A longtime friend and client approach you and explain that he has the opportunity to purchase a company that has developed a very lucrative technology.

Unfortunately, the company has had some legal issues with clients and vendors in the past. Your friend assures you that, going forward, he can resolve the problems that have led to the legal issues, but he does not want to be held liable for the company’s past failings.

Your friend asks you to give your opinion on whether he should purchase the stock of the company or purchase only the assets. Which method of acquisition would you recommend and why?