When doing Financial, legal, HR Due Diligence, and if for some reason DD passes in some areas but some other areas it doesn’t pass, do you have a threshold to the point where you say okay this crosses the risk tolerance level or do you ask the acquiree to fix the items found etc.
I think it really depends on what passes and what doesn’t. And more importantly, if there are other suitable targets. So this threshold depends on a few factors
a. Are there other suitable targets.
b. What are the areas that don’t pass and are they material
c. Can the acquiring company accept it