Independent Business Valuation Mandate for Transactional Arbitration
Independent valuation of a Swiss healthcare company conducted as part of a neutral transactional arbitration process
Mandate Description
The mandate consisted of a valuation assignment carried out jointly on behalf of the seller and the purchaser in the context of a transactional arbitration, with the objective of establishing a neutral and objective value for the company.
The assignment took place within a capital reorganisation process, following disagreements between shareholders regarding the valuation of the shares.
The company, based in Switzerland, operates a medical laboratory and a fertility centre recognised 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 its profitability, recent medical investments and the sensitivity of its highly regulated business environment.
Key Issues
The main challenges of the mandate were to guarantee full neutrality within a mission mandated jointly by the seller and the purchaser.
A key objective was to reconcile divergent interests while maintaining a calm, factual and structured framework for discussion.
The valuation also required assessing the value of specific intangible assets, including medical reputation, patient base and scientific partnerships.
Finally, it was essential to measure the recurring earnings capacity of a business model exposed to Swiss healthcare regulations.
Approach and Results
The valuation relied on several complementary approaches.
- A substantial value approach was applied to assess the adjusted net value of the company’s economic assets.
- A performance-based approach was used, based on the capitalisation of recurring earnings.
- The practitioners’ method was also implemented, combining performance-based value and substantial value.
- In addition, a transaction multiples approach was applied, based on a panel of comparable clinics and laboratories, with observed EBITDA multiples generally ranging between six and ten times depending on specialisation and technological sophistication.
- A discounted cash flow approach was also used, integrating growth assumptions, regulatory constraints and planned future medical investments.
The analysis resulted in a neutral and consensual valuation range, recognised by both parties as a reference basis for negotiation.
The valuation highlighted the specific value of medical expertise, the quality of the technical platform and the loyalty of the patient base.
This assignment helped avoid shareholder litigation and facilitated an orderly capital exit within a fair, transparent and well-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.