Net assets (equity) is the balance sheet measure of shareholders' equity — the accounting value of the owners' stake in the business after all liabilities are deducted from total assets. It comprises paid-in capital, share premium, legal and voluntary reserves, retained earnings and OCI reserves. In business valuation, book equity rarely equals economic value — particularly for Swiss CO companies where the prudence principle allows significant understatement of asset values. The gap between book equity and economic value (hidden reserves, intangible value) is a key focus of every due diligence.

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Example: a Swiss industrial company reports book equity of CHF 6.0 million. After revaluing real estate (+CHF 2.5 million), deducting unrecognised pension liabilities (-CHF 1.2 million) and recognising previously unbooked intangibles (+CHF 1.8 million), the economic net assets amount to CHF 9.1 million — a 52% premium over book value, illustrating the gap between CO accounting and economic reality.

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Hectelion bridges book equity to economic net assets in every Swiss acquisition due diligence, ensuring acquirers understand the true economic balance sheet.