Here are some of the Frequently Asked Questions received by Davis Mergers & Acquisitions. If you have any additional questions or concerns, please use our contact form, send us an email or give us a call at 847-340-2555.
A: That depends on many factors, but generally the principal value is in the recurring monthly monitoring revenue (RMR) or the Ebitda. In most cases, however, the details of deal structure are as important, if not more so, than the actual purchase price. After all, it’s how much you keep that is important. We will review your business with you to provide you a ballpark of what you should expect in a sale.
A: There are multiple factors:
A: No, it is not OK for many reasons. But as far as selling your company or accounts is concerned, without contracts, there is very little value and it is very difficult, if not impossible to find a good buyer. Even if a buyer can be found, the price they will pay will be far less than if you had good contracts in place with all of your customers.
A: That will vary widely from one deal to another but in many cases, most sales people and technicians will likely be offered continued employment with the purchaser. Many purchasers will attempt to find positions for other employees, but this will depend on their skills and value to the purchaser.
A: It depends on the buyer. If a buyer is looking to open a new geographic region, they may opt to lease your current space. Most purchasers want to realize maximum efficiency of scale and combine their acquisitions into their existing offices.
A: It’s true that there are many companies actively seeking to purchase accounts. Which one will offer the best deal for you? How will you know when the highest and best offer is received? There are many factors that will affect how much you keep in the end and you need someone with experience in the sale of alarm companies to guide you through the process. Remember, most acquiring companies have done it before, sometimes many times, and they know how to structure a deal that’s best for them. But what’s best for them is probably not what’s best for you. Another thing to think about is keeping the early negotiations as confidential as possible to prevent possible employee and customer problems. The DMAG team will be able to contact as many prospects on a confidential basis without identifying your company directly, to find the best possible purchaser prospects.
A: There are a great many regional companies that combine high quality service with personalized customer care. Many are always looking for quality expansion opportunities. DMAG is in constant contact with many of these regional buyers and are ready to promote your business as an acquisition possibility. We look for the best fit between buyer and seller, and by comparing many different possibilities, we are able to find the best deal for you.
A: In general, the process is not too intrusive on the office routine. Prospective buyers will want to visit, but they can appear as prospective customers or other VIPs simply visiting the office.