see below for The Alarm Exchange

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Question
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Hello Ken,
    You have schooled us so well in the need to protect ourselves and build equity. Thank you for that!
    Since we use your contracts, I know I am protected.  
    My questions pertains to building equity. As an integrator, we offer a wide variety of services beyond the basic "monitoring or monitoring plus services contract". The revenue stream brought in from a simple contract is typically many, many times in excess of the base contract. System & code upgrades, tenant improvements, emergency service, add-ons, that is where the bulk of the revenue will come from. Typcially this additional revenue is not in an RMR type agreement.
    How then do we value this additional revenue? Does this additional revenue add any residual value to the company? If I am doing 100K per month in gross revenue with only 10% of it in RMR, is the company still only worth a +/- 35X multiple based on RMR?  Would it not be better for the long term picture to roll as much revenue as I can into an RMR type contract in order to build my long term equity?
Thanks again,
anon
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Answer
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    You are on the right track when observing that the typical model for the alarm business is RMR valuation.  The multiple certainly varies depending on the subscriber base and many other factors, but the constant is the RMR that your company has on its books and hopefully backed up by properly written contracts.  To get an inexpensive, quick,  but accurate evaluation go to WhatsMyAlarmCompanyWorth.com.  
    The RMR valuation method will not of course fit every situation.  However, many companies who think they deserve to be evaluated differently than strictly a multiple of the RMR may not realize that the few characteristics of their company that may make it unique will be accounted for by adjusting the multiple used to value the RMR.
    Having said that, there are also circumstances where there are other reasons to use a different evaulation approach than multiple times RMR.  Your company may be uniquely positioned so that significant revenue is derived through non RMR avenues.  A company specializing in fire alarm installations that makes nice profits on the installations, assuming that book of business can be sold with the business, would be entitled to consideration on valuation.  EBITA calculation could be used and the bottom line is what a buyer could expect to generate and profit from the acquisition.  If you have 1.8 million in sales and you can figure out your profit, if there is one, then there would be a value assigned.  
    Alarm companies, now Life Safety Integrators, and sometimes home entertainment companies, may not be limited to the lease, monitoring and service RMR model, but that is still the traditional way to value an alarm company.  So when I get inquiries explaining that there are other aspects to the business that should be valued, that's fine, but those evaluations are different than the RMR evaluation.
    Finally, to answer your last question, yes.  In the alarm industry the RMR model is still by far the business structure and the most familiar way to value the equity and sell the business assets.
    Be sure to engage competent counsel, [we have a Merger and Acquisition Department in my office, call me, or Jennfier Kirschenbaum,Esq at 516 747 6700 x 302 or Dennis Stern.Esq at x  323.

   
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com.  Most comments and questions get circulated.
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Speaking engagements:
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Want to schedule me, Jennifer or Dennis Stern for a speaking engagement? Alarm associations can book my presentation by calling Eileen in my office at 516 747 6700 x 312.

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 The Alarm Exchange
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    This area is reserved for alarm company announcements, solicitations, offers, etc.  Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies.  Equipment to sell; looking for employees; subcontractors; mergers;
    There is no charge to post a listing here.  The listing is subject to review and approval and will be posted for approximately 10 days unless renewed.  Include your contact information, phone, email and web site.  Posting by category will depend on response to this forum.  Send your post to Ken@KirschenbaumEsq.com.  To see the most current postings go to https://www.kirschenbaumesq.com/article/the-alarm-exchange
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Help Wanted:
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Key West FL Alarm Company seeking experienced alarm technician.  Send resume with references and salary requirements to scotts@barnesalarmsystems.com.  No phone calls please.
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NYC alarm company looking for experienced alarm techs.and operators  Call Dana 212 206 0900 or email to unitednyjobs@aol.com
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NYC central station looking for experienced general manager.  Contact Ken Kirschenbaum at 516 747 6700 ext 301.  All inquiries will be keep confidential.
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 Long Island Central Station Alarm Company looking for experienced alarm technicians and central station operators. Excellent salary and benefits. E-Mail  hr@lowittalarms.com or call 516-433-6960 ext. 215.
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Oakland, CA company looking for experienced electronic technician – alarms, CCTV, access control, intercoms, etc.  Send resume and references to HR@reedbrothers.com or call Nancy at 800-400-5625 x158
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Long Island, NY based fire and security technology manufacturer is looking for:
1. experienced installation technicians who are interested in exploring a technical support role.
2. a Fire Product Marketing Manager to join their team in the company HQ in Amityville, NY
3. a Software Quality Assurance Tester
Send a current resume and salary requirements in confidence to rbaker@napcosecurity.com
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Indianapolis, IN - Hoosier Security call 317-644-0570 or send resume to: armando@hoosiersecurity.com Actively seeking installation contractors and sales personnel experienced in alarm and digital CCTV.
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Eastpointe Michigan alarm company has an opening for an experienced alarm tech/installer, great salary, benefits, truck, medical. Call Hank Luks 586-772-6100 or email to www.controllor@aol.com
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San Antonio Texas based company is looking for experienced residential, commercial and fire alarm salesmen as well as experienced alarm installers.  Submit resume via e-mail to Gmunford@saalarms.com  Glenn Munford, President. Phone 210 342-3100  www.sanantoniosecurityalarms.com
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Washington DC area Home Automation company seeking experienced alarm technicians.  Send resume with references and salary requirements to jobs@american-automation.com
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Western Suffolk alarm company looking for exp'd office help- exp in Microsoft office, downloading of alarm panel, inventory, collections, sales and general office help. Send resume to Jeanne@checkmatesecurity.com  
631 669-3303 www.Checkmate Security
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Northern New Jersey Fire Protection Company is looking for an experienced Fire Alarm Technician, with at least 3 years’ experience.  Send resume to laura@cityfire.com
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NJ Alarm Company (Bergen County), seeking a Central Station Operator for the 5pm – 12:00pm shift.  Email resume and salary requirements to service@merchantsalarm.com .  No phone calls please.
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California and Texas alarm company seeking Central Station Manager, Customer Service Manager, Operations Manager, Sprinkler Operations Manager, Service Manager, Project Manager, Service Technicians, Lenel Certified Technicians, Installers, Fire Testers, Reg 4 Fire Testers, Service Dispatchers, Central Station Dispatchers, and Sales Representatives in locations throughout California and Texas. email resume to bwatkins@ssdsystems.com
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Union, NJ alarm company looking for Service Technician, Installation Technician, and
Administrative Assistant.  Send resume to humanresources@supremealarm.com
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Clifton, N.J. based alarm company looking for an aggressive sales person. commercial and residential fire alarms, burglar alarms, CCTV systems, Door Access Control Systems, Intercoms, etc. We are looking for a motivated self started, a professional with proven results and references. If you have the experience, product knowledge and drive call 1-800-486-5019 and ask for Tom Sr. or email tomsr@tralarm.com  http://tralarm.com/
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Digital Monitoring Products (DMP) is looking for an experienced Regional Sales Manager for the North East Region covering Metro NY, E. PA, Long Island & Northern NJ are looking for a Sales executive with five or more years of sales and territory management experience or dealer direct selling in the region. To learn more about this opportunity, please contact Matt Schweiger at 417-693-3988 or email at mschweiger@dmp.com.
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Central FL based company looking for 2 experienced electronics technicians in Ft Myers and Daytona FL areas – Commercial Fire, Security, CCTV  etc.  Send resume and salary requirements to Allcomsolutionsinc@gmail.com
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Tulsa OK company is looking for an exp'd Service Technician for Burg and Commercial Fire Alarms, Access Control, and CCTV systems. Submit resume with references and salary requirements via e-mail to tcarey@advancealarms.com, no phone inquiries.
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Merger and Acquisitions
NY - looking to purchase fire alarm subscriber accounts in New York metropolitan area.  call Bob WIlliams at Briscoe Protective Systems Inc at 888 274 7263 ext 211  or email  bobw@briscoeprotective.com  All calls strictly confidential
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Southeast Arkansas.  Security Integration co very lucrative agricultural vertical market, but having difficulty attracting and retaining installers to keep up with our workload.  Primarily commercial/industrial integration but with approx. 240 monitored alarm accounts.  Largely residential, upscale accounts with approx. 20% commercial accounts.  Will consider either selling alarm accounts to focus on surveillance/access control or will consider selling all and work as regional sales manager for purchaser.  Market has loads of potential.  For confidentiality reasons, please contact me at my "other" email address hogshogshogs@att.net.
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Central Stations
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Nationwide Digital Monitoring - monitoring all of America  UL Listed; NYC FD approved
800 221 0826   www.NationwideDigital.com   Contact  Alan Ankeles   aankeles@NationwideDigital.com
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U.S.A. Central Station Alarm Corp  - monitoring throughout the United States  Bart Didden 877-872-1266
bdidden@usacentralstation.com    www.usacentralstation.com
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United Certified Central Station Inc - monitoring the New York City metropolitan area.  NYC Fire Dept approved and UL Listed.  Dana Goffer  212 206 0900 x 301  http://www.weprotect.com/Monitoring%20station.html
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Counterforce Central Alarm Services Corp   UL Listed NYC FD approved  contact Phil Blair 718 575 3333 
Phil@counterforcecentral.com    http://counterforcecentral.com/services/index.htm
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Metrodial Central Station - FDNY Approved and UL Listed. Contact Andy Lowitt at 866-900-METRO or andy@metrodial.com     www.metrodial.com
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COPS Monitoring: Nationwide Burglary, Fire, PERS, Video, & Critical Environmental monitoring from 5 central stations  copsmonitoring.com  http://copsmonitoring.com/lp/kk.html or call Betty at 800-367-2677 x 1256
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All American Monitoring – throughout USA. UL, Five Diamond, licensed   LisaF@AllAmericanMonitoring.com  or call 800 318 9486 x 212   www.AllAmericanMonitoring.com
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RESPONSE CENTER USA – Monitoring burglar and fire alarms. PERS (Medical Alarms) Specialists UL Listed.
contact JD Benfer 866-489-4105 jdbenfer@rc-usa.com 
  www.rc-usa.com
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United Central Control, Inc. -  UL Listed, 5 Diamond Certified, serving the entire USA - contact Kathryn Schultz - 866-907-4712 or kschultz@teamucc.com   http://www.teamucc.com/
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AvantGuard Monitoring Centers : UL 2050 Listed, 5 Diamond, Fully Redundant Central Stations  Specialize in PERS monitoring.  Contact Troy Iverson 877-206-9141  www.agmonitoring.com
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Electronix Systems Central Station Alarms Inc., UL Listed, FDNY Approved
and Five Diamond Rated. Contact Jacqueline Jones
jackiej@electronixsystems.com (631) 271-4000 www.electronixsystems.com
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SentryNet  monitoring nationwide, Canada and Mexico - UL and 2050 listed; FM Certified.   Contact Kurt Erdman    kerdman@sentrynet.com    800-932-3304  www.sentrynet.com
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Grand Central Station  – monitoring of burglary, fire and video verification services throughout the United States. UL Listed  Benny M. Martinez 800-230-1654x136     bmartinez@gcsmonitoring.com    www.gcsmonitoring.com
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Security Response Center –  alarm  monitoring across Canada – ULC Listed
Beverley Champagne   888-346-6302   bchampagne@src.net     http://src.net/
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Central Security Communications, Inc. monitoring throughout USA since 1963; UL listed; Denver Fire License; redundancy; family owned/operated 1-888-8ALARM8  Natalie@centralsecurity.com  www.centralsecurity.com
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Rapid Response Monitoring - UL Listed, FM Certified, FDNY Approved, IQ Certified, SIA Certified -wholesale  monitoring services, audio, video, GPS, PERS, IP and residential and commercial protection,  completely mobile  Connectivity Dealer & Customer Access Services.  800-558-7767, sales@rrms.com,    www.rrms.com
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Security Partners – UL listed, CSAA 5-Diamond central station covering the entire US.  Advanced
Services Division  helps dealers become more aware of emerging security technologies.   Call
Andy Stadler at 717.481.6379 or astadler@securitypartners.com   www.securitypartners.com
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Business Brokers / Consultants
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Ron Davis   Davis Mergers and Acquisitions Group Inc rdavis@graybeardsrus.com   Office 847 955 2345
Cell: 847 910 7716  www.graybeardsrus.com 
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Mitch Reitman  S.I.C. Consulting, Inc. Tax and Financial services 817-698-9999  MReitman@sicc.us  www.sicc.us
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Rory Russell  Acquisition & Funding Services  www.afssmartfunding.com  (800) 354-3863  Cell  518-366-5111
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Barry Epstein - Vertex Capital -  representing Buyers and Sellers in Life Safety Industry.   bepstein4@sbcglobal.net  cell:972-740-2740
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Insurance brokers / insurance companies for alarm industry
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Alice Cornett Giacalone, Senior Vice President - selling alarm E&O throughout the United States
Central Insurance Agency, (800) 917-2542  aliceg@ciainsures.com  www.ciainsures.com
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Ralph A.Costa - specializes in alarm insurance in New Jersey and other states   973 835 8444
ralph@burglaralarminsurance.com     http://www.burglaralarminsurance.com/category.aspx?id=MISC1
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Security America Risk Retention Group    Alarm industry owned and sponsored E&O insurance – Call SARRG at 1-866-315-3838, or info@securityamericarrg.com.   www.securityamericarrg.com
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Premier Alarm Insurance,  Kristin Sikorski, Isle of Palms SC 29451 1-800-792-1728
info@premieralarminsurance.com    www.premieralarminsurance.com
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Rick Gombar Insurance Services, Inc.  CA.  Rick Gombar, President 800-446-6227
Rick@gombarinsurance.com   www.gombarinsurance.com
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Eclipse Marketing & Insurance Services. Larry St John, CIC, Pres. 800-530-4448, LStJohn@eclipseinsurance.com -  ins for alarm industry www.eclipseinsurance.com
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Financial Services
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Alarm Financial Services - funding  for alarm dealers throughout the United States. 
www.alarmfunding.com or call Jim Wooster 866-204-9350x12
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RMRFunding - Alarm account funding.  www.rmrfunding.com Contact David Tropper (855) 767-1900  dtropper@rmrfunding.com
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Educational and Training Programs
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New York State alarm license  Approved 81-HOUR License Course  www.mbfaa.com
contact Alan Glasser (718) 894-6712  mbfaa.ny@gmail.com
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NYS 81 hour approved training - contact NYBFAA  814-838-3093   Info@NYBFA.org)  www.NYBFA.org
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New York State 81-Hour Alarm License Course - Approved by NY Dept. of State taught by NYBPSS Licensed Instructors; www.electricaltrainingcenterli.com Call Justin or Barbara @ 631-226-8021
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New Jersey  Fire Alarm, Burglar Alarm & Locksmith training.  Exam Prep Training Series, Practice Exam and approved CEU courses.  see  www.NJCEUcenter.com or call  Bob Shoremount  908-637-8557
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Attrition Busters Presentations-Seminars-Workshops-Consulting  www.attritionbusters.com
contact Bob Harris(818) 730-4690 bobh@attritionbusters.com

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Florida Alarm School.  FASA and BASA classes.  Mike Fletcher  mfletcher@heeth.com  813 621 2333  www.floridaalarmschool.org.  Upcoming classes  Oct 24 - Pensacola - Renewal; Oct 25/26 - Pensacola - New Agent; Oct 29/30 - Tampa - New Agent; Nov 2 - Gainesville - Renewal; Nov 7 - Miami - Renewal; Nov 8/9 - Miami - New Agent
 
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  Marketing for the Alarm - Security Industry
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Bob Maunsell - Security Marketing Guru - www.SecurityMarketingGuru.com  508-835-1123  support@securitymarketingguru.com
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Security Dealer Marketing - full-service marketing agency for security businesses  David Morgan
888-572-4450 x100  dmorgan@securitydealermarketing.com    www.securitydealermarketing.com
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Technical Support
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Fire Alarm System Engineering
Fire Alarm Design Services.  Complete code consulting, basis for design reports, AutoCAD, submittal documents. PE and NICET IV on staff. NY, NJ, PA areas.  Contact Joseph Hayes, SET 914-645-1289 or HayesCPP@optonline.net
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Systems Support Specialists - Technical consultants for Central Station Services & Installation Services, Custom Programming, End User Solutions, Product Evaluations, and Technical training - Contact Mark Fischer - mfischer@systemssupportspecialists.com or (631) 850-0084   www.systemssupportspecialists.com
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Certified System Design – Central Station Facility Design, Automation Platform Conversion Management, Organizational Development, Operational Reviews, and Operational Support. For all things Central Station – Contact Dave Mann (443) 452-9235 or dmann@certifiedsystemdesign.com   www.certifiedsystemdesign.com
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Miscellaneous
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Printers   MonitoringContracts.com.  Authorized printers for the Kirschenbaum Contracts TM. 866 322 4906  sales@MonitoringContracts.com   www.monitoringcontracts.com
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alarm contracts - get them at www.alarmcontracts.com
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alarm company valuation - go to www.WhatsMyAlarmCompanyWorth.com
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Legal service for acquisition or sale of accounts.  Contact Ken Kirschenbaum, Esq 
at 516 747 6700 ext 301, Jennifer Kirschenbaum,Esq  at 516 747 6700 ext 302 or Dennis Stern, Esq  at 516 747 6700 ext 323

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden city Plaza
Garden City, NY 11530
516 747 6700 x 301
email: ken@kirschenbaumesq.com
phone: 516 747 6700
web: http://www.kirschenbaumesq.com