This blog was written by Trintech CFO Omar Choucair and originally appeared on Forbes. It is republished with permission.

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As we enter Q4 2024, the economic landscape remains as challenging as ever for finance executives to predict the M&A market in the coming months, extending to 2025. M&A can offer opportunities for rapid expansion into new markets, geographies or product lines, which might be slower or more difficult to achieve organically, especially during times of economic volatility.

However, the deep freeze on M&A, particularly in the technology capital markets space, appears to be thawing, as we saw that the total value of M&A deals in Q1 2024 was the highest since the second quarter of 2022.

According to KPMG’s recent M&A Deal Market Survey, 6 in 10 (57%) dealmakers expect their next deal to come later in 2024, while 4 in 10 (41%) say their next deal won’t happen until 2025. This type of split underscores the uncertainty many have about the next few months, and how critical it will be for the Office of Finance to be prepared when the moment comes for their organization. For the first time in recent years, we may see new players entering the technology M&A space, and as finance leaders look toward the next few months, there are several key factors to consider to ensure they are best positioned to confidently act when the moment is right for their organization.

Pay attention to market trends.

Following the Federal Reserve’s decision to cut rates by a half-percentage point in September, there will be further motivation for deals, and finance leaders need to pay close attention to the moves in the market so they can accurately forecast when their business should be ready to act. KPMG’s study found that private equity is far more bullish than corporate about its dealmaking expectations for the remainder of 2024 and throughout 2025, with 84% saying their dealmaking will be greater in 2025 than in 2024.

Understanding these trends will be critical to assessing the market. Who has access to capital? Which companies will deploy cash or stock to fund their strategic initiatives? No matter the market conditions, finance leaders will keep tabs on trends to see how they can leverage the market conditions to their benefit.

KPMG’s study found that 2 in 3 dealmakers indicated geopolitical issues have affected their M&A plans, with 38% saying geopolitics has increased or brought forward their M&A plans. Also, a third (35%) of the executives say geopolitics had not affected their dealmaking at all.

Ensure your financial systems can handle modern data demands.

Financial leaders continue to upgrade financial data systems and controls to make well-informed strategic decisions about M&A opportunities. Accelerated digital transformation has proven to be a key strategic asset to both buyers and sellers as they transform their financial close and reporting systems and processes.

Accurate financial reporting provides accurate, clear and transparent views of the company’s financial health and forecasts, which are essential for potential buyers or investors during the due diligence process. Financial executives are strategically managing balance sheets and reviewing the details of the company’s profitability.

Compiling and forecasting financial performance and other necessary due diligence documents for any M&A agreement is a significant process requiring substantial company resources. Having confidence in your financial data is critical in structuring deals, including financing arrangements, by providing clear insights into historical and forecasted cash flow, debt levels and other financial metrics.

Create a scalable AI strategy.

GenAI has disrupted nearly substantially every company and its finance group, and its impact on M&A will be no different. Nearly 80% of dealmakers say that GenAI has affected their dealmaking primarily in terms of making new acquisitions of GenAI tech and products and using GenAI to support the M&A deal process. While companies can be overwhelmed by AI’s potential, the leading-edge organizations in the world continue to invest billions of dollars in both technological and people-related integrations (the people who know how to use AI are just as, if not more, important as the technology itself).

With dealmakers focused on leveraging AI, it is imperative that finance leaders work with key stakeholders within their organizations (CTOs, CIOs and the rest of the C-suite) to align on a comprehensive AI strategy that avoids the hype and focuses on the scalable applications within their organizations. This is especially important for tech buyers, where due diligence will be critical to assess the AI strategies and capabilities of their potential targets. Additionally, finance executives are the key players in developing and reporting ROI metrics for the substantial investment in AI tools, LLM and other databases.

Take a comprehensive approach.

Ultimately, both corporate strategics and private equity firms are keenly focused on M&A as we close out 2024, with many looking toward 2025 to pursue at least one transformational deal. For finance leaders, understanding the M&A market is not just about identifying potential deals; it involves a comprehensive approach to strategic growth, value creation and risk management.

By staying informed, prepared and at the forefront of innovation, finance leaders can effectively navigate the complexities of M&A, positioning their companies for sustained success and a competitive advantage as M&A activity ramps up in the coming months.

Omar Choucair, CFO, Trintech, has spent 20+ years leading financial and administrative organizations for public and private companies.