Address: Ste. 1103, Union Plaza Bldg., No. 416 Ponce De León Ave., San Juan, Puerto Rico 00918
Opening Hours: 24/7
Phone:  (787)-230-0820
               (787) 370-1894

Puerto Rico Appraisers' Services


Business valuation professionals have come a long way since the IRS Revenue Ruling 59-60, considered the cornerstone of business valuation and particularly since the 80’s after many books have been authored by recognized experts and published and updated to serve as texts and reference in the field of business valuation. The courts and the IRS have become more knowledgeable on the subject. When valuing a business interest, we consider the form of ownership and whether it is the invested capital (debt and equity), or the equity participation.

Commonly valued interests

  1. Invested capital (debt and equity)
  2. Equity
    1. Controlling interests, as an example > 50%
    2. Majority interest in a non-controlling formation, as an example 30%, 20%, 20%
    3. Minority interest, as an example < 50%
    4. Minority interest in a controlling formation, as an example 2%, 49%, 49%

Commonly applied discounts

  1. Discount for lack of marketability (DLOM)
  2. Discount for lack of control (DLOC)
  3. Key person discount

Business valuation has its complexities. The basic documentation for analysis include tax returns and financial statements for the last years of operation, preferable the last five (5). Additional documents would be specified by the analysts/valuator and would vary depending on the type of business interest being valued, intended user(s) and intended use of the valuation report.

Professional organizations such as the American Society of Appraisers (ASA), the National Association of Business Analysts (NACVA), the International Society of Business Appraisers (ISBA), The Institute of Business Appraisers (IBA), and the American Institute of Certified Public Accountants (AICPA) are the foremost accredited organizations that certify business appraisers. Business appraisal requires mastering the fundamentals of accounting and finance as well as the valuation methodology. As with the other appraisal disciplines, appraisal is both a science and an art. However, the appraiser or analyst/valuator must render a complete, relevant, reliable, impartial, unbiased, and credible supportable opinion of value. This is much easier said than done. Every appraisal is unique. Reason why you should only engage a certified professional business appraiser.

Diego Sorroche Fraticelli, MBA/Acc., BCA, ABAR, CMEA, CDEI, MIE; principal appraiser/valuator and owner of Puerto Rico Appraisers & Consultants is a Certified Business Appraiser and accredited in Business Appraisal Review, a certified member of NACVA and the ISBA, with more than 20 years of continued business, personal property (M & A), and real estate appraisal/valuation practice in Puerto Rico. Our valuations/appraisals are performed in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), and specifically Standards 9 and 10 applicable to business valuation; with the Code of Ethics of NACVA, the ISBA, the Institute of Professional Valuators of Puerto Rico (IEPPR), as well as with the applicable laws and regulations applicable to the appraisal profession in Puerto Rico.

For free consultation, call on us at Puerto Rico Appraisers & ConsultantsTM, or visit our website at for your business valuation needs!