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Don't Lie and Other Rules from a Seasoned M&A Advisor
What you missed on How2Exit This week
Ronald Skelton
June 24, 2025
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E285: How to Sell a Business in Puerto Rico (Without Losing Your Mind or Millions) -
About the Guest:
Francisco Uriarte is Managing Partner at Connelly Capital, a Puerto Rico-based M&A advisory firm. With over 60 transactions completed and $800 million in closed deals, Uriarte combines operational experience as a former business owner with a deep understanding of sell-side representation, especially in the unique legal and cultural context of Puerto Rico. His firm operates across Latin America and the continental U.S., but remains rooted in his home market, guiding business owners through one of the most emotional and financially significant decisions of their lives.
Summary:
Francisco Uriarte didn’t plan on becoming a mergers and acquisitions advisor—he lived it first. From running a cheese factory to building a supermarket chain, his hands-on entrepreneurial background shaped how he approaches dealmaking in Puerto Rico today. In this episode of How2Exit, Francisco takes us behind the curtain of buying and selling businesses in a unique legal and cultural environment. His firm, Connelly Capital, has completed over $800 million in transactions, specializing in helping sellers prepare the right way—mentally, financially, and operationally.
Uriarte’s experience-based wisdom turns the abstract into the actionable. This isn’t theory. It’s field-tested insight from someone who’s sat in every seat of the table—buyer, seller, and advisor. If you’re thinking about buying in Puerto Rico or just want to better understand the human and technical nuances of closing deals, this is one of the most practical and well-rounded episodes in the series.
Key Takeaways:
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.
Article:
Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!
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Founding Member Shout-Out (Still room here -$400 one time)
Shout out to our new founding member. With over 30 years in M&A, this company offers the lowest priced (way undervalued) course on helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.
