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.
Other posts that might interest you
RMR in the security industry up to a 6% CAGR since 2012
Quote: “We’ve rebounded nicely since 2012, which was when the recession kind of ended for the industry” The 21st annual Barnes Buchanan Conference — which aligns the security alarm industry…
July 12, 2016
Dealer Playbook with a specific focus on three areas: Sales, Technical, and Executive
By Austen Trimble, VP of Sales in North America In my three years at Eagle Eye Networks, a lot has changed. Our customer base has grown, our staff has grown,…
April 9, 2018
SDM Magazine Evangelizes RMR as the Key to Value
Company Valuations for Systems Integrators: RR, Tech, Vertical Mkts, All Affect Value – SDM (Jan 2011) - Much has been written about how security dealers, with their profit-rich recurring monthly…
January 24, 2014