Paulson Corporation wants to acquire the business of Fortinet, Inc., a corporation owned by two founder-shareholders. The Fortinet shareholders do…

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Paulson Corporation wants to acquire the business of Fortinet, Inc., a corporation owned by two founder-shareholders. The Fortinet shareholders do not want to pay U.S. tax (either individually or at the corporate level) on the acquisition.

  1. What options are available if Paulson Corporation wants to acquire the

    assets

    of Fortinet, but wants to use cash and is required to assume certain liabilities of Fortinet?
  2. What options are available if Paulson Corporation wants to acquire the stock of Fortinet, but wants to use at least some amount of cash in the acquisition?

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