breaches, ESG demands, shareholder activism, and the ever-expanding universe of stakeholder expectations. The job of the board was becoming more about risk oversight. Directors no longer had a passive role, but an active responsibility for scanning the horizon and anticipating what might come next. I started hearing directors say, “I want to see what’s coming around the corner.” That mindset shift was profound, and the focus moved from looking backward to looking forward.

This shift drove the next wave of innovation in 

 We knew that boards needed more than digital board books summarizing old data; they needed better dashboards, tools for smarter decision-making, and real-time insights. At Diligent, it was the spark that sent us down the road to becoming a true GRC (governance, risk, and compliance) platform. We started building a line of sight that stretched from the frontlines of the business straight to the boardroom. The goal was to enable directors to do their jobs, not just track what management had already done.

Then the pandemic hit. In an instant, board meetings couldn’t happen unless they went digital and virtual. Concerns about security lurked, especially with everyone working outside traditional firewalls, but Diligent’s commitment to cloud-based encryption and secure access paid off. Necessity propelled long-overdue adoption, and the world of governance technology leapt forward more in a few months than it had in years.

The arrival of generative AI: Boards as architects of the future

Generative AI & the Future of Board Governance

 brought even more layers of complexity: increased market volatility, heightened geopolitical risks, workforce transformation, and the need to revisit what effective oversight really meant. And then, almost on cue, generative AI burst onto the scene. Directors are now seeing tools that could help them “see around the corner” by generating more nuanced scenarios, calculating risk probabilities and offering creative approaches to opportunity assessment. 

We’re at the beginning of understanding what GenAI will mean for governance. In some ways, it feels eerily familiar - a land grab for new tools and capabilities with uncertainty about risk, bias, privacy, and the limits of automation. My hope is that GenAI does not become a more efficient way to do the same things, but a tool that will transform governance itself. Imagine board members focused more on future scenarios than past performance, empowered to ask better questions, spot emerging threats and trends, and help their companies prepare for the unknown.

Of course, as with any new technology there are some 

 GenAI should be a thought partner, not a decision-maker, and we must guard against the temptation to abdicate judgment and let GenAI do the thinking for us. Bias, data privacy, and intellectual property challenges are real risks we must address, not just acknowledge. Mistakes were made with earlier tech rollouts (social media and recommendation engines among them), and we have the opportunity with GenAI to get it right before the window closes.

Looking back, I’m struck by how much the field has changed - and how much further it still has to go. The first twenty years of governance technology were about digitizing and streamlining current processes. The next twenty years could be about reinventing the job itself: helping boards shift from stewards of the past to architects of the future. Whatever comes next, I remain optimistic - and more than a little curious.

As boards face this new era shaped by AI, risk, and rising stakeholder expectations, preparedness is everything.

 from the Diligent Institute and Corporate Board Member to see how directors can navigate uncertainty, embrace innovation responsibly, and build the boardroom of the future.

Diligent

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