Century-old security company on the block


For sale, as listed in The New York Times and The Wall Street Journal: the New York Merchants Protective Co. Inc., a financially embattled New York-based alarm company that has been in the same family for about 100 years.

Interested? You have until 4 p.m. tomorrow (Sept. 2) to make an offer.

In January, Bank of America sued NYMP and its owner Wayne Wahrsager for more than $19.2 million for allegedly defaulting on a loan.

In August, a court-appointed receiver overseeing the company posted newspaper notices that it intends to sell “substantially all the assets of the company.” The notice says that the assets, which range from accounts to furniture and inventory and also intangible assets, will go to Professional Security Technologies LLC under an asset purchase agreement unless the receiver gets “higher or better” offers by tomorrow afternoon.

I'm trying to find out more about Professional Security Technologies.

How much has Professional Security Technologies offered for NYMP? I don’t know … the asset purchase agreement is available to interested buyers on request.

But in a memorandum that the receiver, attorney Ronald Friedman, filed with the court this summer, he estimates the sale of NYMP to Professional Security Technologies will realize “$6.5 million and $9.5 million depending primarily upon the volume of NYMP customers that execute contracts with [the] buyer.”

 A judge will make a final decision on whether the NYMP sale actually goes forward. The decision is slated to happen Sept. 16. Stay tuned…



If you read the court papers you will see that the sale is set to go for 16 times monthly recurring revenue. I know of multiple companies who have requested to get copies of the asset purchase agreement to make higher and better offers but Mr. Friedman refuses to give out a copy of the agreement so that anyone else can bid in. The receiver and Mr. Brady have cut some type of back room deal with Richard Rockwell to sell off the company for pennies on the dollar.

The estimate of $6.5 million to $9.5 million is also a lie. The company currently has about $200k RMR and at the 16 multiple you are looking at $3.2 million, add in some money for inventory and trucks and you're looking at a total sale price of maybe $3.5 million. Mr. Friedman over estimates the sale price in his papers so that he can attempt to get approval from the court to make this back room deal without push back from the court or Bank of America.