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What's your RMR ?
October 17, 2020
What's your RMR  
            What's your RMR is probably the first and most important question a potential buyer is going to ask.  Even before the potential buyer asks, any professional you turn to for assistance selling, or readying your alarm business for selling, is going to ask that question.  Do you have the answer?
            A potential client called me about selling.  They didn't have a buyer and selling is only a concept at this point.  So I asked what the RMR was so I could determine the size of the possible deal.  The client has an immediate and precise answer; let's call it 10K RMR.  I began to question the alarm company owner about the RMR and eventually asked to see a few contracts that had actually been signed by subscribers.  All contracts used by this alarm company were Kirschenbaum Contracts ™ so I was familiar with the forms.  
            So here is what I found out.  The repair service was indeed "per call", though the hourly rate was stated.  On the Commercial Fire All in One contracts the Inspection charge was an annual charge.  The alarm company owner didn't consider the inspection charges to be RMR; but they are RMR.  Even charges that are not billed monthly are considered RMR, you just calculate the charge as if monthly.  An annual charge is divided by 12 months to get the RMR number.  
            Turns out the RMR wasn't 10K, it was 12K, a 20% increase.  
            Had the per call repair service charge been a recurring charge that too would have increased the RMR.  
            Having gotten that tidbit of information from me for free the alarm company owner no doubt thinks they are ready to do a deal on their own.  That would be another mistake.
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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