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 white list ken@kirschenbaumesq.com ************************************ Biller Genie expands with Xero accounting / Comments on selling / booth meetings at ISC March 28, 2019 ************************************ Notice: ISC West. Private meeting times are booked. Concierge Clients should call our Concierge Program Coordinator Stacy Spector,Esq at 516 747 6700 x 304 to arrange a private meeting and consultation. Open Meet and greet schedule at ISC: Wednesday 11:00 am – COPS booth ; 2:30 pm – Avant guard booth; 3:30 pm – All American Monitoring booth Thursday 11:00 am – Rapid booth; 2:30 pm – J. Krug booth ********************** Comments on selling from article on March 18, 2019 ********************* Ken Reading “Dan’s” message on your March 18th email. Dan wants to sell off some of his RMR to “downsize” but “still be in the game”. It sounds like Dan has done a great job building his company but his advisors may not be doing as well. He says “part of our motivator here as well is we are a C Corp, so if we sold all of it we’d get double taxed out of the gate as you know.” I’m not sure where Dan is getting his information but any sale of assets (including monitoring agreements) by a C Corporation is going to create tax at the corporate level. Typically when the Seller takes the cash out of the corporation it is taxed again, thus ‘double taxation’. Selling the stock of the company is an option, but stock sales, especially for less than 100% of the stock, are few and far between in this industry for a number of reasons. There isn’t a one size fits all solution but Dan should definitely talk to an advisor that understands the contemplated sale to make sure that he understands the down side. Dan doesn’t say how much RMR he has but he says that he wants to sell off the RMR to ‘cut costs and responsibilities’. While it is true that Dan would cut costs he would also cut revenue (a lot of revenue) from the RMR. Dan should have a financial person that is experienced in the industry do a quick review to determine if he can still operate with only 30% of his RMR. He may be surprised, RMR typically generates 80 -90% margins so Dan may be using this cash to cover more overhead than he realizes. He is also considering approaching his central station to see if they have buyers. I have seen central stations assist their customers in a sale and some do a great job. The problem is that central stations specialize in monitoring, not transactions. I have seen well intentioned central station employees expose their customers to disastrous consequences by trying to ‘broker’ a sale. Your advice to retain your firm is spot on. Dan should hire you and hire you early. He should also retain a good broker, preferably one from The Alarm Exchange. A good broker will be able to advise Dan and keep information about his anticipated sale from falling into the wrong hands. Finally, Dan should make sure that his tax professional understands the anticipated transaction and the best tax structure. The last thing that he wants is to consummate the transaction and find out that he is sending more money to Uncle Sam than he is putting in the bank. Mitch Reitman ********************* Response ********************* As usual, great advice. The sale of your alarm company is a significant life achievement and you need to have proper professional assistance. ********************* Biller Genieexpands with Xero accounting ******************** Ken I’m excited to announce that Biller Genie is now formally integrated with Xero accounting software After the success of our QuickBooks integration, it was a natural next step to make the same Accounts Receivable automation available to Xero users as well. We’ve talked to a few Alarm Dealers who use Xero so I wanted to extend an offer for your readers to be part of our beta community and experience first-hand how we can help get Xero invoices paid faster too. We have limited spaces available and are offering a few special incentives for those that join, so you can schedule a demohttps://hubs.ly/H0fG13H0 online or you can explore on your own and sign up for freehttps://hubs.ly/H0f8Mxd0 here. We’ve got some big news coming in the next few weeks and I’m looking forward to sharing it with you then. Thanks again With Gratitude, Thomas J. Aronica, Chief Executive Officer Miami Shores, FL 33138 D: 305.615.2125 T: 877.BillerGenie ************************ Response ************************ For credit card processing and all the free software https://hubs.ly/H0f8Mxd0– contact SkyBank Financial www.skybankfinancial.com. It’s listed on The Alarm Exchange in the financial category. Support those who support the alarm industry. ************************ CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM 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. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
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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 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
