How does an alarm company verify that the accounts it is purchasing were properly designed and installed? Traditionally purchasers have been relying on the seller's representations in the asset and purchase agreement of the transaction, financial records of the reported monthly recurring revenue (MRR) and sometimes a visit is performed to a small sampling of the seller's accounts.
Unfortunately, this may not be enough. To attempt to focus on the potential for fraud, new techniques need to be employed by buyers of alarm accounts because in some case sellers representations are not factually accurate and the results to the buyer can be disastrous.
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