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How to value Repair Service and Inspection RMR / Contract sale on now
January 3, 2023
How to value Repair Service and Inspection RMR
   What multiple would be applied if I sell my alarm contracts for the service contracts and fire inspections?  If I can get a 3-year fire alarm inspection contract signed from Customer at $30,000 per month.  I’m hoping to get it signed when they renew the monitoring contracts (up in February).
Name withheld
          There’s a lot that has to be considered when it comes to Service Plan RMR contracts and Inspection RMR contracts.  Costs associated with monitoring RMR is fairly easy to fix and anticipate; you know the profit on each contract.  But repair service plans are less certain, even though the covered repairs are limited to ordinary wear and tear.  Inspection RMR is slightly easier to estimate because you can estimate the inspection cost for labor and perhaps some material [though inspection does not include repairs].  So the margin is easier to calculate for monitoring, less so for inspection and even more uncertain for repair service plans.  Thus, the “multiple” for inspection and service will generally be less than for monitoring RMR. 
          If service and inspection make up a small percentage of the RMR then a buyer is likely to lump all the RMR together and offer a blended multiple for all RMR.  The higher the percentage of service and inspection RMR is, the lower the multiple is likely to be when a blended multiple is offered.
          If the service and inspection RMR is significant enough to warrant a separate calculation then expect at least a 5 point reduction from the multiple offered for the monitoring RMR.  If, for example, the multiple offered for monitoring RMR is 35 you can expect the offer for service and inspection RMR to be a 30 times multiple. 
          If the service and inspection RMR comprises the bulk of the RMR then you have a much more difficult time calculating the value.  In fact the valuation method may need to be EBITDA, not RMR.  In other words, a buyer will need to dig deep to determine the seller’s profit margin and estimate the buyer’s anticipated profit margin.  When dealing with a large inspection and service RMR, which $30,000 for an account certainly is, it better be a very significant customer with very deep pockets, because many alarm companies would not want to step into that exposure, even though the revenue appears lucrative.  More than likely the customer must think it’s a good deal – for the customer – to cap its repair and inspection expense to the set RMR.  If this is a significant part of the selling portfolio you might be looking at a multiple offer of 20 or 25, if you can find an interested buyer.
         One thing is for sure, using the Standard Form Agreements will get you the most value for your contracts.  Get them today, on sale; don't miss out.


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    The Standard Form Agreements have been updated for 2023.  Check with our Contract Administrator, Eileen Wagda, at 516 747 6700 ext 312 to see if your forms need updating.  Keep in mind that updates are free for 6 months and half price for 12 months from your original order date. Requests for updates will be processed after the new orders are processed.  The sale ends January 13, 2023; the sooner you order the sooner you will get the contracts.  Please do not call requesting priority unless you are a Concierge Client or have paid for expedited service.

How to order: order at - ordering is easy - order on-line during the sale and save thousands of dollars.  Need help ordering?  Call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for assistance. Concierge Clients can call our Concierge Program Coordinator Stacy Spector, Esq for assistance at 516 747 6700 x 304. Concierge Clients receive an additional 10% off the sale price.  You can join the Concierge Program before ordering to receive the discount and you should take advantage of this program.
    Contract sale  runs through January 13, 2023. This will definitely be the best deal of 2023. When you place the order the full price will come up. We will apply the discount manually when we process the order.  Contracts will be delivered by email only. Just order what you need - we will check and apply the proper discounts.

Here's the deal:
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    Buy 3 or more All in One forms and get same as above and $300 off the third form and $400 off the fourth form.  Save up to $1275.00 [Residential, Commercial, Fire, Home Automation]
    Commercial Mobile Surveillance Lease $1000.  Save $250
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    Qualifier Agreement $1200.00   Save $300.00
    Digital Sign And Display Sales, Hosting And Service  $437.50  save 50% $437.50
    Computer Consulting and Service   $437.50  save 50% $437.50
    Nationwide DIY with monitoring.  $3500.00    save $1000.00**
    Nationwide PERS with or without GPS tracking. $3500.00 Save $1000.00**

NEW THIS YEAR TO THE SALE:  All other contracts not listed above will be discounted 20% during the sale.  Concierge Clients will receive an additional 10%.  save thousands

* Your order must be placed on line at and received by our office no later than January 13, 2023 by midnight EST.  Orders must contain valid credit card payment and be processed; you will receive confirmation.  Fill out the order form; the full prices will show and we will apply the discount before processing the order.  Orders arriving after sale ends will be processed at regular published rates.  Orders will be processed in order received.  For Rush orders, delivered by email within 48 hours, add 15% - call Eileen to process.
       Concierge Clients will receive their Concierge Program Discount on the Sale Price.  Sign up for the Concierge Program before placing your contract order to receive the additional discount.
** Does not include consultation or modification
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Free updates within 6 months of purchase***      
Half price within 6 months to 1 year***  
*** applies to original purchase only

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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