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MORE ON SELLING YOUR ALARM COMPANY FROM FEB 24 2016 ARTICLE
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Ken
On the topic of Preparing Your Alarm Company For Sale, whether you plan to sell your alarm company years down the road or you hope to put your business on the market tomorrow, here are 3 key steps for preparing your alarm company for sale:
- 1. Keep Everything Up To Date
- While maintaining current customer contracts and accurate financial records is always best business practice, it is also very important when it comes to preparing your security alarm company for sale. Keeping your contracts and other business records current helps you to promptly address any issues or weaknesses that may undermine the value of your company in the eyes of a buyer. It helps you to operate and maintain a successful alarm company while showing potential buyers that you’re a reliable, trustworthy seller when it comes time to sell.
- 2. Stay in Touch with Industry Trends
- Selling your alarm business at the appropriate time is imperative if you want to maximize the profits generated by the sale. Keeping an eye on market and industry trends is key to selling at the right time for the right price.
- 3. Work With An Alarm Company Broker
- There are a variety of benefits to working with an alarm company broker to sell your alarm company – but there are additional benefits you can glean from consulting with a broker before initiating the selling process. Alarm company brokers can share insider insight into the security alarm industry and can provide you with a thorough and accurate valuation of your company before you even put your alarm company on the market. Working with a broker as you prepare your alarm company for sale can ultimately help you to navigate a smooth sale resulting in significant profit.
Being well prepared and having your company well positioned even before you put it on the market can make a huge difference when it comes to negotiating a profitable sale. These 3 tips will help you ensure that your alarm business is prepared to sell for the right price at the right time.
Rory Russell
www.AFSSmartFunding.com
(518) 656-9268
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RESPONSE
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The All in One forms are up to date. If you aren't using copyright 2016 forms then you should consider updating. If you have copyright 2012 form, or one from even earlier, you should update, today. If you have 2013 through early 2015 it's good idea to update because there have been revisions. Call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for the good or bad news on updating !!!!!
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Ken
Following up on Jennifer's article on February 24, 2016, re-: 'selling or thinking of selling'.
Have a huge dilemma. We've been toying with the idea of selling sometime in the future. However, I've been told because of the type of corporate entity we have we are screwed!
Probably 20+years ago we incorporated as a C Corp. Because of the double tax consequences on the sale of a C Corp. it's almost not worth even to sell. I've counseled with some of the brokers in the industry and they told me to try to convert a C Corp. to an S Corp.(to avoid the double tax) now can take up to 10 years.
What do we do so Uncle Sam doesn't double dip and and make this exercise futile????
Thanks
name withheld
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RESPONSE BY KK
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Bad choice. Sub chapter S election has pass through tax treatment. Best to defer to Mitch Reitman on this one, but, give me a call [516 747 6700 x 301] and we may be able to figure something out.
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MORE ON LEASING FIRE SYSTEMS FROM FEB 24 2016 ARTICLE
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Ken,
Based upon Mr. Kleinmans analogy that you are providing a service, then how can you sue for liquidated damages or the balance of the agreement if the subscriber decides to stop the services? There would be no loss if you were no longer providing such services, right? Will the next argument be based on anticipating profits from the relationship for the extent of the agreement or to recoup the installation costs that was done at a loss? How is this any different than a service agreement based upon services that you will be providing but have not done so yet?
On the subject of insurance company requirements and premium benefits to the building owners, that is more of a thing of the past. ISO plays a much smaller role in ratings now than before. Insurance companies have taken over the reins and make their own decisions subject to their own or contracted investigators that include other concerns as well and not just the monitoring of the fire sprinkler system. You and others may be surprised on how little they will credit a fire insurance policy or even require central station monitoring unlike in the past that it was a standard requirement. I have experienced this on many occasions in order to sell this service only to be told by the potential customer, his agent and/or the insurance company itself that it has little effect on the premiums and not enough to offset the cost of the monitoring. Voluntary fire sprinkler monitoring service? He lead us to believe that they were not required to meet any codes and that was not correct as you just stated.
Lastly, so you know who I am and what does that prove? I only comment on the posting that you had Ken put up and then followed criticizing how he handled the situation. Don’t shoot the messenger here. If you did not want or expect comments why post anything in the first place. This is what a blog is, correct? I am sure you will have an opportunity to comment on something in the future that I post now that you know who I am. By the way, I did not see any comments on the asbestos issue. Was that something better left alone than to acknowledge that I can be a concern? Regardless, no ill will is intended here just straight talk whether you agree or disagree with some or all of the comments.
Yours truly,
“Now known to a few” and formally “Right to the point”
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T