Quote: “Services that can be leveraged from an operating perspective, such as digital monitoring, have very high margins and are more valuable than services that require field visits such as service, maintenance and test and inspection services”
Recurring monthly revenue (RMR) is a fickle little anomaly of the security industry. Everyone’s trying to get more, perhaps not fully understanding the ramifications of what’s involved. RMR takes into account many factors, including cash flow and margins from existing customers, creation costs, attrition, loaded labor, market proposition, competition, technology and accounting metrics. But with thorough due diligence, literally and figuratively, the security dealer and systems integrator can leverage RMR to increase company value — for financing, mergers and acquisitions, equity transactions — and simply to boost the overall health and viability of the company.
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