Deloitte survey finds key differences in M&A outlook, decision-making and timing among strategic acquirers.

"Strategic Acquisitions Amid Business Uncertainty: Charting a Course for Your Company's M&A," a new report by Deloitte Research based on a survey conducted by the Economist Intelligence Unit (EIU), warns that some companies may be overlooking four potentially troublesome issues when evaluating their M&A options in building value for their investors.

"The deal environment has obviously changed in recent months," said Jerry Leamon, Global Managing Partner, Merger & Acquisition Services, Deloitte Touche Tohmatsu. "Earlier in 2007 it was easy to be enthusiastic about M&A, but regardless of the conditions, companies still need to make their decisions based on facts and logic."

The report identifies four areas where problems may arise, including the company's approach to M&A, the effect of a deal on achieving overall strategic goals, input into the company's M&A decisions, and the organization's deal execution capabilities. Based on significant differences in how successful and less successful acquirers approach these areas, the report draws conclusions for companies evaluating their M&A options:

-- Don't drift with the M&A current. Respondents who admitted their companies seldom meet their M&A goals ("low achievers") were almost as enthusiastic about doing more deals as were respondents who said they do well at M&A ("high achievers"). Low achievers likewise exhibited what now appears as questionable optimism about the effect of factors such as the business cycle, exchange rates, and interest rates. Low achievers may be more subdued today, but taking cues from the prevailing mood isn't the way to make M&A plans.

-- Consider the long-term strategic implications of M&A. The survey results show that low achievers tend to undervalue the importance of having the right deal strategy. Only 32 percent of low achievers cited defining the acquisition strategy as a crucial pre-acquisition task. But even a well-defined strategy can be vulnerable if it relies on one view of that the future may hold - for example, the high level of turnover among national leaders in major capitals calls into question what lies ahead in areas of government policy that affect deal economics.

-- Give full consideration to different points of view. Low achievers reported that their CEOs and boards dominate M&A decisions at the expense of those with a practical business perspective, notably business unit heads and managers from finance and accounting, marketing and sales, operations and production, and IT. They also signaled concern about insufficient attention to activists, government, unions, and media. High achievers were much more comfortable with their organizations' M&A decision-making.

-- Be sure that M&A follow-through capabilities are strong. Low achievers ranked getting things done rapidly as the most crucial deal management task, and also emphasized naming the right leaders. High achievers gave more weight to defining the integration plan and establishing a measurable definition of deal success - suggesting they think it is more important to set sail with a good map and compass.

The report is based on a survey conducted earlier this year by the EIU of 276 M&A strategic acquirers and advisors based primarily in Europe, Asia-Pacific and North America.

"Whether it makes sense to proceed now with an acquisition depends on factors that are specific to each company's plans, markets, and finances," said Dwight Allen, a director with Deloitte Research and author of the report. "The important thing is to make the decision carefully and objectively, with due attention to all the relevant viewpoints and considerations - that makes it more likely strategic acquisitions will be truly strategic."

To download the full report, please visit www.deloitte.com/us/M&Asurvey.