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 ****************************** Selling monitoring accounts from one company to another owned by same owner September 27, 2025 ******************** Selling monitoring accounts from one company to another owned by same owner ******************** Ken What is the process for selling monitoring contracts from one business to another? We are closing our security monitoring business and will need our other company doing automation business, to take over our existing contracts. We only have 22 contracts. I own both businesses. What is the best way to handle this? Thank you, JC ********************* Response ********************* It's a little, just slightly, too complicated to guide you in a quick response to your inquiry. You should engage K&K to properly review the proposed transaction and prepare the appropriate papers to effectuate the "sale". What can be so complicated on such a trivial matter? How about this: You notify a monitoring customer that the surviving business has taken over the monitoring account. Then there is a loss suffered by the customer; a very big loss. Your surviving company owns the account and is responsible for the account, which translates into being liable to the account. That exposure may be enough to force the surviving company to close its doors. You have not advised my if the selling company [that has only 22 monitoring accounts and is closing its doors] has a contract with the customers, which contract or anything about the customers. You have not advised if the company closing its doors and striping itself of its only apparent assets, the monitoring contracts, has secured creditors, tax liens, trade debts, or other problems. If we conclude that the surviving company can safely acquire the accounts, and has E&O coverage from the moment it does own the accounts, then a Bill of Sale will be the appropriate transfer of ownership document. *********************** 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
