Ad hoc arbitration is a dispute resolution procedure organised directly by the parties, without the supervision of a permanent arbitration institution. The procedural rules are either agreed between the parties or chosen from established frameworks (e.g., UNCITRAL rules). Compared to institutional arbitration (ICC, Swiss Arbitration Centre), ad hoc proceedings offer greater flexibility and potentially lower administrative costs, but require the parties to have sufficient expertise to manage the procedure effectively. In M&A, it is sometimes preferred for purely financial disputes where parties wish to appoint a specialist financial expert as sole arbitrator.

‍

Example: a SPA for a Swiss manufacturing company stipulates that any dispute on the completion accounts adjustment will be submitted to a single ad hoc arbitrator — a chartered accountant jointly appointed by the parties — under UNCITRAL rules. A CHF 850,000 working capital dispute is resolved within 5 months, at significantly lower cost than institutional arbitration.

‍

Hectelion accepts mandates as ad hoc financial arbitrator in pricing and valuation disputes between sophisticated parties.