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Comment on Net v Gross RMR and what you should expect buyer to pay
December 16, 2021
Comment on Net v Gross RMR and what you should expect buyer to pay from December 7, 2021 article
          Good that you have written subject of gross versus net RMR. Can I add some thoughts from up here in Canada?
1.      I would have thought that the sales tax would be added on top of the $20.00/mth/acc gross RMR. For sure in all deals I see in Canada sales tax is not included in gross or net RMR.
2.      I have yet to see a deal up here in Canada where regular digital monitoring charges are deducted from gross RMR to get to net RMR.
3.      As most involved in M & A for alarm accounts know, the monthly charges for cell and interactive are a much bigger factor in a deal today as they were 10 years ago.
4.      Regarding charges for cell and interactive charges some of the bigger buyers up here have backed off deducting regular monthly cell charges but are still deducting for interactive charges like
5.      When dealing with buyers who deduct cell and interactive negotiate to have those charges deducted at the buyers monthly cost which are likely to be lower than yours. After all that is where the accounts will be monitored post- closing.
Victor Harding
Harding Security Services Inc.
70 Shaftesbury Ave., Unit 10
Toronto, ON   M4T 1A3
Tel: 416.925.7474
          Gross RMR is of course the invoice sent to the subscriber.  We get to Net RMR by deducting various charges, the most obvious of which is sales tax.  Other charges, including basic monitoring charges, are negotiable.  But don’t be fooled by negotiated deductions because the balancing factor is the multiple.  Generally, you might expect to see the multiple drop as the Net RMR is more inclusive. 
          I think most alarm company owners make a big mistake trying to negotiate a sale or purchase of accounts before engaging an attorney to assist.  I get calls almost daily.  Sometimes, when the prospective deal involves only a small number of accounts or dollar amount I suggest that they get the Standard Form Asset Purchase Agreement, which comes in Long or Short form.  At the very least the client will see the important points addressed.  But it’s really not a substitute for proper representation. 
          If you want a quick and inexpensive evaluation of the alarm accounts go to
          If you want to engage K&K to assist with your sale or purchase, contact me at or 516 747 6700 x 301. 

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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