Is Your Company a High-Value Enterprise?

Amy KothariPresident & CEO

Alarm Capital AllianceApril 2, 2014

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?

Don’t wait to consider liquidity options

Start with the end in mind!

Six Keys to Building A High-Value Enterprise

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

1. Plan your growth and exit strategy

2. Monitor and manage attrition

3. Adopt and follow sound standard operating procedures

4. Make sure your accounts have valid subscriber agreements

5. Manage installation and monitoring to facilitate account transfer

6. Mitigate risk with appropriate insurance and license compliance

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

Adopt Sound Standard Operating Procedures

Maintain organized and accurate subscriber and business records

Uncover value in your company

Adopt Sound Standard Operating Procedures

Reconcile accounts with your central station monthly

Don’t let your accounts fall through the cracks.

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.

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Billing Cycles

Make Sure Accounts Have Valid Subscriber Agreements

Don’t 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.

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.

Mitigate Risk with Appropriate Insurance and License Compliance

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.

Selecting Your Business Partner

1. Plan your growth and exit strategy

2. Monitor and manage attrition

3. Adopt and follow sound standard operating procedures

4. Make sure your accounts have valid subscriber agreements

5. Manage installation and monitoring to facilitate account transfer

6. Mitigate risk with appropriate insurance and license compliance

Thank You and Discussion

• Amy Kothari – President & CEO, Alarm Capital Alliance– Read our latest blog and white papers

– www.alarmcapital.com