In business valuation and financial due diligence, "normalised" refers to financial figures restated to remove the effect of non-recurring, exceptional or non-arm's length items, to produce metrics representative of the company's underlying, recurring economic performance. Normalisation applies to EBITDA (to produce a "normalised EBITDA"), margins, working capital, cash flows and capital expenditure. The normalisation process is the central objective of the quality of earnings review — its conclusions directly determine the valuation multiple base and the working capital reference in price adjustment mechanisms.

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Example: a Swiss company reports accounting EBITDA of CHF 2.7 million. After normalisation — adding back CHF 180,000 of non-recurring restructuring costs, CHF 200,000 above-market shareholder remuneration and deducting CHF 120,000 of below-market intragroup rent — normalised EBITDA is CHF 2.96 million. Applied at an 8x multiple, this CHF 260,000 normalisation difference generates a CHF 2.1 million higher acquisition price.

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Hectelion conducts rigorous normalisation analyses in every valuation and due diligence mandate, with each adjustment individually documented and justified.