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 ****************************** Comment on Increasing sale and installation price when costs escalate June 19, 2025 *************************** Comment on Increasing sale and installation price when costs escalate from article on June 4, 2025 *************************** Ken This is why every dealer should use your contracts. Dealer, put yourselves in the place of a buyer. Would you not want to purchase a contract with your best business interests specified or not? When we finance or are contracted to help prepare a business for sale or become more profitable your contracts are near the top of how to determine business value. The time to prepare your business for sale or to maximize operating profits is TODAY. Run your business as if you are keeping it forever or selling it. Jim Wooster. Sr. jtwooster@alarmfunding.com 866 204 9350 x 1200 cell 917 747 5379 ************************** Response ************************** Thanks for your sage advice and endorsement. I do valuations frequently. You can get your alarm company evaluated inexpensively and quickly by going to What is My Alarm Company Worth? Jim is correct that your contract figures significantly when valuing your company. There are other factors, including among them, whether your monitoring accounts can be transferred to another monitoring center easily, whether you have priced your services properly and profitably, your transportable employees, and the mix of your accounts. When all factors are considered the valuation can run from zero to over 40 times RMR. Companies that rely heavily on integration work will be valued based on EBITDA, which I prefer to define as what is the owner putting in his [or their] pocket at the end of the year. Zero? How can your business be worth zero? That was my gratuitous guess recently when the alarm company owner told me that his almost half million a year revenue was all from subcontracting. I asked one question; "Are you staying on board with the new owner to keep the work coming in?" When I got the answer in the negative I told him no one would be interested in buying. If you are interested give me a call; I have a bridge to sell you. You don't have a lot of control over much of the issues that influence the value of your operation. One issue, one of the most important, are the contracts you use. What exactly is it that keeps you from ordering the most popular and recognized contracts in the industry, and what, other than laziness, keeps you from keeping those contracts updated? Order updated contracts at www.alarmcontracts.com. And while I am at it, is there some reason you haven't joined the K&K Concierge Program? Think you don't need the advice? You do; you just may not realize it. Joining the Concierge Program not only saves you money, lot's of it the more you use the benefits, but encourages you to use the benefits. I hear from too many of you telling me you've been reading my articles for years but this is the "first time calling" [usually for free advice .....]. Join the Concierge Program and get on board [before the ship sales, or sinks]. **************************** 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
