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Davis Marketing Group represents seller as Alarm Detection increases account base by over 2,000
April 17, 2005, Long Grove, IL — Comstar, Inc., formerly headed up by industry veteran, Jim Greco and his son, Tim, have sold the assets of the corporation to Alarm Detection Systems, Inc. (ADS) of Aurora, IL. The transaction size has been kept confidential, but the sale was for well in excess of 2,000 accounts and represents one of the largest purchases made by ADS. A sister company to Comstar, Star Security, primarily a union installation contractor, will remain in business, and is headed up by Tim Greco.
In commenting on the sale of his business, Jim Greco had this to say: “Although the multiple we were paid was in excess of what I had hoped for, the real reason we made the decision to go to ADS was because of the obvious care and quality that I knew they would take with our customers. The way they handled the transaction and their follow up has been nothing less than first class!” Speaking for ADS, Terry Olah, Chief Financial Officer of ADS, had this to say: “When the cash flow of an acquisition is as accretive as Comstar, it represents a wonderful opportunity, one that we could not pass up.”
Pictured right, standing from left to right: Ron Davis, Connie Busby, Terry Olah. Seated from left to right: Tim Greco, Jim Greco.
Letter from Tim Greco to Ron Davis regarding Comstar account
Please accept our personal thanks for the manner in which you assisted us in representing our company (Comstar, Inc.) in our search to find an acceptable buyer for our burglar alarm business.
As you recall, our initial meeting (in late February) was one in which you acted as our consultant in reviewing the profile of our business and establishing a fair vale of its current worth. At that time we reviewed my personal expectations and determined that they were reasonable in moving forward with an offering to several potential buyers. As our broker, your diligent efforts resulted in our receiving several excellent offers from credible buyers within days. Your assistance in screening the multiple offers and negotiating the terms by interfacing with the "bidders" resulted in our receiving (and accepting) an offer which was well beyond our expectations.
In our businesses we always joke and say, "make me an offer I can't refuse." Well, the offer made was one which we couldn't refuse. Thanks to you, Ron, we consummated an agreement which met all of our goals in achieving the highest multiples possible with mutually agreeable terms with a company who is able to maintain the same standards of high quality service to our customers and conducts its business in a professional, friendly manner. We feel that all parties have won in this transaction — our customers, our employees, the excellent company acquiring Comstar and ourselves.
We thank you for your diligent efforts in representing our interests and would recommend you to anyone interested in understanding the value of their business for the purpose of either accelerating the growth of their business through acquisitions or capitalizing on the value and equity they have built up in their business over the years.
For further information contact:
Davis Marketing Group
5894 Partridge Lane
The Graybeards Advisory Board is a division of the Davis Marketing Group