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    Whether you are considering selling some subscriber accounts or your entire alarm company you are going to have to make very important decisions quite different than you typically make on a daily basis.  The sale of your business may very well impact your finances and your life style.  The transition from working daily, running a company, hustling for business and worrying about keeping that business, earning a steady income and all the perks that come with owning your own business, to a large amount of money that you now have to think about investing, more leisure time on your hands and less stress.  At least that's the goal.  
    You might be just starting out in your business and think that my comments are too remote for your to think about, or you may already be in contract to sell your business [and perhaps thinking you wish you had read this sooner].  Eventually every one of you will either sell or turn over your business to someone else.  If you are selling you want the best deal you can get, and why not, you've certainly worked hard enough to deserve it.  If you are turning your business over to your kids then that probably means you've built a company that provided for you and will now be able to provide for your kids and their kids [unless of course you're turning your business over to one or more of your creditors - which means this may be the first email I've sent that you actually read !!].
    There are a number of professionals that you need to engage, sooner, not later, to guide, assist and represent you in your efforts.  First, of course, is competent legal counsel, and we've got you covered at my firm, from set up, organization, contracts, business relationships, employee relationships, collections, defense, acquisitions and selling your company.  You can always call me (516 747 6700 x 301), or our specialty alarm departments:  Mergers and Acquisitions: Jennifer Kirschenbaum,Esq, 516 747 6700 x 302 or Dennis Stern,Esq.,  516 747 6700 x 323; collections [in NY and NJ]: Gene Rosen,Esq. 516 747 6700 x 303; defense: Ken Kirschenbaum, Esq., 516 747 6700 x 301 or Neil Asnen,Esq., 516 747 6700 x 311.
    Your accountant will be an integral part of your business growth and will participate in any sale or transition.  
    If you're selling it's a good idea to engage a broker familiar with the alarm industry.  Brokers have a unique perspective on pricing, marketing and assisting you with the sale of your business.  I recently had a chat with perhaps the premiere and best known broker in the alarm industry, Ron Davis.  He's a wealth of information and a good story teller too.  After talking to him I thought I would see how close my thinking is to Ron's take on selling your business.  Ron Davis limits his brokerage business to representing selling companies.  In one of his recent email publications he listed a bunch of alarm companies he was representing for sale.  The blurbs that he disclosed for these various companies had several characteristics they shared.  Here is what seems to stand out from a broker's perspective that is important to let potential buyers know about your selling business (not necessarily in order of importance):
1. RMR - recurring monthly revenue
2. contracts
2. seller and key personnel to remain for transition
3. EBITDA showing profit; solid business history and good reputation [EBITDA is earnings before interest, taxes, depreciation and amortization - Adjusted EBITDA  means earnings before the owner took salary and other expenses that were not strictly necessary for the operation of the business and a buyer would not incur].  EBITDA is an alternative method of valuing a company.  Dennis Stern, Esq in our office is comfortable with this analysis and it may be useful to larger companies. 
4. combination of RMR monitoring, service and leasing, or good mix commercial / residential
5. own lines to central station
6. auto pay subscribers
    Ron Davis certainly knows this industry and I don't know many who work as hard as he does for his clients.  You can reach Ron at rdavis@graybeardsrus.com, check out his web site for Davis Group Mergers & Acquisitions at www.graybeardsrus.com or call him on his cell in the middle of the night - I don't think he sleeps or rests - sorry - I won't give out his cell.

    On February 27, 2012 I circulated an article of what buyers would be interested in when looking for a company, the reverse view of what a seller should be presenting to potential buyers.  The article can be read at
https://www.kirschenbaumesq.com/article/what-buyers-of-alarm-accounts-should-consider-february-27-2012

      Keep in mind that the Acquisition Group at Kirschenbaum & Kirschenbaum PC is skilled in the alarm industry and here to represent you in either buy or sell alarm transactions.  Give me or Jennifer Kirschenbaum, Esq a call. 
 
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