KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Comment on how are fire suppression companies sold September 26, 2025 ******************** Comment on how are fire suppression companies sold from article on September 10, 2025 ******************** Ken, Responding to “no name please” who asked how fire suppression companies are sold. He asked how they would be valued. The valuation of any company begins with valuing the future net cash flows of the business. In most industries the net cash flow comes from the Earnings Before Taxes, Depreciation, and Amortization (EBITDA). In the alarm industry we frequently use the net cash flows from contracted services (monitoring, service agreements, connected services, etc.), because the acquiring company already has the business infrastructure and can fold the seller into its own operations and eliminate the overhead. Fire Suppression may be different, because a significant portion of the revenues come from installation and non-contracted service. Some suppression companies do contract with the customer for service, inspection, etc and it may be possible to value the future cash flows from those items alone. We do 25 – 30 valuations of business a year for divorces, partner disputes, trusts, and other purposes. I could definitely give “Mr. Please” an idea of the value of his company. Mitch Reitman 817 698 9999 XT 101 Reitman Consulting Group Fort Worth, TX 76133 *********************** another comment *********************** Ken Hood systems require inspection and testing, typically on a 6 month interval; that "should" be on a contract basis and adding to the RMR. Jeff Schneller Acme Fire Protection Inc 718-939-3939 ********************* Response ********************* It's not just hood systems. Sprinkler systems need inspection and service; so do fire extinguishers; so does, I am guessing, all the fire protection systems [there are a bunch identified in the Fire Protection All in One. If you think about it any business that has continuing repair service, inspection or testing needs, would be excellent candidate for RMR. You get that with a service, inspection or testing Plan. Of course this applies to camera systems and access control systems. RMR is for much more than alarm monitoring, which unfortunately surprises too many alarm dealers. While you need to be more careful committing to the RMR for anything other than monitoring because your cost isn't fixed, but that's no reason not to figure it out. As far as valuation, let's put the accounts on the market and see the interest and offers. No matter what the system or service, I am confident that you will have more to sell if your service is backed by a Kirschenbaum Contracts TM. *********************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
