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My partnership was created by putting two competing business together with frightening little due diligence. It worked well while we were together, but my partner did try to turn things in his favor at the sale of the business. He had asked me to assume 50% of his debt when we combined our assets. It made sense as he had a lot more inventory and equipment. What I found out in the end was that one of the "loans" on his books was a personal loan he had made to his corporation for the down-payment. Of course I had also made a down-payment when I bought my business and that was never listed as a liability on the books of the new company.
I did research by calling the folks he bought his business from and discussed the matter with our attorney. I had all my figures straight when I presented my findings to him. The fact that he put up absolutely no arguments and just wrote me a large check conviced me that he knew exactly what he was doing.
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Lee
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