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Oldest Financial Journal Serving The Central and Western States

September 22,1969

Des Moines, Iowa

No. 1184

66How to Buy or Sell a Business
When it comes to buying or s e ll­
ing a small business, the local
banker, more often than not, is
asked for advice, as well as finan­
cial assistan ce.
With this in mind, suggestions
featured in the latest edition of
The Small B usin ess Reporter, pub­
lished by the Bank of America,
can prove valuable. Comment is
concerned with single proprietor­
ships, rather than partnerships or
changes in corporate ownership:
“ When it comes to buying a
small business, a would-be entreprenuer may rush in where angels
fear to tread, and the seller must
also be aware of many pitfalls.
“ Although the decision to buy
or to sell a business is a crucial
one, a surprising number of people
rush into transactions without
adequate preparation. They arrive
at their decision guided more by
emotion than by lo g ic.”
Bank of America emphasizes
that the prospective buyer must
take time to get adequate infor­
mation about the business. If the
owner refuses to furnish necessary
information, the buyer should take
this as a warning sign.
The buyer is also advised to
look behind the surface reason for
the sa le . A seller may give ill

health as the reason when the
real reason is a declining busi­
ness or an obsolete product.
“ Reliable accountants, lawyers
and escrow holders are a virtual
must for the buyer to reach an
intelligent decision. The buying
process is very complicated even
for experts; those without experi­
ence should be doubly careful.

“ The liabilities that will be
assumed by the new owner should
be put in writing. The contract
should include a statem ent that
all claims not shown on the bal­
ance sheet as of the date of
acquisition will be assumed by
the seller. Carefully following the
proper legal procedure will help
protect the buyer.”
The bank cites classified news­
paper ads as the most common
method of finding a buyer. Other
channels are real estate brokers;

L IN C O L N
r -i-

trade publications, associations
and other trade contacts; and word
of mouth.
The report urges sellers to
“ find out at the start how inter­
ested buyers actually are. Do they
have the capital and background
suitable for this type and size
business? Time can be wasted if
they are not real prospects.
“ Selling to unqualified people
on terms means if they fail in the
business,.the entire price may not
be paid off.”
The bank also notes that, for
tax purposes, certain times of the
year may be better for selling than
others.
The report cites arriving at a
fair selling price as the biggest
problem in selling a business.
Disagreements often arise as to
how much the intangibles of the
business, or “ good w ill,” is
worth.
The Reporter lists a suggested
formula for arriving at the price
of a business, but notes that there
isn’t any all-inclusive answer.
“ Many special and highly per­
sonal considerations come into
play for both buyer and seller.
Money may not be the most im­
portant of them.
“ The seller may be anxious to
sell for perfectly legitimate rea(Continued on Page 4)

...Professionals in
Commercial Loans

F IR S T N A T IO N A L B A N K & T R U S T C O M P A N Y O F L IN C O L N
12th &. N S treet • LINCOLN, NEBRASKA • Member: F.D.I.C.


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Federal Reserve Bank of St. Louis

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IOWA NEWS

Christy
Armstrong

Leo
Kane

Boh
Scott

‘WE HAVE WHAT YOV WANT
iii a correspondent bank’

american trust
a n d s a v in g s b a n k
9TH AND MAIN. DUBUQUE. IOWA
MEMBER FOIC • F RS

CAMANCHE: A group of Hawkeye
Bancorporation and F irst National
Bank of Clinton officers has pur­
chased controlling interest in the
Camanche State Bank from Bruce
Townsend, chairman of the board of
the First National Bank of Clinton
and founder of the Camanche bank.
Philip W. H all, vice president and
installment loan department manager
at the Burlington Bank and Trust
Company, has been named executive
vice president and manag ing officer
at the Camanche bank, effective
September 29«

Seeks Exemption from
Fed TrutfHn-Lending.. .

DES MOINES: Richard E . Ramsay,
vice president and trust officer at
Maine is the first state to seek the National Bank of Des Moines, has
from the Federal Reserve Board an been promoted to senior vice pres­
exemption from the Federal truth-in­ ident and trust officer. Gene E .
Loverink, assistan t vice president,
lending law and Regulation Z.
The Fed, which is considering has been named assistan t vice pres­
comments on the application until ident and cashier.
October 15, may exempt a state if
its truth-in-lend ing requirements and DUBUQUE: Funeral services were
enforcement procedures are “ substan­ held here la st week for Leo J .
tially sim ilar’’ to those of the Fed­ Schlueter, 37. He was a vice pres­
ident for American Trust and Sav­
eral law.
ings Bank until a year ago when he
purchased an interest in the Badger
Administration Supports
State Bank, C assville, Wise. He is
Anti-Credit Card Legislation...
survived by his wife, Judy, and six
children, who reside at 1316 Alta
Strong support for legislation pend­ V ista in Dubuque.
ing in Congress to bar the unsolicited
mailing of credit cards by banks —as
well as other card issuers —has been LAWLER: Merrill Shaw, vice pres­
voiced by the Nixon Administration. ident at the First National Bank, New

S P E N C E R ,IO W A 5 1 3 0 1

Hampton, has purchased controlling
interest in the Lawler State Bank
here and its office in Waucoma from
Eugene Timlin, bank president, and
William Ilstrup and Kenneth Eaton,
both vice presidents. Mr. Shaw has
been elected the new president, with
Loren Billmeyer continuing as bank
manager. No other personnel changes
are anticipated.
SPENCER: Dwight Willard has been
elected president of Farmers Trust &
Savings Bank. Ben Abben will con­
tinue as chairman of the board (in­
active).

NEBRASKA NEWS
BLU E HILL: E . J . McBride and a s­
so ciates have purchased control of
the Commercial Bank of Blue H ill.
William Kort, executive vice pres­
ident, and Jam es McBride, cashier,
Eire leaving the bank, but Mrs. Eva
McBride, president, will continue at
the bank for several months.
OMAHA: A lone bandit recently robbed
the Mid-City Bank here of an approxi­
mate $10,600- This is the largest
bank robbery in the Omaha area since
1965.
NORTH P LA TTE: E. Dean Niedan
has resigned as vice president of
the McDonald State Bank here, effec­
tive October 1. He will continue as a
director at the bank. Mr. Niedan has
been with the bank for five years.

MINNESOTA NEWS

>4“

DULUTH: Frank J . McCarthy of Min­
netonka, formerly director of bank
relations with the Central States
Bank Card Association, has been
elected vice president of the Northern
City National Bank here. He will

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Bob Buenneke
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Federal Reserve Bank of St. Louis

M rik rr Federal Deposit Insurance Corporation

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For our “Listing Contract”
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First National Bank of Omaha

M TH & FARNAM - OMAHA, NEBRASKA
Member Federal Deposit Insurance Corporation

have
primary responsibilities in
business development and marketing
and will supervise bank relations
with eastern accounts. Mr. McCarthy
also was formerly employed at the
First National Bank in Sleepy Eye,
president of the Glen Lake State
Bank and director of bank relations
with the Master Charge Bank Credit
Card Association.
GEM LAKE: An application has been
filed with the State Department of
Commerce for a proposed state bank,
the Community Sta te Bank of White
Bear Lake, to be located at the
intersection of County Road E at
Highway No. 61 here. Incorporators
named in the application are: Herbert
W. Tousley, J r . , John E . Steger, Rich­
ard T. Bennett, J r ., Henry Hoffman,
Raymond J . Fanum and Lloyd Urban,
all of White Bear Lake; Robert M.
Linsmayer, Arthur W. Kootz, Richard
McMillan and Daniel W. O’ Brien, all
of St. Paul; Thomas G. Briggs of
Mahtomedi.
Proposed capital is
$600,000* No date has been se t for
hearing on the application.

student loans. National City Bank of
Minneapolis and Northwestern Nation­
al Bank each announced they would
make available an additional $2 mil­
lion for government guaranteed 7%
loans. Twin City Federal Savings &
Loan Association pledged an addi­
tional $1 million.
MINNEAPOLIS: John P . Hake has
been named to the new post of direc­
tor of management information s y s­
tems for Dain, Kalman & Quail, In­
corporated. He was formerly manager
of information systems for Pako Cor­
poration, Minneapolis-headquartered
manufacturer of photo processing
equipment.
MINNEAPOLIS: The F irst National
Bank of Minneapolis has filed an ap­
plication with the FDIC to establish
an overseas office in Nassau, Baha­
mas.
ST. JO SEPH : Claude R. Crever, a
retired president of the F irst State
Bank, has died at the age of 68* Mr.
Crever had been associated with the
F irst State Bank all his life and
served as president from 1953 until
his retirement in 1967*

joined the bank earlier this year,
after serving as senior vice president
and director of the First Federal
Savings and Loan Association.
EAST DUBUQUE: Gary K. Running of
Stoddard, Wise., has purchased con­
trolling interest in the State Bank of
E ast Dubuque. He has been named
executive vice president at the bank.
No other personnel changes have
been announced.

BANK PREMIUM!
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of 500 S itv e rlin e "P e rfo rm er”
R e tractab le B a il Pens:
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L E CENTER: Theodore T . Traxler and
Otto ]6. Deutschman have been e le c ­
ted the new president and vice pres­
ident, respective ly, of the F irst State
ILLINO IS NEWS
Bank of Le Center. Mr. Traxler, who
has been serving as the bank’s ex ­ CHICAGO: Carl D. Glickman, chair­
ecutive vice president sin ce 1961, man of American Steel and Pump
succeeds the late A. C. Tambornino. Corporation, has been appointed
He has 54 years of banking experi­ chairman at the University National
ence and joined the Le Center bank Bank, succeeding Gerald A. G itles,
in 1917* Mr. Deutschman has been who will become vice chairman of
with the bank since 1950 and will the board and chairman of the execu­
continue as cashier, in addition to tive and discount committees. Myron
his new position as viee president. D. Malitz has been elected to the
board.
MINNEAPOLIS: Westen Anderson and
Richard A. Nordquist, J r ., have been CHICAGO: Vincent P . Cavanaugh has
named directors of the F irst Bloom­ been promoted to vice president and
trust officer of the Bank for Savings
ington Lake National Bank.
and Loan Associations. He was for­
MINNEAPOLIS: Three Minneapolis fi­ merly trust officer. Mr. Cavanaugh
nancial institutions have pledged an
additional total of $5 million for
—() I
+ -

/Rk Gross Co

BANK PLANNING
Waterloo. Iowa


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Federal Reserve Bank of St. Louis

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NORTHW ESTERN BANKER
306 - 15th Street
Oes M oines, Iow a 50309

CHILES ¿COMPANY
M EM B ER. M IDW EST STOCK EXCHANGE

412 Farm Credit Building, Omaha. Nebraska 68102
Phone 346-6677 (Area Code 402) Teletype 402 348-1040
Other Offices Located in

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VE R M ILLIO N
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Department of Banks
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In Southern Minnesota,

Floyd S te w a rt

Northwestern
National Bank
of Minneapolis

is your Northwestern
Correspondent Banker.

May we help you today?
C a ll h i m a t 6 1 2 4 3 0 4 3 9 4
COLORADO NEWS
DENVER: Colorado CNB Bankshares
President Melvin J . Roberts has an­
nounced that negotiations for an
exchange of stock with principal
shareholders of the Bank of Glenwood
are currently in progress. If s u c c e ss­
ful, the Glenwood bank will become
a member of the Denver-based holding
company. Current transactions have
been approved by the boards of di­
rectors of both CNB Bankshares and
the Glenwood bank. All transactions
are su bject to the approval of the
Federal Reserve Board and other
governmental agencies.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

start construction soon on a facility
in Watts. The new office will cost
approximately $750,000.

Buy or Sell A Business. . .
(Continued from Page 1)
sons of his own; the buyer may
vitally need a location, product line
or patent. Or he may rank ‘being his
own b oss’ higher than the actual
income of the business.

WANT ADS
Rates 25 cents per word per insertion. Minimum: 12 words.
NORTHWESTERN BANKER ------- 306 15th St.. Des Moines, Iowa

MONTANA NEWS
VICTOR: An estimated $10,000 in
cash and a private coin collection
were taken recently by burglars from
the Farmers State Bank of Victor.
State Senator William Groff of Victor
is president of the bank.

NATIONAL NEWS
BIG LAKE, T E X .: Deposit liabilities
of the Big Lake State Bank here, in
the amount of $4.4 million, have been
assumed by the Reagan State Bank, a
newly organized institution, with the
help of the FDIC. The former bank
was closed in late August.
LOS ANGELES: Bank of America will

CENTRAL

NATI ONAL

“ But to avoid disillusionment or
regret later on, both buyer and seller
should make sure they thoroughly
understand and appreciate all the
factors involved. Also, that they
allow themselves enough time to do
the necessary research and obtain
the best advice available before
closing the d eal.’’
Copies of the report may be ob­
tained through any Bank of America
branch.

ASSISTANT CASHIER
Suburban Chicago bank desires young
note teller. Salary $10,000 plus lib­
eral profit sharing plan. Write Box
IBG, NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
POSITION AVAILABLE
Young man between 30 and 40 years
of age with some experience in
general banking operations and an
agricultural background for position
as vice president of a $6 million bank
in northern Illinois. College graduate
preferred. Write F ile INB, in care of
NORTHWESTERN BANKER, 306 15th S t., Des Moines, Iowa 50309.
POSITION WANTED
18 years experience—commercial, real
estate, installment and agricultural
loans. Seeks position as vice pres­
ident in midwest bank. College degree

BANK

AND

TRUST

Member Federal Deposit Insurance Corporation

COMPANY

and the Graduate School of Banking
at the University of Wisconsin. F ile
DBB, NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
FOR SALE
Burroughs Auto Reader, Style A4001,
for sensitronics. Price $500. National
Bank of North Chicago, North Chicago,
Illinois 60064.
INCREASE 1969 PROFITS
Cy Kirk and Max Roy, vice presidents
of L aSalle National Bank, Chicago,
are prepared to a ssist you and your
bank in planning increased profits
for 1969. Whether it is an analysis of
your bond portfolio or a cost study
of your general banking services,
L aSalle National Bank has the facil­
ities to serve your every need. Call
Cy or Max today at (Area Code 312)
782—5200 for immediate action.
FOR S ALE
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No. 1184 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des


Moines,
Iowa 50309. Subscriptions 50tf per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all mail
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