This is a question that you'll need to tie into the objectives of the client and therefore is case specific. An example: If this is about a PE firm and the target is not profitable, then it's your job to expore ways to increase profitability during the case. If this is about acquiring capabilities for a corporate client and you conclude this is not the best target than they should look at different ones.

Hi there,

As mentioned by Henning and Ian, this is case-specific. In general, both the options you mentioned (look at different alternatives or additional analysis of XYZ to improve the financial metric) could make sense and are totally fine as next steps.

Best,

Francesco

I will recommend the client not to go ahead because of xxx..

However, if the clients still want to go, following needs to be considered.

1. XXX 2. XXXX 3. XXXX

The risk will be xxxx