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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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GENE HAGEN TOM HORN - JO HN DIEFENDORF job for you at Ç ftôohrfaoekàs BANK DESI6N CONSULTANTS BOX 87 PH. 1-712-2621499 security national in sioux city 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 BANKS WANTED We're here to help you get what you want IOWA-DES MOINES NATIONAL BANK Bob Buenneke https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M rik rr Federal Deposit Insurance Corporation WE HAVE A FIL E OF OVER 400 “BUYERS” FOR ALL SIZES OF BANKS. “CONFIDENTIAL” “PROFESSIONAL” SERVICE For our “Listing Contract” write to: RAY E. REENTS CO. 1212 Oakmont Dr. Springfield, 111. 62704 (h Always the First to Serve You! 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! N O R T H W E S T E R N B A N K E R w iil send you F R E E w ith each order of 500 S itv e rlin e "P e rfo rm er” R e tractab le B a il Pens: A P o laro id C o lo rp a c k IV C am era w ith B u ilt-In T im er (Model C P #4). R e ta il V a lu e $ 3 9 .95Features: E le g a n tly tooled 24 Banded caps in M e ta llic Gold and Chrome colors 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 $5 million for —() I + - /Rk Gross Co BANK PLANNING Waterloo. Iowa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H a rtle y B lue Ink Medium P o int B rass C artrid ge B u tyrite B arrell w ith m idget m etal nose tip . B arrell co l ors: Red, B la c k , Royal B lue and Green. 4 lin e s of copy in S ilver ink at no e x tra charge 500 Pens 27$ each C e llo wrapped 2$ add itio nal F in e P o in t R e fills 2$ each. 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 LINCO LN N ebraska # LEXING TO N N ebraska # VE R M ILLIO N South Dakota Department of Banks and Bankers 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 Franchise rights for use of The Living Picture and The Farm Picture in direct mail advertising and public relations. These modern newsletters talk money and credit from a banker’s point of view. They help develop ‘ Full Bank Customers’ ! Samples for in spection. Bank Services Incorporated, P. O. Box F , Urbana, Illinois 61801. Phone (Area Code 217) 3 6 7 -6578. 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 https://fraser.stlouisfed.org subscriptions, changes of address (Form 3579), manuscripts, mail items to above address. Federal Reserve Bank of St. Louis