Business Valuation

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​​In Puerto Rico’s business environment—where U.S. legal standards intersect with unique tax regimes, limited market scale, and heightened exposure to external economic and environmental factors—understanding the true economic value of a business is crucial. Whether you are planning to sell your business, planning a merger or acquisition, addressing tax or estate matters, resolving legal disputes such as divorces, securing financing, or making strategic decisions, a well-supported business valuation is critical.

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Business valuation is a disciplined and systematic process used to determine the economic value of a company. It involves a detailed analysis of financial performance, assets and liabilities, cash flow sustainability, market position, industry conditions, and risk factors specific to Puerto Rico. The result is a comprehensive valuation report that provides a clear, objective, and defensible assessment of a company’s worth.​​

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In Puerto Rico, many businesses are privately held, family-owned, or closely tied to owner-operators. As a result, valuation requires not only technical expertise, but also a deep understanding of local market dynamics, regulatory considerations, and business practices. A professional valuation helps business owners and decision-makers negotiate effectively a Purchase-Sale Price, plan confidently, and protect the Enterprise Value.

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​When Is a Business Valuation Needed?

A business valuation may be required in a wide range of situations, including:

• Mergers and acquisitions (buy-side or sell-side)

• SBA and bank financing

• Shareholder buyouts and ownership restructurings

• Divorce and shareholder disputes

• Estate, gift, and succession planning

• Financial reporting, strategic planning, and compliance

Banks, investors, attorneys, and tax advisors in Puerto Rico regularly rely on independent valuation reports to support informed and defensible decisions.

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​​​Our Valuation Approach

Our business valuation services include a comprehensive review of all key value drivers, such as:

• The company’s business model and sources of sustainable profitability

• Historical financial statements and forward-looking financial forecast

• Capital expenditures, leverage, and working capital needs

• Industry trends and local market conditions

• Intangible assets, including brand value, customer relationships, and tax incentives

• Business-specific risks

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We apply generally accepted valuation methodologies—income, market, and asset-based approaches—tailored to the Puerto Rico business environment to ensure accurate and unbiased conclusions.

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Trusted, Independent, and Defensible Valuations

Our work combines local market knowledge, rigorous financial modeling, and transparent reporting to support a broad range of needs, including transaction advisory, SBA-guaranteed lending, litigation support, and strategic decision-making. Our valuation opinions are relied upon by business owners, CPAs, attorneys, financial institutions, and investors throughout Puerto Rico.

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At businessvaluationpr.com, our objective is simple: to deliver precise, independent, and defensible business valuations that give you clarity, confidence, and a solid solid foundation for your next decision.nation for your next decision.

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Transfer Pricing​​

Transfer pricing refers to the pricing of goods, services, or intellectual property exchanged between related companies under common control that operate in different tax jurisdictions. These intercompany transactions must be priced in accordance with the arm’s length standard, meaning the terms should be consistent with those that would apply between independent parties under comparable circumstances.

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For example, when a related entity in the continental United States provides goods or services to an affiliated company operating in Puerto Rico, the price charged—known as the transfer price—must be properly supported and defensible from a tax perspective.

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In Puerto Rico, companies seeking to fully deduct intercompany charges paid to related parties outside the Island must meet specific compliance requirements. In general, this includes:

• Maintaining a contemporaneous transfer pricing study that supports the arm’s length nature of the intercompany transactions, and

• Properly completing and filing Form SC-6175 with the Puerto Rico corporate income tax return.

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​Failure to meet these requirements may result in the partial or full disallowance of intercompany expense deductions and potential tax exposure.

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​Litigation Support​

We have assisted clients and their legal counsel in division of community property, estate valuation, loss profits calculation, among others, in civil cases. We have extensive experience in implementing generally accepted methodologies plus our business saavines to make defendable calculations and reports.

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Contact us to schedule a virtual consultation or presentation to learn more about our transfer pricing services, discuss your specific intercompany transactions, and get clear answers to your questions.