Business Valuation
Business valuation is the cornerstone of every strategic decision — a sale, an acquisition, a fundraising, a shareholder dispute, or a corporate reorganization.
A rigorous, defensible valuation transforms uncertainty into clarity. Hectelion delivers independent business valuations grounded in international standards (IFRS, IVS, RICS), tailored to the realities of French and Swiss SMEs and mid-market companies.
.avif)
What is a business valuation?
A business valuation is the systematic process of determining a company's economic value at a specific point in time. It combines financial analysis, market benchmarking, and forward-looking projections to estimate what the business is genuinely worth — not just what it costs.
Three families of methods are used in combination: the income approach (DCF — Discounted Cash Flow), the market approach (listed comparables and transaction multiples), and the asset-based approach (adjusted net asset value). The choice and weighting of methods depend on the company's profile, sector, growth stage, and the purpose of the valuation.
Beyond the numbers, a defensible valuation must withstand scrutiny — from buyers, auditors, courts, or tax authorities. It requires methodological rigor, documented assumptions, and a deep understanding of the company's strategic context.
Step 1
Scope of the mission
Define the purpose, context and specific objectives of the evaluation to frame the mission.
Step 2
Document collection
Gather the financial, legal and social information necessary for the analysis.
Step 3
Modeling
Apply appropriate methods to estimate the value and performance of the company.
Step 4
Preliminary report
Structure the results obtained in a clear, synthetic and reasoned document.
Step 5
Presentation of the results
Share the initial conclusions with the client and discuss the hypotheses adopted.
Step 6
Update the model
Update the template and report based on feedback and new items available.
Step 7
Final report
Finalize, validate and submit the complete report, usable in various contexts.
When and why to commission a business valuation
Business valuations are commissioned at pivotal moments — buying or selling a company, raising capital, settling shareholder disputes, planning succession, or complying with accounting and tax obligations. Each context demands a tailored methodology and the right level of evidentiary rigor.
Succession planning
Determine an objective market value to prepare a sale, an inheritance or a donation by reducing uncertainty during negotiations.
fundraiser
Align founders and investors with a well-founded, credible valuation that is consistent with the investment thesis.
Acquisition
Objectify the target value, avoid overvaluations and structure a defensible offer through a market benchmark.
Tax & legal
Justify the value in intragroup transfers, document transfer prices and limit the risks of requalification.
Strategic management
Measure value creation, adjust investments/divestitures and strengthen governance through clear indicators.
Banking relationships
Support access to credit through a structured assessment and audited financial aggregates.
Our business valuation methodology
A structured, multi-method approach to deliver valuations that withstand scrutiny.
- Define the valuation context and standard of value
We clarify the purpose of the valuation — fair market value, fair value (IFRS 13), investment value, or liquidation value — and identify the relevant valuation date, audience, and applicable standards (IVS, RICS, OPEV). - Conduct in-depth financial and operational analysis
We perform a detailed review of historical financials, normalize EBITDA, analyze working capital and capex requirements, and benchmark performance against sector peers to establish a reliable economic baseline. - Build the discounted cash flow (DCF) model
We construct multi-scenario projections, derive the appropriate discount rate (WACC) including size premium and specific risk premium, and apply terminal value methodologies aligned with sector reality and macroeconomic conditions. - Apply market and transaction multiples
We identify a panel of listed comparables and recent precedent transactions, calibrate trading and transaction multiples (EV/EBITDA, EV/Sales, P/E), and apply size and liquidity adjustments to reach market-based value indications. - Cross-check and triangulate the results
We reconcile the DCF, market, and asset-based outputs, document differences, and converge toward a defensible valuation range — supported by sensitivity analyses on key drivers. - Deliver an audit-grade valuation report
We produce a comprehensive, fully documented report meeting Big Four auditor and judicial expert standards — ready to support transactions, fundraising, audits, or litigation.
.svg)
Diverse range of clients advised
Family Offices
Executives/Management
Family shareholders
Private equity funds
Family businesses
SMES
operations analyzed
years of expertise
clients advised
Discover our TRACK RECORD
The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.
Frequently Asked Questions
We carry out valuations of companies, brands, patents, and complex financial instruments (convertible bond rates, participation certificates, etc.).
It makes it possible to determine a economic value interval realistic. Useful in case of sale, acquisition, succession, succession, litigation, litigation, fundraising, arbitration or restructuring.
We use a combination of methods:
- DCF (discounted cash flow);
- Multiples of comparable transactions;
- Multiple scholarship recipients;
- Substantial value;
- Practitioners' method;
- Other methods depending on the context (dividends, etc.)
La worthiness is a technical estimate. The prizes is the result of a negotiation. Value guides, but does not necessarily determine the final price.
It depends on the available data, the hypotheses adopted and the context. That's why we work by value interval.
No A serious assessment is based on several intersecting approaches to ensure robustness and credibility.
Yes, they are used to:
- Negotiation;
- Arbitration;
- Litigation;
- Succession;
- Taxation;
- Internal valuation.