Business valuation mandate in the context of an arbitration between shareholders
Business valuation mandate conducted as part of the determination of the economic value of the shares of a Swiss company specializing in fertility medicine and medically assisted procreation (ART).
Mandate description
Valuation mandate carried out on behalf of the seller and the purchaser jointly as part of a transactional arbitration, aimed at establishing a neutral and objective value for the company. $
The mission took place in a context of capital reorganization, following differences of opinion between shareholders on the valuation of shares.
The company, based in Switzerland, operates a medical laboratory and a fertility center recognized for its scientific and technological expertise in the field of assisted reproduction.
The objective of the valuation was to determine the fair economic value of the company, taking into account both its profitability, its recent medical investments and the sensitivity of its regulated business.
Key issues
The main challenges consisted of:
- Guarantee a total neutrality as part of a mission mandated by both the seller and the purchaser;
- Reconciling diverging interests while maintaining a peaceful and factual framework for discussion;
- appreciate the value of specific intangible assets (medical reputation, patient base, scientific partnerships);
- and measure the recurring earning capacity of an economic model exposed to Swiss health regulations.
The evaluation mobilized several complementary approaches:
- one Substantial method approach, in order to assess the net value of adjusted economic assets;
- one performance-based approach, based on the capitalization of recurring results;
- The Practitioners' method, combining performance and substantial value;
- one Multiples of transactions approach, based on a sample of comparable clinics and laboratories (generally between 6x and 10x EBITDA depending on specialization and technological level);
- And a discounted cash flow (DCF) approach, integrating growth assumptions, regulatory constraints and future medical investments.
Approach and results
The work made it possible to determine a neutral and consensual range of economic value, recognized by both parties as a reference base for negotiation.
The analysis highlighted the specific value of medical expertise, the quality of the technical platform and the loyalty of patients.
The valuation thus made it possible to avoid litigation between shareholders and to facilitate an orderly exit of capital within a fair and documented framework.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.