Central Stations: Why They May Not Be The Best Allies When It Comes to Selling Your Alarm Business

Alarm company owner's finance calculations when selling business with a central station

Negotiating the sale of an alarm company is a big project. If you’re an alarm company owner who is considering putting your business on the market in the near future, you’re likely facing an important decision: who to work with when negotiating the sale of the successful organization you’ve worked so hard to build.

For many alarm company owners, there are two main players in the discussion of who to rely on when it comes to negotiating fair terms and selling your business for maximum profit: lawyers and alarm company brokers.

But there is a third player in the mix for some alarm company owners – central stations – making the decision of who to work with just a bit more complicated.

What Central Stations Have to Offer When It Comes to Alarm Company Sales

It can be tempting to work closely with a central station when you are selling your alarm company for a couple of reasons.

Firstly, central stations likely have a variety of companies working with them that have the potential to be interested buyers for your company.

Secondly, connecting with a buyer that uses the same central station you are currently affiliated with can seem like a particularly convenient option because it eliminates the need to change central stations.

Though these two factors may compel you to work with a central station to sell your alarm business, there are numerous other important factors you should be aware of that may convince you otherwise when you’re considering your options.

3 Reasons Why Central Stations Might Not Be The Best Partners When Selling Your Alarm Company

If you are considering working with a central station to sell your alarm business, there are numerous reasons why you might want to reconsider. Here are three notable factors that make central stations a less-than-ideal choice when it comes to finding a partner to negotiate the sale of your company.

1. Most Central Stations Are Looking to Prevent Loss of Accounts

While central stations may have access to potential buyers and may be able to provide you with leads on individuals interested in acquiring your alarm company, their involvement may also introduce a conflict of interest. While lawyers and alarm company brokers have your best interests in mind, central stations may be interested in having you sell to one of their other clients because they don’t want to lose business.

Instead of helping you find a buyer who will pay top dollar for your company or helping you negotiate favorable terms of sale, they may be more interested in preventing the loss of their own accounts.

This conflict of interest makes selling an alarm business with the help of a central station a bit complicated.

2. Central Stations Are Not Experienced in Handling Alarm Company Sales

While alarm company brokers are well versed in negotiating alarm sales and acquisitions and lawyers are familiar with facilitating business transactions, central stations specialize in providing monitoring services for burglar, fire, residential and commercial alarm systems.

They may be good at what they do – but they don’t necessarily have the relevant experience necessary to ensure your business sells for maximum profit.

3. Changing Central Stations Doesn’t Have to Impact Your Profits

Though changing central stations may seem like an inconvenience that may ultimately impact the profitability of the sale, in many instances this is not the case. An experienced broker-lawyer team can make sure that central station related cancellations and any associated costs are not the responsibility of the seller.

The sale agreement can include a clause that states that the seller should not be penalized should a central station change occur following the transaction. It can also include a statement indicating that central station cancellations are not subject to holdbacks. As a result, working with a central station to find a buyer is not actually as convenient or beneficial as it might initially appear to be.

Sell Smart: Get The Help You Need When Negotiating the Sale of Your Alarm Business

When the time comes to sell your alarm business, be sure you have the right allies on your side. Most likely, central stations, lawyers and alarm company brokers will all be involved in the transaction. However, if you want your sale to be smooth, successful and profitable, the most important thing is that all parties involved stick to their respective specialties.

For individuals ultimately planning to sell their alarm business, whether it be tomorrow or a ways down the road, now is the time to become more informed about your options when it comes to finding qualified buyers as well as partners to stand beside you during the negotiation and sale process. Check out the following resources for additional information that may help you decide which direction is best for your company:

To Sell Or Not To Sell: When to Sell Your Security Alarm Business [Free Downloadable EBook] – Gain access to Rory’s professional insight to help you decide how to sell for the right price at the right time. 

Broker vs. Lawyer: What’s the Better Option When Negotiating the Sale of An Alarm Company – Find out who is truly the better ally when it comes to selling a business in the security industry.

How To Find Buyers for Your Alarm Business – Learn about different strategies to utilize when it comes to finding well qualified buyers who are willing to pay top dollar for your company.

Questions to Ask Alarm Company Buyers: Determining If Interested Buyers are Qualified – Browse this list of questions as you develop your interview plan for vetting potential buyers for your alarm company.

Still not sure what your best option is, but know you want to get the most out of the sale of your alarm company sale? Give Rory Russell of Acquisition & Funding Services a call.

As an alarm company broker with decades of experience, Rory has valuable industry knowledge that will benefit you when it comes to selling your alarm business. He can guide you through the sale process personally, or direct you to someone else that can assist you.

Call Rory anytime at on his personal cell at (800) 354-3863, or contact him online here to learn more.