Non-current liabilities

Non-current liabilities are obligations with settlement expected beyond 12 months — long-term bank debt, bonds, finance lease liabilities, pension obligations, deferred tax liabilities and provisions for long-term risks. In financial due diligence, they are analysed for completeness (undisclosed long-term obligations), maturity profile (refinancing risk) and covenant compliance. For the net debt bridge, long-term financial liabilities are included while long-term provisions and deferred tax liabilities require specific assessment of their debt-like nature.

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Example: a Swiss company presents non-current liabilities of CHF 12.5 million comprising: term loan CHF 8.0 million (maturity 4 years), IFRS 16 lease liabilities CHF 2.2 million and pension deficit CHF 2.3 million. All three are included as debt-like items in the net debt bridge — reducing the equity value by CHF 12.5 million from the CHF 22.0 million enterprise value, yielding CHF 9.5 million equity value after deducting current financial liabilities as well.

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Hectelion identifies and classifies all non-current liabilities with precision in every financial due diligence, ensuring no long-term obligation is omitted from the net debt bridge.