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 ****************************** Why it matters who your buyer is when selling accounts Part 9 May 14, 2025 ************************ Why it matters who your buyer is when selling accounts
************************* Sellers often express concerns when selling their accounts prioritizing their employees and customers, sometimes over their own interests. Whatever their concerns sellers should all share a common concern, the integrity and reputation of the buyer and also whether the buyer is going to be able to meet the seller's expectations after the closing. Seller need to be careful about dealing with buyers who may not, and worse are not likely to, meet seller's expectations when it comes to the employees and customers. Even those sellers who are primarily concerned with getting paid, and getting the highest price, should recognize that a buyer who fails to follow up with other representations made during contract negotiations is likely to fail on perhaps the ultimate issue, seller getting paid. Almost all alarm deals involve a seller guarantee that the accounts will remain current and active for the guarantee period. To the extent an account is lost it's the seller that suffers because the purchase price of the deal is reduced. A buyer could use the guarantee period to shake out less desirable accounts. What constitutes a less desirable account is, to put it one way, "in the eye of the beholder". By that I mean that seller may consider the account perfectly great and the buyer think the account is not worth keeping, especially if its going to be carved out of the deal and buyer is not buying that account. This could include an account that though lucrative to the seller is a problem for the buyer because it's not geographically ideal or uses equipment the buyer isn't use to or profession servicing. The account might be a significant part of the purchase price and one that the seller would not have considered carving out of a deal, yet that's how it ends up, at seller's expense. Sellers would be wise to look into the reputation of a buyer. That starts with the buyer's own customer base; are they generally satisfied or does the buyer suffer from numerous negative social media comments and high attrition? Does the buyer have a history with prior acquisitions? Seller should not be shy about calling a prior seller and asking about the experience with the buyer. Professionals also may know things that they are able to discuss when not handcuffed with professional confidentiality. ************************* 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
