September 2020

Pennsylvania Burglar and Fire Alarm Association 2501 West 12th Street - Suite 280 • Erie, PA 16505 (800) 458-8512 PA • (814) 838-3093 • FAX (814) 838-5127 Email: Info@PBFAA.com

Summer Season Concludes, but Fall Season Kicks Off

While 2020 has been a year of twists and turns, ups and downs - some things still progress as normal, like the cool evenings and leaves changing colors - the seasons still pass according to schedule…

Also according to schedule, is the return of the PBFAA Regional Meetings and Fall Training schedules.

Kicking off the regional meeting schedule is the Northeast Region lunch meeting on September 16th @ Noon. The meeting is being held (according to all CDC and PA social distance guidelines) at Nonna Sulina's Sicilian Kitchen & Grill, 5000 Bath Pike, Bethlehem, PA. Those interested in attending should RSVP to Rachel Klinger at (rklinger@alliedcentral.com)…

For members located elsewhere in the State - the PBFAA has scheduled a “VIRTUAL” Regional Meeting on September 22 @ 12:34pm. The meeting will be held via Zoom (Pre-registration required). The meeting agenda will consist of updates from the (5) regions and state and federal industry news… The guest speaker for the meeting will be Mark Greene; Commonwealth Resources LLC presenting a webinar on Partnering with Dealers - Helping to Unlock the Equity in Your Business...

Further down the calendar is several PBFAA sponsored “VIRTUAL” Instructor Led Training Courses. The 2020 training schedule and registration details can be found inside this months issue and at PBFAA.com.

Also coming up on October 27th will be the first ever PBFAA “VIRTUAL” Annual Membership Meeting - in-cluding presentations by Stan Martin, SIAC Executive Director on the status of the Sandy Springs alarm ordi-nance legal battle, and a presentation by Kirk MacDowell, MacGuard Security Advisors (AIREF Chair), titled: “The State of your Company from an industry expert Consultant’s Perspective”.

While we may all be continuing to go through challenging times - the PBFAA continues to provide access to industry information, educational opportunities and business resources

to aid your business...

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INDUSTRY BUZZ News From Around The Electronic Life Safety & Security Industry

AlarmLegal.com Tips & legal information

to keep you updated

A CHALLENGE TO THE CONVENTIONAL WISDOM ON THE IMPACT OF DIY SYSTEMS

ON THE "HOT" ACCOUNT ACQUISITION MARKET?

DIY Systems continue to invade the traditional residential security alarm model through inex-pensive, sleek in design and easy to use and in-stall security alarm products. Moreover, companies selling DIY Systems are offering professional monitoring at a fraction of the price offered by the traditional security alarm model. Many in our Industry are concerned (and rightly so) this onslaught of competition will cause a "race to the bottom" for the costs of security alarm systems, central station monitoring, and related profits. Moreover, conventional wisdom tells us that this

"race to the bottom" concern will -- in the very near future - drive down the multiples buyers are willing to pay sellers for residential security alarm accounts (for the past several years, multiples paid by buyers for high quality, properly contract-ed, security alarm accounts has been in the 30's, and sometimes low 40's, of Recurring Monthly Revenue). HOWEVER, PERHAPS WE SHOULD SWIM UPSTREAM. GO THE OTHER WAY. CHALLENGE CONVENTIONAL WISDOM AND CONSIDER THIS ALTERNATIVE ARGUMENT: Year after year traditional security alarm compa-nies must replace thousands upon thousands of dollars of embedded attrition just to stay even! With the onslaught of the DIY Systems, the need for, and amount of, attrition replacement is only going to increase.

Replacement of this attrition by sales persons hitting the pavement in search of new accounts will continue to become more and more chal-lenging and costly, as the

Continued on Page 7

AlarmLegal.com (continued)

DIY Systems increase competition and drive down system and monitoring costs. Hence, a colorful argument can be made that future acquisition demand for high quality and properly contracted residential security alarm ac-counts will actually increase -- and not decrease -- as more and more security alarm companies look to replace attrition through acquisitions and, in doing so, battle to buy the high-quality acquisi-tion targets. Conventional wisdom tells us these imbalances of supply and demand (i.e., more buyers than sellers high-quality acquisition targets) will drive up the multiples paid to sellers for high quality, properly contracted, RMR. MICHAEL J. REVNESS, ESQ., is the founder

of AlarmLegal.com, an affiliate at the law firm of KURTZ & REVNESS, P.C. , and dedicates his legal practice to the life/safety industry -- from drafting industry con-tracts to mergers and acquisitions, from tradi-tional security to DIY, from employment to litigation, from regulato-ry and licensing issues to your day-in and day-

out legal needs in our life/safety industry. Michael may be reached via e-mail at mrevness@kandrlaw.com, or by telephone at 610-688-2855. This article is for information purposes only and does not constitute, and should not be

relied upon as, legal advice.

Continued from Page 6 INDUSTRY SCHEDULE

OF EVENTS

PBFAA STATE MEETINGS & EVENTS

2020 State Board of Directors Meetings • September 15 October 20 • December - TBD

2020 Regional Meetings • “Virtual” Regional Meetings

September 22 November 17 (tentative)

• Northeast Regional Meetings September 16 October 14 November 11

2020 Annual Membership Meeting (VIRTUAL) • October 27 @ 1:00pm

2021 Annual Expo & Membership Meeting • May 11-12 – Holiday Inn Grantville

ASSOCIATE MEMBER EVENTS

Visit www.ADIGlobal.us for branch and other events. =========================================== Visit www.Alarmax.com for branch and other events. =========================================== Visit www.Anixter.com for branch and other events. ===========================================

INDUSTRY MEETINGS & EVENTS

• ISC West, Virtual October 5-7, 2020 NEW DATE www.ISCWest.com

• ISC East, Virtual November 18, 2020 www.ISCEast.com

• ISC West 2021 (Las Vegas) March 23-26, 2021

• ESX 2021, Louisville, KY June 15-18, 2021

• NFPA Conference & Expo 2021 (Las Vegas) June 22-25, 2021

Your Family Business – Today and Beyond

Prior to COVID – 19 there were approximately 5.5 million family

owned businesses making up about 57% of the GDP and em-

ploying about 63% of the workforce. A family-owned business

may be defined as any business in which two or more family

members are involved and most ownership or control lies with-

in a family. Only about 30% of business make it to the second

generation and only about 10% of those make it to the third

generation according to statistics. But family businesses also

face a unique set of management challenges stemming from

the overlap of family and business issues. How can you avoid

some of that overlap and build a business for long-term? Let

me give you a few tips to enhance your success.

Probably the number one reason all businesses fail especially

family businesses is the lack of long-term planning and ade-

quate succession planning. All businesses need to plan and

have a succession plan in place, but very few do and probably

more important in family companies. Family owned businesses

need to make sure that future generations have the skill sets,

the desire, and motivation to become involved and carry on the

family business tradition. If they do start them working in the

business early and get them the right education needed to con-

tinue the business. If they don’t, making them employees or

stakeholders in the business without those characteristics will

not bode well for sustainability. If family members want to be

part of the business hire and train them as you would any other

employee. Systems run the business the right people must run

the systems.

Communication is critical in every business, but even more so in

family businesses due to the family dynamic and the conflicts

that can arise. Without open and honest communication there

is the potential for increased frustrations and perceived family

entitlements. Communicate openly and honestly with all em-

ployees be they family members or not as all employees need

to be treated equally. Avoid the family employees versus the

non-family employee dilemma that can arise and add unneces-

sary tension. Separate business and family issues. That can be

difficult to do but needs to be done as much as possible. Re-

member the business is what supports everyone. As Michael

Corleone says in The Godfather; “Nothing personal Sonny,

strictly business”.

Conflicts in a family business can be three-fold, the business

issues, family issues, and ownership issues. Issues in one area

easily bleed into other areas and the conflict becomes height-

ened. Family doesn’t always come first which may be difficult

for certain family members to accept. Continued on Page 9

Do not confuse business decisions

with family decisions. Business deci-

sions should come first as all family members make or could

make some sort of living off the business. Consensus needs to

be reached quickly and if it can’t be done internally then seek

outside help to solve the problem. Perhaps you need to build

an outside advisory group and have regular meetings with

agendas to have the appropriate discussions to build consensus

about resolving issues and moving the business forward.

Accurate financial records are important. Keep accurate books

and share them with appropriate family members. Family

members that are not involved in the family business or are not

stakeholders in the business do not need to see financial state-

ments. Make sure succeeding generations understand how

important finances are and how they are the scoreboard for

running the company. Lack of financial education and under-

standing leads to the downfall of many family businesses. No

family members on the payroll unless they are actively em-

ployed or contributing to the company success in some capaci-

ty.

As stated in the first paragraph planning is key not only for suc-

cess today but in the future. When it comes to succession plan-

ning it is more imperative in family owned businesses than in

Continued from Page 8 most other publicly held businesses. Think about who is part of

the family business now and who has the potential to be part of

it in the future. Groom those that want to be involved to take

leadership roles. If no one does then before closing the doors

look at non-family employees who may want to carry on the

tradition or even hire from outside prior to closing or selling.

Handing off leadership is key, make sure they have the skill sets

and the business’s best interest in their plan. Get appropriate

legal advice for exit planning and make sure all key agreements

are in place and all key people are covered.

Remember communication and vision may be different be-

tween generations but the vision of the company is the guiding

light for long term success.

About the Author:

Bill Skinner is a business advisor/coach and speaker with Para-

mount Business Development, Inc. Author of Sales Magic 12

Steps to Achieve Massive Sales Growth and co-author of Succes-

sion Planning for the Rest of Us and Becoming the Employer of

Choice with partner Rick Munson. All books are available on

Amazon.

www.paramountbusinessdevelopment.com

THANKS to the Bellringer “Sponsors”

Alarm Telecommunications Center 800-444-2892

Allied Central Services 800-304-0834

COPS Monitoring 800-367-2677

ESA National Training School

Napco Security Group 800-645-9445

Rapid Response Monitoring 800-558-7767

Security America RPG 866-315-3838

Security Industry Alarm Coalition (SIAC) 972-377-9401

Stanley Security (SentryNet) 800-932-3304

Please Support Those Who Support PBFAA...

SIAC continues to support the Georgia Electronic Life Safety & Systems Association (GLESSA), A-Com Security Co. LLM and Safecom Security Solutions in their petition challenging Sandy Springs, GA alarm ordinance. The ordinance holds alarm companies liable for their cus-tomers’ false alarms. The plaintiffs (GLESSA, A-Com and Safecom) seek a rehearing before all of the judges on the 11th Circuit (what’s known as an “en banc” hearing). The Case Raises a Potential Concern for all Businesses (SIAC Executive Director Stan Martin issued the following statement in response to the new filing.) This case raises an issue that potentially could impact nu-merous businesses. The ruling makes it far too easy for a government entity to hold a business responsible for the actions of its customers even if the business does not have a responsible relationship with the customer’s con-duct. What is more significant to Sandy Springs taxpayers is that the city has embarked on expensive and needless litiga-

tion even though there has never been a showing that fining alarm companies is any more effective than fining alarm owners, which is the norm throughout the country. The city could have achieved its goal of reducing alarm responses without expensive litigation. SIAC continues working closely with law enforcement agencies throughout the country to promote the model ordinance it helped create in partnership with leaders in the law enforcement community. When you consider that the cost of fighting a single bad ordinance can easily run into the six figures, sup-porting SIAC’s work at the local and national level remains a wise investment. Extreme proposals such as passing customer fines to the alarm companies for payment will be vigorously opposed. We do support stopping response or requiring verification for law enforcement dispatch when applied only to chron-ic abusers.

SIAC’s Statement on Sandy Springs

Pennsylvania Burglar and Fire Alarm Association 2501 West 12th Street Suite 280 Erie, PA 16505

UPCOMING MEMBERSHIP MEETINGS

• September 16 - Northeast Region

Lunch Meeting @ Noon

• September 22 - “VIRTUAL” Regional Meeting @ 12:34pm Speaker: Mark Greene;

Commonwealth Resources LLC

• October 27 - “VIRTUAL” Annual

Membership Meeting @ 1:00pm

See INSIDE or visit PBFAA.com for details on the above meetings...