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More on Be prepared to sell your alarm company
March 1, 2019
More on Be prepared to sell your alarm company from article on February 21, 2019
            A few more suggestions to add to your February 21, 2019 article on “Be prepared to Sell Your Alarm Company”

  • Know your RMR.  RMR stands for Recurring Monthly Revenue.  This doesn’t mean annual.  It doesn’t mean what you “bill” each month, it is what you earn.  For example a $30 per month account that is billed quarterly is not $90 or RMR in the month that it is billed.  Many companies book the entire $90 to revenue in the month that it is billed and this makes things very confusing. If you are riding the revenue roller coaster you should talk to us so that we can show you how to easily adjust your revenue entry so that you have a clear understanding of your net income. 
  • Know your attrition.  You should know how many customers cancel each month and why.  If you have 1,000 customers and  lose 100 accounts in a year and add 30 new customers, you don’t have 7% attrition.  It is north of 10%, which still isn’t bad, but you need to report it properly.
  • Ken’s column has dealt with when to stop monitoring a customer. When you do stop monitoring them, cancel them at the central station.  There is no reason to keep paying for monitoring and it makes your company look “sloppy.”
  • Remove cancelled customers from your Accounts Receivable system.  You can still attempt to collect, but there is no reason to have them on your Ageing getting further and further past due.
  • Update your contracts.  It doesn’t matter what you believe or your attorney says.  If your monitoring agreement is not acceptable to a Buyer, it won’t be bought.  Every Buyer that I know of (and that list is nearly 100) will accept a current, and properly executed, Kirschenbaum Contract.

            Think of the sale of your company as selling a car.  If it is clean, mechanically sound, and attractive to the Buyer, it will get a better price than a ‘trade in’ that isn’t so attractive.
 Mitch Reitman
 Reitman Consulting Group
Fort Worth, TX 76133
            The discussion about buying, or selling, alarm accounts usually starts with “what’s your RMR” and “do you use contracts and if so, where did you get them?”  Next question will be asking about your subscriber mix.  Interestingly, you will never get around to talking about all of the minute details, information and documentation, that you will need to close the transaction.  The list can be endless, easily reaching unnecessary and sometimes bordering on ridiculous.  It’s not that you shouldn’t have the documentation; it’s just that the documentation is often not relevant to the transaction.  For example, if the buyer is taking only the subscriber contracts why does it need a representation that your employees have all received their vacation time?
            So there are two things you can do to make your life easier, and at the same time run your company more smoothly and build up your equity faster:
  **1**  Get and use the Standard Form Agreements.  Call Contract Administrator Eileen Wagda for assistance  516 747 6700 x 312
**2**    Sign up for our Concierge Program and start enjoying the benefits of having experienced “house counsel” available when you need advice [and even when you think you don’t].  Call Program Coordinator Stacy Spector,Esq for more information and help in signing up


You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
I am looking forward to meeting all Concierge Clients in Las Vegas at ISC West​ in April.  Please make arrangements with Stacy Spector,Esq.

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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
516 747 6700