E285: How to Sell a Business in Puerto Rico (Without Losing Your Mind or Millions)

Seller psychology is everything – If the seller doesn’t have a clear “Plan B” after the sale, they may subconsciously sabotage the deal.

Pre-sale readiness is underrated – Many businesses, especially sub-$3M in revenue, don’t keep formal books. That can make them unsellable.

Quality of earnings is make or break – A clean, reliable QofE builds trust fast. Sloppy books erode it instantly.

Working capital traps are real – Mismanaging receivables, payables, or inventory can silently kill your valuation.

Puerto Rico adds complexity – Buyers need local counsel due to differences in labor law, taxes, and asset/stock sale implications.

Culture matters more than projections – Uriarte advises buyers to prioritize growth culture over growth forecasts.

Trust beats valuation – The highest bid doesn’t always win. Preparedness, transparency, and trust often close the deal.

Rep and warranty insurance is rare but growing – It's underutilized in smaller deals, but that’s beginning to change.