see below for The Alarm Exchange
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As this year is quickly coming to an end it's time to take a close look at your accounts receivables. Poor paying subscribers who are out of their usual paying cycle may be hanging on trying to make it through the end of the year. These subscribers may be taking care of only essential bills necessary to keep them in operation until they pull the plug. How you approach rising accounts receivables is important for the health of your business. As a general rule, nice guys finish last in this scenario.
What should you watch for? You know your subscriber's payment history. It's when the subscriber falls out of routine that you need to be concerned. Even a subscriber who pays in 10 days needs to be contacted if the payment is not made in accordance with the payment history. Why the change in payment routine? As the failure to pay goes from 30 to 60 to 90 days you have to become more aggressive in your efforts to get paid. By all means contact the subscriber. Avoid unpleasant conversation, and don't threaten. Your initial contact should be to find out if payment has been sent, why not, and when can it be expected. Inquire how the subscriber's business is going, and listen to the response. A subscriber crying the blues may not be crying wolf this time. If there is any indication that the subscriber is winding up its business or considering bankruptcy, or explains that it, he or she, can't make ends meet, it's time to get aggressive [unless you're willing to let the sub go].
If you are using the Standard Form Contracts you have a security interest provision that permits you to file a financing statement, effectively turning you into a secured creditor. That distinction may make a difference if the subscriber files bankruptcy or tries to or does sell its business or assets.
Declare the subscriber in default, terminate services and pursue your contract rights. Being aggressive means getting started. The early bird catches the worm. [Your subscribers would say the worm catches the bird]. As long as you don't make it personal by getting nasty your subscriber shouldn't think of you as a "worm", or worse. My very first alarm client had terrible collection results and he couldn't understand why I was collecting for all the other alarm companies but had such a hard time with his cases. Well, before he sent me the cases he tortured and abused the subscribers. By the time I got involved I frequently heard "I hate your client and I'd rather spend money on legal fees than pay him a dime". Don't make it personal. Being nice but firm will achieve better results.
Starting lawsuits will also achieve better results. The first to start collection efforts are more likely to get paid. Debt and creditors can be viewed as an iceberg. If you're one of the first to take action you're on the tip of that iceberg, but there's plenty below you and once they get started the subscriber will have no choice but to shut down; nobody gets paid then.
Don't think that by starting collection action you will disenfranchise your subscriber. That's not typically the result. It's the telephone calls and threats that turn a subscriber off, not your efforts to get paid. Again, don't make it personal. Your subscriber understand that you're owed money and may even want to pay. Creditors that are more insistent and aggressive get priority.
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Question re attrition
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Ken
I run a small electronic security company - what % of attrition is the standard in the industry? If there is one.
Thank You
Annette T. El-Jor, Operations Manager
All Secure Watchdog Security
Mechanicsville, VA
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Response
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Although I've heard from some experienced and highly regarded people on this topic who suggest that a range of 10 to 12% is not uncommon, I believe that 4 to 8% is a more acceptable range. If you're outside the range you need to look at your operation and determine why your rate is on the high side. Higher than normal attrition can certainly be the consequence of factors beyond your control, but you should try and figure that out. There may be things you can do to reduce your attrition and keep your RMR maximized.
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Alarm industry trivia - where did term RMR come from?
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Ken.
More Industry Trivia....Lots of interaction in the Newsletter mention the term "RMR Multiple". Ever wonder where the term came from?
Most analysts seem to agree that it started with Honeywell Protection Services/ HPS about 1972. Honeywell was one of the first giants to enter the alarm industry by acquisition & consolidation of large regional independent alarm companies. I was part of that first team that built HPS and can share some experiences.
Old timers will recall this was the era of "McCulloh Loop" and "Direct Wire", which meant the telephone line for monitored alarms was priced by the distance from the monitoring station, thus a practical operating radius for a typical monitoring station could be just 25-50 miles. The cost of a telephone line could be as much or greater than the monitoring/service change. Revenue and operating standards from a typical alarm company was extremely fragmented with very weak documentation.
Honeywell made the first dozen regional acquisitions based upon the long range strategy, rather than traditional rules of ROI, multiple of cashflow, EBITDA, etc. The term, "Multiple of RMR", was created as one of the tools for comparing and measuring the many fragmented acquisitions.... a multiple of RMR was never used for determining market value (until many years later). We had to strip away and isolate the many sources of revenue and related costs, such as the phone lines. Even today, alarm companies have sources of value in addition to the RMR, as noted by Dennis and others in recent Newsletters.
Lee Jones
Support Services Group
949-361-3300
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Response - thanks for sharing Lee
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking engagements:
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Want to schedule me, Jennifer or Dennis Stern for a speaking engagement? Alarm associations can book my presentation by calling Eileen in my office at 516 747 6700 x 312.
The Alarm Exchange
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This area is reserved for alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;
There is no charge to post a listing here. The listing is subject to review and approval and will be posted for approximately 10 days unless renewed. Include your contact information, phone, email and web site. Posting by category will depend on response to this forum. Send your post to Ken@KirschenbaumEsq.com. To see the most current postings go to https://www.kirschenbaumesq.com/article/the-alarm-exchange
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Help Wanted:
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Key West FL Alarm Company seeking experienced alarm technician. Send resume with references and salary requirements to scotts@barnesalarmsystems.com. No phone calls please.
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NYC alarm company looking for experienced alarm techs.and operators Call Dana 212 206 0900 or email to unitednyjobs@aol.com
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NYC central station looking for experienced general manager. Contact Ken Kirschenbaum at 516 747 6700 ext 301. All inquiries will be keep confidential.
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Long Island Central Station Alarm Company looking for experienced alarm technicians and central station operators. Excellent salary and benefits. E-Mail hr@lowittalarms.com or call 516-433-6960 ext. 215.
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Oakland, CA company looking for experienced electronic technician – alarms, CCTV, access control, intercoms, etc. Send resume and references to HR@reedbrothers.com or call Nancy at 800-400-5625 x158
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Long Island, NY based fire and security technology manufacturer is looking for:
1. experienced installation technicians who are interested in exploring a technical support role.
2. a Fire Product Marketing Manager to join their team in the company HQ in Amityville, NY
3. a Software Quality Assurance Tester
Send a current resume and salary requirements in confidence to rbaker@napcosecurity.com
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Indianapolis, IN - Hoosier Security call 317-644-0570 or send resume to: armando@hoosiersecurity.com Actively seeking installation contractors and sales personnel experienced in alarm and digital CCTV.
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Eastpointe Michigan alarm company has an opening for an experienced alarm tech/installer, great salary, benefits, truck, medical. Call Hank Luks 586-772-6100 or email to www.controllor@aol.com
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San Antonio Texas based company is looking for experienced residential, commercial and fire alarm salesmen as well as experienced alarm installers. Submit resume via e-mail to Gmunford@saalarms.com Glenn Munford, President. Phone 210 342-3100 www.sanantoniosecurityalarms.com
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Washington DC area Home Automation company seeking experienced alarm technicians. Send resume with references and salary requirements to jobs@american-automation.com
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Western Suffolk alarm company looking for exp'd office help- exp in Microsoft office, downloading of alarm panel, inventory, collections, sales and general office help. Send resume to Jeanne@checkmatesecurity.com
631 669-3303 www.Checkmate Security
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Northern New Jersey Fire Protection Company is looking for an experienced Fire Alarm Technician, with at least 3 years’ experience. Send resume to laura@cityfire.com
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NJ Alarm Company (Bergen County), seeking a Central Station Operator for the 5pm – 12:00pm shift. Email resume and salary requirements to service@merchantsalarm.com . No phone calls please.
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California and Texas alarm company seeking Central Station Manager, Customer Service Manager, Operations Manager, Sprinkler Operations Manager, Service Manager, Project Manager, Service Technicians, Lenel Certified Technicians, Installers, Fire Testers, Reg 4 Fire Testers, Service Dispatchers, Central Station Dispatchers, and Sales Representatives in locations throughout California and Texas. email resume to bwatkins@ssdsystems.com
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Union, NJ alarm company looking for Service Technician, Installation Technician, and
Administrative Assistant. Send resume to humanresources@supremealarm.com
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Clifton, N.J. based alarm company looking for an aggressive sales person. commercial and residential fire alarms, burglar alarms, CCTV systems, Door Access Control Systems, Intercoms, etc. We are looking for a motivated self started, a professional with proven results and references. If you have the experience, product knowledge and drive call 1-800-486-5019 and ask for Tom Sr. or email tomsr@tralarm.com http://tralarm.com/
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Merger and Acquisitions
NY - looking to purchase fire alarm subscriber accounts in New York metropolitan area. call Bob WIlliams at Briscoe Protective Systems Inc at 888 274 7263 ext 211 or email bobw@briscoeprotective.com All calls strictly confidential
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Southeast Arkansas. Security Integration co very lucrative agricultural vertical market, but having difficulty attracting and retaining installers to keep up with our workload. Primarily commercial/industrial integration but with approx. 240 monitored alarm accounts. Largely residential, upscale accounts with approx. 20% commercial accounts. Will consider either selling alarm accounts to focus on surveillance/access control or will consider selling all and work as regional sales manager for purchaser. Market has loads of potential. For confidentiality reasons, please contact me at my "other" email address hogshogshogs@att.net.
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Central Stations
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Nationwide Digital Monitoring - monitoring all of America UL Listed; NYC FD approved
800 221 0826 www.NationwideDigital.com Contact Alan Ankeles aankeles@NationwideDigital.com
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U.S.A. Central Station Alarm Corp - monitoring throughout the United States Bart Didden 877-872-1266
bdidden@usacentralstation.com www.usacentralstation.com
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United Certified Central Station Inc - monitoring the New York City metropolitan area. NYC Fire Dept approved and UL Listed. Dana Goffer 212 206 0900 x 301 http://www.weprotect.com/Monitoring%20station.html
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Counterforce Central Alarm Services Corp UL Listed NYC FD approved contact Phil Blair 718 575 3333 Phil@counterforcecentral.com http://counterforcecentral.com/services/index.htm
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Metrodial Central Station - FDNY Approved and UL Listed. Contact Andy Lowitt at 866-900-METRO or andy@metrodial.com www.metrodial.com
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COPS Monitoring: Nationwide Burglary, Fire, PERS, Video, & Critical Environmental monitoring from 5 central stations copsmonitoring.com http://copsmonitoring.com/lp/kk.html or call Betty at 800-367-2677 x 1256
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All American Monitoring – throughout USA. UL, Five Diamond, licensed LisaF@AllAmericanMonitoring.com or call 800 318 9486 x 212 www.AllAmericanMonitoring.com
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RESPONSE CENTER USA – Monitoring burglar and fire alarms. PERS (Medical Alarms) Specialists UL Listed.
contact JD Benfer 866-489-4105 jdbenfer@rc-usa.com www.rc-usa.com
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United Central Control, Inc. - UL Listed, 5 Diamond Certified, serving the entire USA - contact Kathryn Schultz - 866-907-4712 or kschultz@teamucc.com http://www.teamucc.com/
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AvantGuard Monitoring Centers : UL 2050 Listed, 5 Diamond, Fully Redundant Central Stations Specialize in PERS monitoring. Contact Troy Iverson 877-206-9141 www.agmonitoring.com
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Electronix Systems Central Station Alarms Inc., UL Listed, FDNY Approved
and Five Diamond Rated. Contact Jacqueline Jones
jackiej@electronixsystems.com (631) 271-4000 www.electronixsystems.com
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SentryNet monitoring nationwide, Canada and Mexico - UL and 2050 listed; FM Certified. Contact Kurt Erdman kerdman@sentrynet.com 800-932-3304 www.sentrynet.com
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Grand Central Station – monitoring of burglary, fire and video verification services throughout the United States. UL Listed Benny M. Martinez 800-230-1654x136 bmartinez@gcsmonitoring.com www.gcsmonitoring.com
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Security Response Center – alarm monitoring across Canada – ULC Listed
Beverley Champagne 888-346-6302 bchampagne@src.net http://src.net/
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Central Security Communications, Inc. monitoring throughout USA since 1963; UL listed; Denver Fire License; redundancy; family owned/operated 1-888-8ALARM8 Natalie@centralsecurity.com www.centralsecurity.com
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Business Brokers / Consultants
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Ron Davis Davis Mergers and Acquisitions Group Inc rdavis@graybeardsrus.com Office 847 955 2345
Cell: 847 910 7716 www.graybeardsrus.com
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Mitch Reitman S.I.C. Consulting, Inc. Tax and Financial services 817-698-9999 MReitman@sicc.us www.sicc.us
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Rory Russell Acquisition & Funding Services www.afssmartfunding.com (800) 354-3863 Cell 518-366-5111
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Barry Epstein - Vertex Capital - representing Buyers and Sellers in Life Safety Industry. bepstein4@sbcglobal.net cell:972-740-2740
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Insurance brokers / insurance companies for alarm industry
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Alice Cornett Giacalone, Senior Vice President - selling alarm E&O throughout the United States
Central Insurance Agency, (800) 917-2542 aliceg@ciainsures.com www.ciainsures.com
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Ralph A.Costa - specializes in alarm insurance in New Jersey and other states 973 835 8444
ralph@burglaralarminsurance.com http://www.burglaralarminsurance.com/category.aspx?id=MISC1
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Security America Risk Retention Group Alarm industry owned and sponsored E&O insurance – Call SARRG at 1-866-315-3838, or info@securityamericarrg.com. www.securityamericarrg.com
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Premier Alarm Insurance, Kristin Sikorski, Isle of Palms SC 29451 1-800-792-1728
info@premieralarminsurance.com www.premieralarminsurance.com
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Rick Gombar Insurance Services, Inc. CA. Rick Gombar, President 800-446-6227
Rick@gombarinsurance.com www.gombarinsurance.com
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Eclipse Marketing & Insurance Services. Larry St John, CIC, Pres. 800-530-4448, LStJohn@eclipseinsurance.com - ins for alarm industry www.eclipseinsurance.com
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Financial Services
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Alarm Financial Services - funding for alarm dealers throughout the United States.
www.alarmfunding.com or call Jim Wooster 866-204-9350x12
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RMRFunding - Alarm account funding. www.rmrfunding.com Contact David Tropper (855) 767-1900 dtropper@rmrfunding.com
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Educational and Training Programs
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New York State alarm license Approved 81-HOUR License Course www.mbfaa.com
contact Alan Glasser (718) 894-6712 mbfaa.ny@gmail.com
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NYS 81 hour approved training - contact NYBFAA 814-838-3093 Info@NYBFA.org) www.NYBFA.org
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New Jersey Fire Alarm, Burglar Alarm & Locksmith training. Exam Prep Training Series, Practice Exam and approved CEU courses. see www.NJCEUcenter.com or call Bob Shoremount 908-637-8557
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Attrition Busters Presentations-Seminars-Workshops-Consulting www.attritionbusters.com
contact Bob Harris(818) 730-4690 bobh@attritionbusters.com
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Florida Alarm School. FASA and BASA classes. Mike Fletcher mfletcher@heeth.com 813 621 2333 www.floridaalarmschool.org. Upcoming classes Oct 24 - Pensacola - Renewal; Oct 25/26 - Pensacola - New Agent; Oct 29/30 - Tampa - New Agent; Nov 2 - Gainesville - Renewal; Nov 7 - Miami - Renewal; Nov 8/9 - Miami - New Agent
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Marketing for the Alarm - Security Industry
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Bob Maunsell - Security Marketing Guru - www.SecurityMarketingGuru.com 508-835-1123 support@securitymarketingguru.com
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Security Dealer Marketing - full-service marketing agency for security businesses David Morgan
888-572-4450 x100 dmorgan@securitydealermarketing.com www.securitydealermarketing.com
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Technical Support
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Fire Alarm System Engineering
Fire Alarm Design Services. Complete code consulting, basis for design reports, AutoCAD, submittal documents. PE and NICET IV on staff. NY, NJ, PA areas. Contact Joseph Hayes, SET 914-645-1289 or HayesCPP@optonline.net
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Systems Support Specialists - Technical consultants for Central Station Services & Installation Services, Custom Programming, End User Solutions, Product Evaluations, and Technical training - Contact Mark Fischer - mfischer@systemssupportspecialists.com or (631) 850-0084 www.systemssupportspecialists.com
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Certified System Design – Central Station Facility Design, Automation Platform Conversion Management, Organizational Development, Operational Reviews, and Operational Support. For all things Central Station – Contact Dave Mann (443) 452-9235 or dmann@certifiedsystemdesign.com www.certifiedsystemdesign.com
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Miscellaneous
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Printers MonitoringContracts.com. Authorized printers for the Kirschenbaum Contracts TM. 866 322 4906 sales@MonitoringContracts.com www.monitoringcontracts.com
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alarm contracts - get them at www.alarmcontracts.com
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alarm company valuation - go to www.WhatsMyAlarmCompanyWorth.com
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Legal service for acquisition or sale of accounts. Contact Ken Kirschenbaum, Esq at 516 747 6700 ext 301, Jennifer Kirschenbaum,Esq at 516 747 6700 ext 302 or Dennis Stern, Esq at 516 747 6700 ext 323
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Many of you are forwarding these emails to friends or asking that others be added to the list.
Please tell your friends and employees to go to the Home Page on my web site and sign up for the emails. Thanks.
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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
email: ken@kirschenbaumesq.com
phone: 516 747 6700
web: http://www.kirschenbaumesq.com