Valuation Services

Privately-owned family companies make up a large proportion of businesses in Puerto Rico.  Most of the shareholders of these privately-held businesses do not have the technical "know-how" to assign a value to their company.  As a result, they face  a significant number of unique issues that relate to the personal objectives of the owners or shareholders that must be evaluated in weighing any decision.  For example, shareholders must evaluate: (i) the considerations before entering a transaction that will share or cede ownership to an unrelated third party or an insider; or (ii) whether or not making a special dividend to shareholders to diversify their equity investment away from the company is feasible, amongst others.  The following is a short list of some the questions faced by shareholders of privately-owned businesses:     

• Is the return on business greater than returns from other investment vehicles?
  

• Is the company worth more to another party than it is to the shareholders?

• Do shareholders want to commit additional capital for future growth?

• Does the company have an experienced management team capable of handling a larger business?

• Is the large size of family members affecting the conduct of the business?

• Is there a succession plan in place?

Having us by your side to assist you in preparing a comprehensive valuation of your business is key to maintain transparency and objectivity in the process.  We will assist clients in navigating the key milestones of the process to ensure outcome optimization.