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Estenson Co. embarks on changes

The Estenson Co. is merging its income tax and accounting business with a new firm, and the insurance portion of Estenson will relocate to East Main Street.

David Gangestad and Mike Reker have jointly owned Estenson Co. and its building on West Main Street since 1982.

If the agreement is signed, Estenson Co. will sell its accounting and tax business to Meulebroeck, Taubert and Co., Pipestone, and Gangestad will buy Reker's remaining interest in Estenson Co., which consists of the insurance portion of the business.

Reker will stay on as an employee of the new firm, as will current Estenson employees Phyllis Vos and Krista Kroon.

"Essentially what we're doing is merging the payroll, income tax and accounting business with this firm from Pipestone," Gangestad said Monday. "The clients we've had will still be dealing with Mike in the same office."

Reker and Gangestad will still own the Estenson building and will lease it to Meulebroeck, Taubert and Co. whose name will appear on the office front.

Meanwhile, Gangestad will move the insurance portion of Estenson Co. to the former Sears Catalog store on East Main Street. He's negotiating with Eugene Cragoe on purchasing the one-story block building on the north side of the street.

Gangestad will take with him Estenson employees Tim Knoll and Lisa Diekmann.

The business will no longer do payroll, accounting and income taxes, but it will continue servicing Estenson clients in personal and commercial insurance, life and health insurance and fixed annuities.

The Estenson Co. has operated under its current arrangement and location since 1982 when it merged with Reker's CPA firm.

Prior to that, Estenson Co. operated out of the Edward D. Jones building since Gangestad and Tom Serie bought the business from Wally Estenson in 1975.

The opportunity with Meulebroeck, Taubert and Co. came at a good time for both Gangestad and Reker, who look forward to simplifying their professional careers.

Gangestad's wife, Randa, plans to retire from teaching at Luverne Elementary School in two years. "When that happens, I want to be able to travel in the winter, and right now, I can't get away during tax season," he said.

Reker said he's looking forward to just working on tax returns and dealing with his clients without dividing his attentions on administrative concerns.

"In today's regulatory climate of the tax and accounting agencies, it's just a hassle for a single firm to maintain all the administration that goes with that," Reker said.

"I think the future is going to be these multi-location firms."

The opportunity to merge with Estenson came at a good time for Meulebroeck, Taubert and Co., which was looking to expand.

The business already has offices in Russell and Tyler, in addition to Pipestone, and with client growth to the south, a fourth office in Luverne seemed logical, according to Matt Taubert.

"We have three current employees who will become partners in the firm next year, so this will also help to facilitate that growth in our business," Taubert said.
Initially, the first new face to join the Luverne location will be Dave Friedrichsen, a Rock Rapids, Iowa, native who's been with the Pipestone firm since 1989.

Taubert said the office will need to hire a full-time receptionist once the new arrangement is effective - likely around Nov. 1.

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