July 5, 2011
Comment
Ken
As you may Know I help many People Buy & Sell Alarm-Security Businesses. It is the Best Advise to make sure the Buyer & Seller have good Legal representation. I just sold 800 Accounts with no Contracts to a Buyer for Half of what they would have sold for if they had contracts on them. In 8 months he got contracts on 80% of the accounts, I just resold the accounts for him and he doubled his investment.
You may want to take a look at
www.alarm-securitybusinessesforsale.com
Dennis Riley
CEO/Broker/Owner
Beltway Business Brokerage
Response
Good point. Too many alarm company owners don't think about a relationship with an attorney until its too late - by then they need a litigator, and unfortunately by then most can't afford one.
There is more to selling or acquiring alarm accounts than agreement on a multiple and confirming the RMR. So many other issues can cause potential exposure. While business brokers like Dennis are skilled at finding and structuring deals, and even helping iron out some sticky terms, they are not lawyers, and certainly not lawyers expert in buy sell transactions.
When I get a call from an alarm dealer asking me if I thought he needs a lawyer to buy or sell some subscriber accounts, my usual answer is posed as a question - does he think I could rewire a panel? I can't, and you can't handle a legal transaction unless you are a lawyer.
I'd like to do a few articles on what sellers and buyers need to watch out for on a buy - sell transaction. I'd like each of the business brokers out there who read this forum to present 5 of their top concerns - I'll be circulating the comments and giving full credit to the broker with the ideas.