Net book value (valeur nette comptable — VNC) is the accounting carrying value of an asset — original cost less accumulated depreciation and impairment charges. It reflects historical cost accounting rather than current economic or market value. In financial due diligence, significant gaps between net book value and economic value (particularly for real estate, equipment and intangibles in Swiss CO accounts) are a key area of investigation — they reveal hidden reserves that enhance economic net worth and may change the acquisition price justification.

‍

Example: a Swiss manufacturer carries production equipment at CHF 2.1 million net book value (50% depreciated over 10 years). Independent appraisal values the equipment at CHF 3.4 million economic value — a hidden reserve of CHF 1.3 million that increases the restated net asset value and supports a higher acquisition price than the book-based valuation suggests.

‍

Hectelion identifies and values gaps between net book value and economic value for every asset class in Swiss and French company valuations and due diligence.