random questions that make you wonder June 24, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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random questions that make you wonder
June 24,  2017
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random questions that make you wonder
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    Sometimes I get crotchety [I'm allowed to because I'm old] and provide curt responses [too often with misspellings and poor grammar].  I do want to let you all know that I do appreciate your questions and participation, without which it would be really hard to publish this forum.  Here are a few questions I got this week, that I answered privately, but thought I'd address here in a bit more detail.
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Question 1
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Ken,
    How do i go about purchase another alarm companies rmr ?  What are the steps? and What costs?
What is a good value formula to pay for rmr accts.?  Thanks again,
Sent from my iPad
Michael 
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Response
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    I can't tell if this is a fleeting interest, some random thoughts that you're considering, or if you've given this a great deal of effort and thought.  I can help you with all of these questions but you may want to retain me, as your attorney, to assist.  But here's the free version:
    To find companies to buy or acquire their RMR, you attend local alarm association meetings and nationwide shows, place ads in national magazines, post on The Alarm Exchange, call alarm industry brokers, or hang around your local ADI store and ask around.
    Once you find a company you hire a lawyer, preferably me.  I'll guide you through the process which may entail due diligence by experts, tax experts, broker in-put, bank attorneys and negotiations with seller's attorney.
    Costs?  You could have expert fees for broker, due diligence, tax advice, bank fees and bank counsel fees and transactional fees.  Or you  may not.  Your legal fees can range from $1500 to six figures.  As far as formula, the typical deal is based on RMR times a multiple.  Deals define RMR differently and there is more to the deal than the simple multiplication.  Range of multiple can be from 15 to 45, more or less.  
    When you're ready give me a call; have cc ready.  
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Question 2
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 Ken,
    Do you have a best practices/checklist  for a new alarm startup that i can use as a guide for my company.  Also What is policy when it comes on fingerprinting.
Thanks
DD
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Response
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    I don't have a check list, though I recall doing articles with check lists, lists prepared by me and also those offered by others.  You can check my website for published articles.  The website only has the last several years, not the 40 years of articles I've written.  You don't need policy on fingerprinting; you need to comply with your state license law and that will cover fingerprinting.  But here's a few very good tips:

• get contracts at www.alarmcontracts.com and don't leave home without them
• get E&O insurance from one of the brokers on The Alarm Exchange [let them know I sent you and you don't want the carriers I don't like - they'll know]
• get our company Handbook
• use an accountant that has at least one other alarm company client 
• consider Kirschenbaum & Kirschenbaum your attorneys and don't hesitate calling us

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Question 3
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Ken
    We received your Standard Form All in one contracts (they look great!) [KK note - I did not add that !!] and we aren't sure, after we get the customer to sign it, what to do.  Is that something we just store securely or is there something else companies do?
name withhheld
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Response
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    Hopefully once the customer signs the contract you will install the alarm system.  Be sure to wait the 3 days if a residential consumer.  The fully executed contract is your most valuable asset.  Keep it secure.  You can scan the entire contract and retain only the scanned version, though I'd retain the paper version also if you can.  
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Question 4
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Ken,
    Can i use my ny alarm license in the state of Florida?  We are located in LI, New York, but have a customer who recently  moved down to Florida,and would like us to install residential security, AV and Networking equipment for them in Florida.  We would monitor the system for them using a professional central station.  Is there anything else we would need to do or have?
Thank you! 
Respectfully,
D
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Response
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    Florida does not have reciprosity with other states for alarm licenses,[note: check for Georgia and Florida reciprosity - I haven't confirmed] and I am not sure if any state has reciprosity.  One thing is for sure, you can't use your NY alarm license to install or monitor alarm accounts in Florida, at least not legally.  You can get licensed or you can find a Qualifier willing to hold your license and perform all of the license holder duties.  There is a category on The Alarm Exchange for companies looking for Qualifiers and license holders looking to qualify for companies.  Be sure to use our Qualifier Agreement if you make a deal with a license holder, for your protection and the protection of the license holder.
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THE ALARM EXCHANGE

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
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