Business Valuation | Switzerland Vs. france

Why do company valuations differ between France and Switzerland?

Methods, practices, and value impacts

Business valuation is not based solely on financial models. She is deeply influenced by the legal, fiscal, cultural and market context in which the company evolves.

In this France—Switzerland cross-analysis, we look back at the major differences in assessment approaches, as practised by M&A, private equity and financial advisory professionals in both jurisdictions.

Understand why the value differs by country

The same company may be subject to significantly different values depending on whether it is evaluated in France or Switzerland. These differences can be explained in particular by:

The preferred valuation methods (DCF, comparable, transaction multiples);
The structure and depth of markets ;
The Risk perception by investors;
The professional standards and technical references used;
The economic and financial mentalities specific to each country.

France vs Switzerland: professional practices and references

The analysis highlights:

The current approaches in France, often more standardized and influenced by fiscal doctrine;
The Swiss practices, generally more market-oriented, pragmatic and transactional;
The role of macroeconomic context in the construction of financial hypotheses;
The technical standards mobilized by independent experts and M&A advisers.

‍

Taxation and financial instruments: a key issue

An essential part of this analysis is devoted to the taxation of financial instruments, in particular the Management Packages.

We are addressing:

The obligations ofindependent expert ;
regulatory and fiscal constraints;
the interpretation of the rules applicable in each jurisdiction;
The points of attention for founders, managers and investors.

The differences in treatment between France and Switzerland have concrete consequences on the structuring of transactions, price negotiation and value distribution.

A resource for cross-border transactions

This publication offers a complete and nuanced vision of business valuation in French-speaking Europe, with a specific focus on France—Switzerland issues.

In particular, it is aimed at:

to directors and founders;
to investors and funds;
to M&A advice;
to anyone involved in cross-border transactions or valuation, structuring and taxation issues.