The asset-based method (or patrimony approach) determines the value of a company by reference to the fair value of its net assets — restating assets and liabilities to market values rather than historical book values. It is particularly relevant for holding companies, asset-intensive businesses, real estate groups and companies in liquidation. In Swiss practice, the practitioners' method combines the asset-based value (Substanzwert) with the earnings value (Ertragswert) in a 1/3-2/3 weighting. The asset-based method is also the starting point for multi-method valuations and provides a floor value benchmark for acquisition negotiations.

‍

Example: a Swiss family holding company with industrial participations presents statutory net assets of CHF 12.0 million. After revaluing real estate (+CHF 2.8 million), marking participations to fair value (+CHF 1.5 million) and writing down an impaired investment (-CHF 400,000), the adjusted net asset value is CHF 15.9 million — the floor value retained in the family succession valuation.

‍

Hectelion uses the asset-based method as a systematic valuation anchor in every transaction, providing a robust floor value alongside income-based approaches.