Transfer prices are a required piece of information that must be supplemented each year and which show the regulatory authority in a country that companies are paying the appropriate amount for taxes with respect to the business transactions that take place between related, cross-border entities, such as inter-company loans or centralized cash deposits (cash pooling).

The growing development of startups poses new challenges for investors who are unfamiliar with but interested in these kinds of companies. The particularities of this (now-not-so-new) kind of companies call for new valuation parameters.

KPIs allow you to identify a company’s positive and negative trends, carry out regular assessments and create a detailed business plan. These indicators and the metrics obtained are crucial when the time comes to embark on a capital-raising process and justify projections for the next stage of growth.

There is a typical sign that tells you your company is ready to be internationalized: a significant growth in new markets. For certain industries, exporting products or services to various countries can mean extremely high costs, which may render the business un-profitable. If you recognize the sign, it is necessary to evaluate whether to open a new subsidiary — but it may also mean that you have not reacted promptly enough.

As a startup grows, one of the natural steps is beginning to internationalize its operations, mainly by trying to find one of the most attractive markets to gain a strong regional position: Mexico, Brazil, Colombia, etc.