Transforming Your Company

into a High-Value Business

Electronic Security Technology
Summit

Amy Kothari
President & CEO
Alarm Capital Alliance
October 17, 2013

Are You Ready?

Is your plan in place and executable?
If you decide to sell some accounts, take cash out of your business,
or exit your business, are you able to do so?
Do you know how to find the right buyer?
Do you know what kind of information the buyer will require?
Would you be able to provide this information quickly and easily?
Dont wait to consider liquidity options
Start with the end in mind!

Envision Your Goals Maximize Your Value

Meet our clients

Harold

Susan

Larry
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Envision Your Goals Maximize Your Value

They each have a different plan

Wants to retire

Wants to partially sell Wants a partner

Six Keys to Building a HighValue Business

Regardless of your plan, strategic companies start planning from day one

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Plan your growth and exit strategy

Monitor and manage attrition
Adopt and follow sound standard operating procedures
Make sure your accounts have valid subscriber agreements
Manage installation and monitoring to facilitate account transfer
Mitigate risk with the right type and amount of insurance

Plan Your Growth and Exit Strategy

A strategic end-game is the first key to success
Short and long term goals, business and personal
Steps to reach those goals
Challenges you anticipate along the way
Tentative timeframe

Monitor and Manage Attrition

Running your operations smoothly is essential

Attrition Rate Calculation

Adopt Sound Standard Operating Procedures

Maintain organized and accurate subscriber and business records

Uncover value in your company

9

Adopt Sound Standard Operating Procedures

Reconcile accounts with your central station monthly

Dont let your accounts fall through the cracks.

10

Adopt Sound Standard Operating Procedures

Adopt and follow sound billing and collections practices

While many companies

bill their subscribers
annually, this can cause
cash-flow problems and
make it difficult to
establish consistent
subscriber payment
histories an important
factor to potential buyers.

Billing Cycles

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Make Sure Accounts Have Valid Subscriber Agreements

Dont rely on a handshake.

. . valid and enforceable
subscriber agreements not
only help establish your
qualified account base,
they are critical to
protecting both your
company and a potential
buyer before, during,
and after the sale.

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Manage Installation & Monitoring to Facilitate Account Transfer

The more difficult it is for a buyer to transfer and integrate your
accounts into its monitoring station, the less the buyer will be
willing to pay for those accounts.

13

Mitigate Risk with the Right Type & Amount of Insurance

Potential buyers not only look for the key elements that make
your accounts a good investment, but also whether you would be
a sound business partner.

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Selecting Your Business Partner

15

Thank You and Discussion