Net assets represent the total assets of a company minus its total liabilities — the residual value belonging to shareholders (equivalent to equity). At book value, net assets equal shareholders' equity on the balance sheet. At economic or restated values, they form the basis of the asset-based valuation method. In financial due diligence, net asset analysis identifies hidden reserves (particularly in Swiss CO accounts), off-balance-sheet obligations and asset quality issues that affect the true economic net worth of the company.

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Example: a Swiss company reports book net assets of CHF 8.5 million. Economic restatement reveals: real estate undervalued +CHF 2.2 million, machinery with hidden reserves +CHF 600,000 and unrecognised pension deficit -CHF 1.8 million. Restated economic net assets amount to CHF 9.5 million — the basis for the asset approach component in the practitioners' method valuation.

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Hectelion analyses book and economic net assets in every Swiss and French valuation, identifying all material adjustments for a fair economic picture.