hssi - what we do

SELLING SECURITY COMPANIESBUYING SECURITY COMPANIES

VALUATIONS OF SECURITY COMPANIESBUILDING DEALER PROGRAMS

who is harding security services

and what do we do?

UNLOCKING OPPORTUNITIES FOR WEALTH AND GROWTH IN THE SECURITY INDUSTRY

HSSI is a consulting firm, formed by Victor Harding, that provides acquisition, business valuation and dealer plan services to the security industry. We work across Canada and in parts of the United States. In our acquisition work, we can work for either a buyer or a seller and on deals running from a few hundred accounts to many thousands. While our valuation and dealer plan work is billed out on an hourly basis with our acquisition projects we work on a success-fee basis. We get paid a percentage of the purchase price but only if we close the deal.

• We help company owners sell their accounts or their entire business.

• For buyers, we find the accounts to buy and help the buyer close the deal.

• We value security businesses for owners, banks and other interested parties.

• We create and help develop authorized dealer programs.

HSSI PROVIDES THE FOLLOWING SERVICES:

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how can harding security services

help you sell your business?


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HSSI works for the seller from beginning to end...• HSSI explains the all the steps of the selling process to the owner.• We make sure both the company and the owner are truly ready for a sale.• We give the owner a realistic sale price and help explore the tax implications.• We then create a selling package to highlight the company’s strengths and unique qualities.• We sort through our network of contacts to find as many qualified buyers as possible. • Using confidentiality agreements to protect the seller, we get the selling package to these

qualified buyers and solicit bids.• We present the seller with as many decent bids as possible from which to choose. • From this list of bidders, we advise our client on which offer to accept and then help them get

signed a Letter of Intent from the best bid.• We are there to monitor the due diligence process being done by the prospective buyer.• We negotiate the most attractive terms to the purchase and sale agreement for the seller.• We work to make sure the deal gets done. We are paid only when the deal is complete.

CONFIDENTIALITY & CONTACTS


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• Like any profession, selling a business requires skill, years of experience and lots of contacts.• Most business owners don’t have the time, the know-how or the contacts to do a good job of

selling their own business….plus they have to run their business.• Selling a business is more complicated than selling a house. Yet most of us use an agent to sell

our house. So why would you not use an agent to sell our business?• The principal at HSSI is a a trained Chartered Accountant, has been doing acquisition deals in

the alarm industry for the last 14 years and has an extensive network of contacts.• It has been proven that by far the most important factor affecting the price that a seller gets for

their business is having multiple bidders. This is paramount!• HSSI will take the time to find several buyers - both the obvious and not so obvious buyers.• HSSI can approach buyers that the seller would not like to approach. i.e. competitors.• Aside from getting you a better price and better terms all around, HSSI will also do most of the

selling work for you.• Finally, HSSI is known for being persistent and getting the deal done.

Why use a broker to sell your business?

HARD-WORKING EFFICIENT


help you buy a business?


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HSSI finds opportunities for buyers…

KNOWLEDGABLE PERSISTENT

• Most alarm company owners, even of the very best companies, don’t know much about buying alarm accounts.

• Some owners might know how to buy but don’t have experienced man-power or the time themselves to hunt down good acquisition candidates. The hunting is mandatory.

• HSSI can provide the hunting man-power and the know-how to complete sensible deals.• To be good at buying you have to be “in the market,” stay in touch with prospects and be

ready to move. This is difficult for an owner but not for HSSI to do.• When HSSI works for a buyer, they buyer will get exclusive rights to see the deals.• It is also HSSI’s job to help negotiate the best possible deal for the buyer.• HSSI can advise the buyer on the right due diligence steps for that particular dealer.• Finally, HSSI makes it their business to ensure that the deal actually gets completed. • The buyer only pays HSSI when the deal has been closed.

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Why use a broker when buying an alarm business?

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PERSEVERANCE DETAILED

• Buying a business is a specialized field of endeavour. You are often spending a great deal of money. It pays to have some experience on your side.

• A good broker should not only help you find good deals and guide you what to pay but also do most of the persistent follow up work to get the deal done- allowing you to run your business.

• Also with HSSI, you get exclusive access to any buying opportunities that HSSI finds rather than waiting until a deal gets “shopped.”

• HSSI may be able to approach certain prospects to buy that you as an owner cannot.• Considering the risk involved in buying businesses using a broker is a small price to pay to help

ensure that you get the deal done at a good price with not much risk.


help you value your assets?


There are many reasons for a business valuation…• A partner in the business wants to sell their interest.• The company is looking for financing.• A lender wants a valuation.• The owners want to know what their company is worth

before deciding to sell.• An owner is going through a separation or divorce.• Owners have a shot-gun clause.

HSSI is capable of valuing all kinds of security assets including all types of recurring revenue, one-time revenue and other assets. This includes alarm accounts (both wholesale & retail), installation revenue, service contracts and monitoring stations. Valuations will take into account the multiples that are currently being paid, EBITDA multiples and other valuations techniques and will be done quickly and inexpensively.

INEXPENSIVE AND FAST

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help you build dealer programs?


Helping build your dealer program…

KNOWLEDGE & EXPERIENCE

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• Authorized Dealer Programs are a proven way for security companies to increase the rate of growth of their recurring monthly revenue (RMR).

• Over the last 12 years, Victor Harding has helped build two of the successful national dealer programs in Canada.

• HSSI can help you design a dealer program that is competitive in today’s market and that will attract new dealers.

• This design process could encompass the pricing structure to the customer, the payment grid for the dealer, the processes required and even some of the forms.

• Finally HSSI can also help you find you the right kind dealers to join your program.

what is harding security services’

background in the industry?


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• University educated - BA University of Toronto, MSC. London School of Economics, London England.

• Chartered Accountant (CA) by Post Graduate Training.• Fifteen years experience as a senior manager in both small

and large companies both public & private.• Worked for McKinsey & Co., one of the world’s leading

strategy and organizational consulting firms. • Bought into security alarm industry in 1994 with purchase of

Alliance Security which had a network of franchised alarm dealers with its own monitoring station.

• Sold Alliance Security to VOXCOM Inc in 1997.• Worked for VOXCOM for 6 years helping them build their

authorized dealer program and find and complete acquisitions.• Moved to Protectron in 2003 and helped them build their

authorized dealer program and do more acquisitions.• Over the 10 years at VOXCOM and Protectron, completed

over 30 acquisition deals that had more than $350,000 of recurring monthly revenue.

• Member of the Board of Canasa for the province of Ontario.

VICTOR HARDING…

“Using the services of Harding Security to sell my business not only got me a great deal but also made the whole process faster, smoother and a lot less work for me! Victor’s experience and personal efforts made a significant contribution to securing and closing our deal successfully. The fees for Harding Security Services are more than worth the investment.”

-Kenneth Craig, Bolt Security

“Victor Harding worked had on my behalf to get me the best possible deal for my accounts. In addition the deal was done quickly and easily.”

-- Gilbert Forin, All Security Ltd.

hssi - what we do

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