The following is a guest article by Armanino partner Dean Quiambao, and the views expressed are solely those of the author.

Over the past few years, CFOs have been operating in a capital-constrained environment. With interest rates rising and deal activity slowing, many leadership teams shifted their focus from expansion to survival.

But as we move into spring, we are hearing a distinctly different tone in our conversations with finance executives.

We are seeing signals from private equity firms that deal pipelines are building up. Strategic acquirers are restarting shelved conversations with potential deal partners. Refinancing discussions that could not get off the ground a year ago are beginning to take shape. Even anticipated shifts in the interest rate environment are materially changing deal economics.

This does not mean we are entering a period of unbridled optimism. But it does suggest that momentum is returning.

For CFOs, the more important question is not whether liquidity will return.

It is whether their organizations will be structurally prepared when it does.

The Return of Strategic Flexibility

When capital is scarce, most companies narrow their focus. They protect cash, defer investments, and extend their runway. This discipline is necessary.

As funding channels improve—even modestly—flexibility returns. Companies once again have options. They can pursue acquisitions that previously seemed too expensive; they can refinance debt on more favorable terms; they can consider raising capital to accelerate growth rather than merely sustain operations.

Options are powerful. But options without discipline can be dangerous.

Liquidity does not automatically create enterprise value. It only amplifies the foundation that already exists.

If New Capital Arrived Tomorrow

This is the question every CFO should be asking now: If new capital arrived tomorrow, where would it go?

Can leadership agree on the two or three strategic priorities that truly drive value? Can those priorities be supported by defensible analysis? Is the organization ready to execute immediately, or will consensus only begin to form after the funding is in place?

Too often, companies raise capital first and refine strategy later. Capital gets allocated to the most visible projects rather than the most strategic ones. Headcount expands without a clear productivity model. Technology investments are approved without an integration roadmap and measurable returns.

Raising capital at a high valuation can feel like validation. But that valuation becomes a performance benchmark. Once external capital comes in, expectations tighten. Growth must be proven quarter after quarter.

Liquidity without a clear deployment plan does not relieve pressure. It only increases it.

Aligning Leadership Before Capital Arrives

The most disciplined organizations do not wait for a term sheet to force alignment. They align in advance.

This alignment begins with a clear consensus among the CEO, CFO, CRO, and the board on the shape of the next phase of growth. It requires agreement on the most important initiatives over the next 24 to 36 months and a shared understanding of how success will be measured.

It also requires credible modeling. Can your finance team demonstrate the expected impact of an acquisition, a new geographic market, or a major operational investment? Can you articulate not just the strategic rationale but also the financial outcomes?

In today's environment, due diligence is more rigorous than ever. Data is analyzed from multiple angles, and assumptions are quickly challenged. If systems are fragmented or forecasts are not grounded in historical performance, these gaps will surface.

In a more liquid market, alignment and preparation are not optional. They are differentiators.

Prioritizing High-ROI Decisions

One of the biggest risks when the capital cycle returns is reactive spending.

After a period of restraint, it is tempting to fund every deferred initiative. However, not every investment creates an equal level of return. The CFO's role is to ensure that capital allocation remains anchored to measurable outcomes rather than following the crowd.

This means evaluating not just potential revenue growth but also margin impact, integration complexity, and long-term scalability. It means distinguishing between investments that strengthen competitive advantage and those that merely maintain the status quo.

In a competitive deal environment, some organizations will overpay or pursue growth at any cost. The most effective CFOs maintain discipline. They prioritize opportunities where the organization has both strategic fit and the operational capability to execute successfully.

Capital should accelerate a proven model, not compensate for an unproven one.

Turning Liquidity into Enterprise Value

There is always tension between short-term performance and long-term value creation. Once external capital lands on the balance sheet, quarterly expectations become more explicit. Growth targets are visible. Accountability increases.

The temptation is to optimize for the next reporting period.

However, sustainable enterprise value is built differently. It comes from effectively integrating acquisitions, strengthening data infrastructure, investing in scalable systems, and bringing in the right leaders at the right time. It comes from ensuring that people, processes, and technology evolve together.

Liquidity is a tool. It is not a strategy.

If M&A, private equity, and refinancing activity gain new momentum in 2026, the organizations that benefit most will not just be those that secure funding. They will be those that have already clarified priorities, strengthened modeling, and aligned leadership.

Capital may return.

The real opportunity lies in deciding: is your company ready to put it to good use?