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comments on advice for selling alarm business June 6, 2018

KEN KIRSCHENBAUM, ESQ 
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE 
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comments on advice for selling alarm business 
June 6, 2018 
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comments on advice for selling alarm business from May 24, 2018
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Ken
    Alarm Funding Associates model allows you to take profit up front, without going out of business. 90% upfront.  You stay in business, keep all service, upgrades, new accounts.  No Fee’s, and access to on-going funding.  I am always glad to show a customer my custom calculator that outlines keeping accounts vs. selling.  In the end, the selling accounts model may be more beneficial.  
Gary Corsale
Alarm Funding Associates
516 242-9327
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Response
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    So your model is really not a buy-out, it's a finance vehicle.  What does the interest rate calculation come to?  Now figure the attrition rate and calculate that into the equation.  What is the real cost of accepting financing?
    Some companies need or just want to sell because it's time.  But financing accounts to balance your low or no cost installations is still probably a better idea than thinking you're in the alarm business for yourself when all you really are is a sales agent for a dealer program and ending up with nothing.  That's my opinion.
    Alarm Funding Associates is listed on TheAlarmExchange.com, in the Financial Services category and that means you can trust them.
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another comment
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Ken
    Questions You Must Answer Before Selling Your Alarm Business
    Thinking about putting your alarm company on the market? 
    As you approach the potential sale of your business, there are many things you’ll need to carefully consider and many questions you’ll need to answer, both on a personal and on a business level.  Even after you list your company for sale, some of these questions may remain unanswered. 
But before you move forward with initiating the sale process by putting your company on the market and starting the search for qualified buyers, there are a handful of questions you absolutely must answer if you hope to sell successfully and for a sizable profit. 
    Key Questions to Answer Before Putting Your Alarm Company on the Market.  Alarm company owners should ensure that they know the answers to these questions before taking steps towards selling.  


1.    Is Now a Good Time to Sell?
This may seem obvious, but it’s very important. For many alarm company owners, the time when it feels right to sell on a personal or professional level does not quite line up with the time that industry trends indicate it’s the ideal time to sell. If you want to sell your company for maximum profit, you’ll want to be sure that you wait for the right time. Look for trends that indicate it’s a seller’s market before you move forward with initiating the sale process.


2.    Am I Ready to Let Go of Company Ownership?
This is somewhat of a personal question but it’s one that every alarm business owner must ask and answer honestly before putting a company up for sale. Letting go of the reins can be a very difficult thing to do, especially after you’ve spent your life and career building a successful company that you’re proud of. If you’re not ready to relinquish control, then selling your entire alarm business may not be the best choice. Selling some of your accounts may be the better option.


3.    How Is the Internet of Things Impacting My Business?
In this day and age, the Internet of Things is powerfully impacting many industries - including the alarm security industry.  Before putting your company on the market, you’ll want to have a good understanding of how the Internet of Things may be affecting your company specifically. Whether it’s made certain aspects of your business obsolete or you’ve made some upgrades that have kept your company competitive, you’ll want to be aware. Consider what buyers will think of your business’ strategy for adapting to the Internet of Things and contemplate making changes to keep with the times if you feel that doing so may help you to sell for a higher profit.  Find out if your alarm company seems outdated and, if it is, what to do about it.


4.    Do I Have a Viable Succession Plan in Place?
A business succession plan is an important thing to have as a company owner preparing for a transition, but it’s also something that many potential buyers look for when they’re considering their options for purchasing a business. It’s a sign of a healthy, stable company. As such, you’ll absolutely want to have one in place before moving forward with putting your company on the market.


5.    How Much is My Alarm Business Worth? 
This is an important question to know the answer to while you own and manage your company, but it’s especially important to understand as you approach the possibility of selling.  Knowing how much your alarm business is worth can help you determine how much you should realistically sell it for, plus it will help you to communicate its true value to potential buyers. It’s a very important thing to have a handle on. Review the factors that influence your alarm company’s worth here. Interested in an alarm company valuation? 
    You can get Ken to value your alarm company here:  WhatsMyAlarmCompanyWorth.com


6.    Do I Know of An Alarm Company Broker I Can Trust?
An alarm company broker is an incredibly valuable ally when it comes to selling an alarm business. They know the ins and outs of the industry, plus they’ll get to know the specifics of your company so they can help you find a buyer that’s well suited and an offer that’s appropriate and profitable. Before you make plans to sell, it’s in your best interest to find an alarm company broker who can help you along the way. 
    You can find brokers you can trust on TheAlarmExchange.com


7.    Does My Company Have A Unique Selling Point?
If you want to attract well qualified buyers and sell your company for top dollar, you’re going to need something to make your company really stand out from the rest. You may already have a unique aspect of your company that will make it appealing to buyers. The question is - can you articulate the unique selling point?  You’ll need to be prepared to highlight your company’s unique selling point before you put it on the market, so you’ll want to give some thought to this question well ahead of time and take action to refine your USP before moving forward.


8.    Are Interested Buyers Well-Qualified?
If you’re considering putting your company on the market either because you’ve been approached by interested buyers or because you anticipate buyer interest, take a step back and assess the potential buyers themselves. You want to be sure that you’re generating interest from qualified buyers who can continue your company’s growth and positive reputation well into the future. You’ll also want to be confident that the buyers will understand the true value of your company and be willing to pay top dollar for it.


    Answering these questions will help you to prepare both yourself and your company for a successful sale. If you are unsure of the answers to any of these questions, it is likely worth taking a step back to get your ducks in a row before putting your business on the market. Need help getting your affairs in order and answering these questions?   Give me a call.
Rory Russell
www.AFSSmartFunding.com
Phone (518) 656-9268
Cell (518) 366-5111
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Response
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    Rory is listed on The Alarm Exchange in the broker category.  He's a hard worker and you can trust him.  I'll add one point they they both missed, get new updated contracts at www.alarmcontracts.com.  You don't have to go out and get all your subscribers to sign the new contract, but you do have to start using it now, not later, and you should try and get all your renewals to sign new contracts.  Contracts can make the difference of 10 points on the multiple.  Well worth the cost of the contracts and the effort to get them signed.
 
 
 
 
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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
516 747 6700
www.KirschenbaumEsq.com