The Start of the Deal — Integrity is it's own Reward
By Ron Davis
Reprinted from Security Line, a publication of the Metropolitan Burglar and Fire Alarm Association of New York, December, 2018
Everything you want to know about buying, selling, financing, or even managing an alarm company.
t seems as though everyone in the alarm industry is interested in buying, selling or financing alarm companies. My company, DAVIS MERGERS AND ACQUISITIONS GROUP, is one of the leading brokers in the industry. We've done hundreds of transactions, and last year exceeded over hundred million dollars in transactions. We've been doing it for 20 years. The following article, as well as the articles that appear future publications, are all excerpts from the bestselling book THE START OF THE DEAL. Thousands of alarm dealers have requested this book, and many more are asking the questions that this book answers. Everything you want to know about buying, selling, financing, or even managing an alarm company is pretty much contained within the covers of this amazing book. As you start reading, you'll start to understand why. And at the end of this article, an amazing offer.
INTEGRITY IS ITS OWN REWARD
For some time now, I have been thinking about the underlying attributes of being successful at doing deals. Some might say it's having great connection. Others may talk about negotiating skills. Still others will address good sales skills, prospecting, selling, understanding contracts and so forth.
To me, the thing that separates successful brokers from those who are not so successful is the same thing that separates successful lawyers or accountants from the not so successful. It is integrity, and I think it applies to all of us in the transaction business. There are more good brokers, fortunately, than there are bad brokers. But the bad ones are still there. Same with lawyers, accountants, everyone who comes to play the transaction game.
Think about all the professional people you've known. Doctors, lawyers, accountants, veterinarians, ministers. Pick a profession. Now think about the ones that you would trust with the most important parts of your life — whether it's your family, your business or something entirely different. The thing that comes to the top is integrity. From integrity flows trust, and from trust, honesty and credibility.
When somebody asks me to recommend a banker, an accountant or anyone else, if I can use the word "integrity" in the description, that individual has my highest regard. Let me give you a couple of examples. We've had a client on the books for over five years. We've brought him dozens of opportunities, all of which met the criteria that he established for us in the beginning. Every time we brought him a new opportunity, he found reasons why it wasn't going to work. Too little money, not the right kind of buyer, not the right fit and so on.
Recently, a potential buyer asked me about this person whom we had represented (past tense). I told him we were no longer representing him. The buyer just looked at me and said, “honesty issues?” I nodded, and nothing else needed to be said.
That former client will never know all the opportunities that passed him by. That's a shame because in the beginning he had a goal that he will now likely never realize. Recently, we were concluding a transaction (or thought we were) in which the seller obviously
got cold feet. We represented him, but suddenly could not reach him by mail, telephone or computer to find out what happened. We had done a lot of work and were due a fee.
That seller was not honest with us or the potential buyer, or the lawyers and accountants who were involved. I am sad to say he would be very surprised when he is served with legal documents requesting payment. Once the word gets out that he's involved in legal proceedings. I doubt he will ever be able to use the word “integrity” in describing himself.
If you are a buyer, seller, transaction attorney or accountant,
or business brokers like us, keep in mind that whoever is sitting on the other side of the negotiating table can sense your honesty, integrity and desire to do the right thing. That can't be replaced by sleight-of-hand or anything else that is anything but honest and straightforward.
Conversely, when you work hard, do the right things and don't take the path of least resistance, those same people will recognize they are dealing with people of integrity.
In my book, that's the same as saying they are dealing with winners who can be trusted!
For over 45 years, Ron Davis has been helping alarm
dealers get more out of their businesses. Ron has authored
several books, is a featured columnist with SECURITY SALES AND INTEGRATION magazine, was in first group of Hall of Fame inductees, and is one of the industry's most sought-after speakers.
And now, the offer! Just email Ron at firstname.lastname@example.org and he will send you a signed copy of the book, THE START OF THE DEAL, at absolutely no charge. And if you have any immediate questions, just include those in the email, along with your order. We will ship it out to you, prepaid.