Dear Evgeny, in my opinion it depends on the objectives of the deal. It is clear that financial due diligence is the main input to the transaction. However, if the transaction makes sense to the buyer due to the synergies found in HR, or if the skills that the target has and perhaps even difficult to find in the market are important to the buyer, it might make sense to continue with the transaction even if the financial DD would indicate otherwise, as long as this motivator is clear to all buyer decision makers. For example, perhaps in a consolidating industry this is the last opportunity that exists to acquire the competence the buyer needs, so in this case it is cost vs. benefit vs. opportunity and not just financial.
