2015 was a record year for mergers & acquisitions. And we'll likely see plenty of activity in 2016, as well. Competition for good companies puts a lot of power in the hands of the target, but a more disciplined approach to acquisitions offers a stronger likelihood that the acquisition will deliver on its promised value, according to the latest CFO Insights from Deloitte.

"Advantaged acquirers" will approach acquisitions strategically rather than reactively, according to the report, and have a detailed action plan in place before negotiations even begin.

Here are three critical elements of an effective action plan to become an advantaged acquirer:

1. Assess your company's strengths and weaknesses with a critical eye. Identify what sets your company apart from your competition – and make sure it really is a differentiator. For distributors, the answer is often some variation of providing the right product faster and/or at a better price. That's not a differentiator. For guidelines on how to assess what sets you apart, check out The Four Ps of Differentiation.

2. Know where you want to grow. "Advantaged acquirers who have done such a careful assessment know what their priorities are for M&A," according to the Deloitte report. Don't just jump at shiny objects that promise great returns if they don't fit within your growth strategy. For many distributors, that means refocusing on their core business with acquisitions.

3. Be disciplined in your execution. The transactional elements are just one piece of the acquisition puzzle. Consideration should be given to the integration process before the deal is done, as well. Cultural conflicts can dampen the returns on your investment quickly. (Read more in M&A: Easing the Transition.)

Get more tips on becoming an advantaged acquirer and how to overcome the challenges of this merger wave in the latest CFO Insights from Deloitte.