KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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have you noticed the uptick in merger and acquisitions in the alarm industry / comment on renewal letter
August 21, 2018
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have you noticed the uptick in merger and acquisitions in the alarm industry?
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            Buying or selling alarm accounts is not new, but there seems to be an increase in activity lately, and by lately I mean the last few years.  The deals are increasing, not slowing down.  I am not talking about the mega deals, $100 million plus, but the kind of deals that many alarm business owners can expect to see, a range between $1 to $15 million.  
            I have a theory why there is so much activity selling and buying alarm businesses.  
            The alarm industry really came into its own in the late 1960s and by the 1980s we saw many young business people starting alarm companies.  These were the baby boomers, and now they are coming to retirement age.  Most can look back with satisfaction that they picked the right business when they chose the alarm industry.  It provided a livelihood for 30 or more years, and now it is providing a nest egg for retirement.  That is, assuming a few simple principles of conducting business were followed.  I can look back with satisfaction knowing that I did my part for those companies that started using my contracts in the early 1980s and still do because they are the ones who have grown and prospered.  So, I think that time has caught up with the industry and many owners are now selling the business to others.  And, by the way, plenty of "old timers" are still out there working hard and buying up other companies.
            Another stimulant to the alarm industry is that hedge funds and other financial companies have discovered the value in a RMR model alarm business.  They have invested and continue to invest in the alarm industry.  They continue to try and buy up RMR, package it and then resell it, so there is some passing of accounts going on.  However,  market coverage for customers of alarm and alarm related services continues to grow dramatically, in no small measure because of the rapid pace of continuing and cheaper technology, and the massive advertising we see, primarily by the nationwide alarm companies.  So availability of cheaper technology, mass advertising and, let's not discount, a pervasive unease for personal security in an ever increasing dangerous world, bodes well for the alarm industry.
            Just thought I'd pass along my thoughts.  Anyone care to share their thoughts or comment on mine?  Just send me an email for circulation on this forum.
             And, if you're thinking about selling or buying alarm accounts, give me a call, sooner rather than later.  We can help.
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comments on renewal letter from August 15, 2018 article
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Ken,
    My response to AFA's reply to "Comment on using letter for renewal contract August 15, 2018"
1, Paranoia is just a heightened sense of awareness.  ( BUT ..... on the other hand )
2. "MY" customers are my customers because they WANT to be ….. not because I have a signed contract. 
Gene
Reliable Alarm´╗┐
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Ken
            Just a comment about the renewal letter...
            The Kirschenbaum TM Standard Form Agreements are professional and thorough.   They present quality, as your company should as well.   Don't hide under a renewal letter.  Customers who are afraid of signing a contract are the folks that will sue you.  Most of the time, the only issue is the length of the contract term which can be modified if necessary. What other business is done with an agreement?  Rental property, vehicle lease, central station services, insurance....Don't "wimp out" on the most important document that protects you and your valuation. 
Anna 
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Response
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            I agree.  Your short comment covers a lot of issues.  Once you understand that your business is selling RMR contracts the many issues come together.  Yes, there are a lot of lofty ideals being in the life safety business, and you can take pride that you have saved a life, etc., but unless this is your hobby, you also need to make a living.  And unless Bernie Sanders becomes president you better plan on funding your own retirement.  Use the Standard Form Agreements, which for some of you means that you'll have to get them.  You get them here:  www.alarmcontracts.com   For some of you, today could be the most important decision you will make for your alarm business, which contracts to use.  We've made the decision easy.  For assistance call our Contract Administrator Eileen Wagda at 516 747 6700 x 312

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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