Business valuation: France vs Switzerland

Business valuation methodology presents distinct characteristics in France and Switzerland. In Switzerland, the practitioners' method — combining earnings value and asset-based value — is widely used by cantonal tax authorities and in succession contexts. In France, DCF and multiples approaches dominate transactional contexts. Differences in WACC (risk-free rates, size premiums), size premium conventions and applicable discounts also drive materially different value conclusions for equivalent businesses in the two jurisdictions.

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Example: a manufacturing SME with CHF 3.0 million EBITDA is valued at CHF 12.0 million under the Swiss practitioners' method (4.0x implicit multiple) — versus a range of CHF 13.5–16.5 million under French transaction multiples. This divergence reflects different market conventions, discount applications and valuation frameworks, and must be carefully managed in cross-border transactions.

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Hectelion's cross-border expertise in French and Swiss valuation standards enables clients to navigate jurisdictional differences and produce coherent valuations in both markets.