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 ****************************** Is a buyer the best one to reliably value your alarm accounts February 12, 2025 ************************ Is a buyer the best one to reliably value your alarm accounts *********************** One of the services provided by K&K is valuing your alarm accounts. You begin that process by going to the K&K website to Whats My Alarm Company Worth. There are options as low as $80 and as high as $950 or more, depending on why you need the valuation and how comprehensive it needs to be. My curiosity was aroused when I saw an email on January 28, 2025 from SDM with the title “ How Much Are Your Alarm Accounts Worth?”. The email was sponsored by Brinks Home and offered “Must See Alarm Account Value Tool - Learn What Your Alarm Accounts Are Worth”. An on-line calculator, so I gave it a try, as some of you may have been tempted to do. I expected a long list of questions that would need answering to get to a valuation. Turns out the calculator didn’t need all that much detail to come up a valuation. All I had to give it was 1) Total Customer Count, 2) average recurring monthly revenue, 3) average years into contract, 4) average credit score and 5) percentage of customers in 5 year contract. So I put in 900 accounts and $40 average RMR, 1-2 years average into contract, average credit score [minimum calculator would accept] 700 and 40% in 5 year contract. Valuation was 25.6 to 29.6 times RMR [$921,600 to $1,065,600]. When I aggregated the RMR to $36,000 the numbers came to $903,960 to $1,033,560. Same stats but 400 accounts at $30 RMR came to 22.5 x to 26.5 x RMR, or $270,000 to $318,000. The calculator page offers a “formal quote” [although still apparently from an AI program] if you fill out a template with more questions. You have to give your name and other information to get it. Having valued alarm companies for many, many, years I can tell you that it takes more information than what was requested to get a fair valuation. I can also tell you that if you want to know how many chickens are in the coup you don’t bring in a fox to do the count. You can’t depend on a competitor and potential buyer of accounts to value your accounts. Of course a potential buyer certainly tell you what it would pay for the accounts, and that might be more or less than someone else would pay. An independent valuation would serve you best. The different levels of valuation you can get on the K&K website at https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth starts, as I mention above, at $80. For that you get a value; for $350 you find out how we arrive at that valuation and for $950 you find out what you can do to boost your value by making changes in how you operate, assuming you have the time to make those changes. You should have an understanding of what your accounts are worth before offering them for sale. While I think the buyers will ultimately determine what the accounts are worth, a seller needs to know if the offer is fair and within market range, and asking one potential buyer isn’t really the most comforting reliable value. ************************** Featured listings of alarm companies or accounts for sale ************************** If you are ready to sell or buy K&K is here to represent your legal interests in the transaction. As leading experts in the alarm/security/fire industry there is no learning curve and you can rely on our guidance throughout the process. Sellers can also look to K&K to broker the accounts or company for sale. The broker fee is one month net RMR, which is typically half of what the traditional brokers in the industry charge. If interested in listing with K&K contract Ken Kirschenbaum, Esq at 5165 747 6700 x 301 or Ken@Kirschenbaumesq.com. Active listings are found on The Alarm Exchange in the Merger and Acquisition Category. For those of you looking to acquire accounts here are the current listings available. If interested contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com **** NEW For Sale: Queens, NY. Approx. 100 security alarm accounts, divided evenly between residential and commercial customers, with aggregate of approximately $17,000 monitoring net RMR. Accounts located in 5 boroughs of NYC and Nassau County. Equipment: Hirsch Electronics, Bosch Cctv, Avigilon- Access / Cctv, Speco Cctv, Honeywell – Access Control / Panic / Intrusion, Resideo Panic / Intrusion; panels: Intrusion / Panic: Vista 20, Vista 40, Vista 128, Proa7; operation software: Hirsch Velocity, Microkey Central Station Software, Avigilon- Various, Speco Blue. Service calls “per call”. For more information contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more info and to contact Seller direct.
NEW Looking to purchase residential alarm accounts: East coast. We are ready, willing and able to purchase with minimum nonsense and delay; top multiples; contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
NEW For Sale: Houston, Texas 350 alarm monitoring accounts; 78% residential; 22% commercial; 4 commercial fire alarms. Monitoring Net RMR $9.000; Fire Alarm Inspection and Service RMR $333 for commercial fire. Most accounts cellular, M2M cellular, some on alarm.com. If interest contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
NEW For Sale: Riverside, CA: 171 alarm monitoring accounts; 90 alarm.com; 81 CMS; 43% residential; 57% commercial. Monitoring Net RMR $11.000; written contracts; Alarm.com, Uniview and Ubiquiti, 2GIG panels and Honeywell Vista; Quickbooks and alarm.com software; 3 techs; service vehicles. If interested contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
For Sale: Southern California: commercial Net RMR $17,000.00; approximately 80 customers with 324 locations. No fire. Concentrated in Los Angeles, Riverside, San Bernardino, and San Diego counties. Third party vendors: Brivo, Eagle Eye, Cradlepoint. Equipment: Genetec, Brivo, Eagle Eye, Ocularius, DMP, Dell, Axis. Monitoring center: NMC. Most under K&K contracts. Panels: DMP. Significant EBITDA. More information requires a K&K NDA. Contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Nassau County, New York. approx 221 alarm accounts. residential 190; commercial security and fire 31; RMR approx $13,230.00 [res $8844; comm security and fire $2118; Inspection RMR $2268; Resideo / Honeywell; some Radionics. Vista 20P / Vista 128BPT. Most accounts on updated K&K contracts. Contact Ken Kirschenbaum,Esq at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more information. For Sale. Phoenix area, Arizona., 181 alarm monitoring accounts [115 res; 66 commercial; commercial fire 5]. Net RMR $4700.00; DSC panel and equipment; Microkey software. Older contracts for most part. K&K NDA required for more information. Contact Ken Kirschenbaum,Esq at ken@kirschenbaumesq.com or 516 747 6700 x 301.
For Sale: Poughkeepsie, NY. Number of accounts 1580; Residential 30% or 471 accounts; Commercial 70% or 1109 accounts, Monitoring NET RMR approximately $50,000; RMR for Inspections $9,798, RMR for Service $17,345; Central Station Safeco and Affiliated Monitoring; Central Station monthly $15,414; Number of techs 7; Accounts are concentrated in Dutchess County NY; Equipment Honeywell Firelite Hikvision Unifi CDVIC; Panels Honeywell Firelite Silent Knight; Software Compass Silent Knight Software Suite HSS Strium Finder Napco Quick Loader. Contact Ken Kirschenbaum,Esq at 516 747 6700 301 or Ken@Kirschenbaumesq.com if serious buyer ready to close within 30 days.
For Sale: 15 Deep Sentinel accts; north of San Diego, Ca [one in La and one in Bay area]. RMR approx $5100; monitoring charges approx $1600 RMR. One year guarantee; 31 X; 20% Hold Back. Contact Ken Kirschenbaum for further info. 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Shrevesport, Louisiana over 1300 Alarm accounts; residential and commercial, over 45K RMR monitoring accounts; Kirschenbaum Contracts. mid-sized turn-key operation fully staffed with RMR and growth. Contact our attorney Ken Kirschenbaum,Esq for details. Ken@Kirschenbaumesq.com or 516 747 6700 x 301 ***************************** STANDARD FORMS 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
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