Deloitte Research Finds Companies Have Major Differences in M&A Outlook

"Strategic Acquisitions Amid Business Uncertainty: Charting a Course for Your Company's M&A," is a new report by Deloitte Research that is based on a study carried out by the Economist Intelligence Unit (EIU). It informs that while appraising M&A options, some companies might fail to notice four potentially difficult issues.

Jerry Leamon, global managing partner, Merger & Acquisition

Services, Deloitte Touche Tohmatsu said, "The deal environment has changed in recent months, but companies still need to make decisions about acquisitions and divestitures based on market facts and business logic."

This new report by Deloitte spots out those four areas where problems may occur, including the company's approach to M&A, input into the company's M&A decisions and the organization's deal execution abilities. The report draws some conclusions for companies assessing their M&A options.

Those respondents who confessed that their companies rarely meet their M&A goals ("low achievers") were more or less as eager about doing more deals as were respondents who declared that they perform well at M&A ("high achievers").

The survey report reveals that low achievers are likely to underestimate the significance of having the right deal strategy. Roughly 32% of the low achievers defined acquisition strategy as a vital pre-acquisition task.

Low achievers complained that their CEOs control M&A decisions at the expense of those with a sensible business perception, particularly business unit heads from marketing and sales, finance and accounting, operations and productions and IT. Dwight Allen, a director with Deloitte Research and author of the report said, "Whether it makes sense to proceed now with an acquisition depends on factors that are specific to each company's plans, markets and finances."

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