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 right contracts for acquiring fire alarm contracts over time December 8, 2025 ********************* comment on right contracts for acquiring fire alarm contracts over time from article on November 28, 2025 ********************** Ken, I just read you November 28th, 2025 response to John who wants to “DIY” the purchase of accounts from a fire alarm company. You correctly pointed out that your “DIY” Agreement is for a customer that has self-installed an alarm system, not for a business that wants to “DIY” a purchase of accounts. It appears that many of the Target’s monitoring agreements were destroyed in a fire, which is a bit humous because I would think that the owner of a fire alarm company would have understood the value of storing assets this valuable in a fire proof cabinets or keeping electronic copies of them in another location. You correctly pointed out that there are a lot of legal ramifications to a transaction like this and I agree that John should retain your firm and not try to DIY this. I see one law that you didn’t mention and that is Murphy’s law. If John moves forward with this piecemeal transaction the operational issues are sure to come up. As John gets new contracts he is going to have to inform customers (who don’t always pay attention) what is happening. There will be a new company to call for service – these are fire accounts that need to be functional 24/7, there may be a new central station to call to cancel an alarm (false fire alarms that should have been cancelled expose firefighters to dangerous and tragic situations), payments going to the wrong company, and a virtual parade of bad things that can happen. John’s accountant most probably doesn’t know how to structure the transaction for the best tax treatment, and, next year, when the tax return is due. it will be too late to deal with it. John should also inspect each and every install. Fire alarms are complicated and there is very little tolerance for systems that don’t conform to Code. There are a lot of companies installing fire systems who “don’t know what they don’t know.” The same thing goes for lawyers, accountants, and company owners who are experienced in transactions, especially in the alarm industry. Don’t DIY this John. Mitch Reitman 817 698 9999 XT 101 Reitman Consulting Group Fort Worth, TX ********************** Response ********************** You might wonder why K&K offers the two variations of the Asset Purchase Agreement on its Contract Order Form. Here's why and here is what I suggest to clients who inquire about the two forms: Buyers and Sellers are usually concerned with important issues in connection with the sale of the accounts, but they simply do not know or understand all the issues that need to be address in the transaction. The two APP forms present these issues so that the Buyer and Seller can consider them and hopefully reach agreement. The form for 100 accounts is a bit more complex, raises more issues and offers more options. The form has check boxes to select which provision is going to be agreed to for specific issues. But before that "DIY" APA gets finalized the Buyer and Seller should heed the stern advice at the top of the form warning that a lawyer needs to be involved. If the attorney is not familiar with alarm deals then the various issues raised will be a revelation, though what is customary, fair and needs to be modified will not be apparent; for that insight you need an attorney expert in this industry's issues. If you're getting these articles you know where to find such attorneys. So the forms raise the issues that should be addressed in these agreements. Getting the APA form agreements and trying to work through the issues is a good way to start negotiations because the parties will have a better ides what issues they need to think about. Using the forms will save time when the clients asks me to complete the negotiations or finalize the APA draft because many of the questions I would need to ask will have been answered or flagged for further discussion and advice. ************************ 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
