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 ****************************** Steps you should take to prepare your alarm company for sale December 9, 2024 **************************** Steps you should take to prepare your alarm company for sale ***************************** This article, with updated edits, was originally run December 5, 2023. Not that much has changed. There are many articles on the topic of how best to insure the highest price for your alarm accounts. All K&K articles are archived on the K&K website at https://www.kirschenbaumesq.com/page/alarm-articles There is a search feature on the website so you can find articles of interest and on topic. Getting your alarm company [or accounts if not the entire company] for sale is something you should be planning from the beginning of your operation and keep a close eye on it thereafter until you're ready to sell. You can’t begin to think about it too soon. In order to be prepared and be in the position of getting the most for your alarm accounts, adopt best practices now; you won't be sorry. Here are a few suggestions for best practices: * have your alarm monitoring accounts on lines you can move. That means your own dedicated lines. You aren’t going to own the lines because the lines will be owned by the central station. However, if you use the K&K Rider to Central Station as an addendum to the central station’s Dealer Agreement you will have the contractual commitment from the central station to move the lines or the data so that a new central station can take over the monitoring. Companies using alarm.com can move the accounts with a flip of the switch, though the new central station will need the customer data to receive the accounts. Be sure your central station is willing to provide you with all your customer records both electronically and paper format. The best central stations cooperate when their dealer [in good standing] requests assistance moving accounts. * have all your subscribers sign Standard Form Agreements and make sure the execution process is correct. Be sure your contracts are continuously updated. K&K makes many updates during the year, some of which are required by change in law in your state or on a federal level. Updating will ensure that your contracts are compliant and enforceable, a representation you will be making when you sell the contracts. * have all employees sign a Standard Form Employment Agreement. Restrictions against soliciting customers and other employees and restricting use of confidential records is vital to your business and something else that a potential buyer of your accounts or business will be looking for. * be sure you’ve made the best deal with your central station, not just price, but terms. Use the Rider for Central Station Dealer Agreement to focus on the most important issues in the cs dealer agreement * carry sufficient E&O insurance coverage * use quality equipment * do quality work * build your RMR, especially the monitoring RMR, but the repair service and inspection RMR too * keep proper records * don’t spend more than you make and more than you can afford; avoid debt * pay your taxes * don’t over extend your operation; good customer service is essential * Become a Concierge Client of K&K and have a close working relationship with us. We are here for you from start to finish. * K&K will represent your legal needs in a sale or purchase of alarm accounts or operation * KK will "broker" your deal by finding a buyer; no locked-in term contract is required, pay a reduced commission of one-month RMR, no exclusive broker relationship is required, and you can cancel at any time. We only broker companies when we are also your counsel. ********************* K&K Holiday Party 2024 – Napco will be providing grab bag gifts to dealers attending ************************** The K&K Holiday Party will be on December 12, 2024 in Old Westbury, NY from 6:30 to 9:30 PM. If you are coming you should have RSVP'ed to Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Amy Laveglia at 516 747 6700 x 313 or ALaveglia@Kirschenbaumesq.com or on the sperate invite. Special thanks to Napco who is promising to have give away grab bag gifts. It's a surprise and you won't want to miss out. Thanks to Dick and Donna Soloway and the Napco crew for their support and generosity. *********************************** STANDARD FORMS 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
