Beyond The IPO: Why Capital And Transaction Readiness Is A Business Imperative
By Nithya Das
Despite early optimism for a surge in IPOs in 2025, the pace of public listings remains slower than anticipated with the predicted wave of IPOs having yet to materialize, particularly in the United States. Instead, company boards and leaders are left to navigate a broader landscape of strategic transactions, including mergers and acquisitions, private equity investments, and debt and capital raises.
Market conditions, however, can shift rapidly, creating both uncertainty and opportunity. Developments, including the announcement of new tariffs and shifts in economic policy, have added heightened uncertainty to the IPO and capital market.
Digital commerce companies that were widely expected to go public this year, such as Klarna, Chime and StubHub, paused their IPO plans due to the ripple effects of the tariffs.
IPO timelines have always been unpredictable, but the recent rapidly shifting economic environment underscores the fragility of IPO timeliness. While the IPO market remains unpredictable, global dealmaking across M&A and private capital investment is showing strong momentum, with companies actively planning for strategic growth.
Against this backdrop, companies must prioritize growth to remain competitive while also being ready to take advantage of opportunities.
This means capital and transaction readiness can no longer be treated as a final step before a major event — it must be an ongoing, embedded process.
By maintaining strong governance, financial transparency, risk management and operational efficiency, companies can move swiftly and decisively when market conditions align, reducing the risk of delays or missed opportunities.
This ongoing state of readiness not only helps businesses capitalize on favorable conditions but also demonstrates resilience during periods of volatility, ultimately making them more attractive to investors and strategic partners.
Key pillars of capital and transaction readiness
Companies with well-defined governance structures are better equipped to handle due diligence, regulatory scrutiny and shareholder expectations, thereby reducing the risk of delays or setbacks in a transaction. In other words, governance and compliance are crucial components of transaction readiness. This is because strong governance frameworks and structured compliance programs provide stability and credibility, reassuring investors and regulators alike. Strategic investors and acquirers can quickly determine that the assets being evaluated do not come with undue risk.
Financial transparency is another critical component. After all, investors and potential buyers rely on financial accuracy to accurately assess a company’s risk and value. Well-documented financials, clear reporting structures and adherence to accounting best practices are essential for any transaction. Companies that proactively maintain organized and accessible financial records ultimately position themselves as more attractive investment opportunities.
Operational efficiency plays a key role in a company’s ability to scale and integrate with new partners or investors. A streamlined operational model enables businesses to adapt to growth, execute acquisitions seamlessly and demonstrate resilience in a competitive market. Companies with clear processes and scalable systems can navigate transitions more smoothly, minimizing disruption and maximizing value.
Finally, effective risk management is crucial for transaction readiness. Identifying and addressing potential risks before they become obstacles allows companies to move quickly through transaction processes while maintaining stakeholder confidence. A proactive approach to risk management — including robust reporting capabilities — ensures that businesses remain agile and prepared for opportunities as they arise.
Preparing for the future
This year was supposed to be a highlight year for businesses planning on going public, but resulting uncertainty has led to a pause, further highlighting the need for transaction readiness. Regardless of whether a company is planning an IPO, seeking investment or exploring M&A opportunities, transaction readiness must be a continuous effort.
The organizations that will thrive in the evolving market are those that integrate governance, financial discipline and strategic foresight into their day-to-day operations. By embedding these principles into their business strategy, companies can ensure they are prepared for any transaction, positioning themselves for long-term success in an increasingly complex landscape.
Nithya B. Das is the general manager, governance business unit, and chief legal officer at Diligent Corp., where she leads the company’s global legal team and oversees the Diligent Institute, a modern governance think tank. Her expertise spans enterprise SaaS, corporate development, business strategy, HR and operations, driving impactful results through rigorous execution.
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Illustration: Dom Guzman
