All it takes is willing parties, several conference rooms and an independent third party serving as the mediator. There is no set time, place or manner beyond what the parties set by agreement. Usually a mediation starts with a brief opening session during which each side expresses its positions, followed by the parties going to different rooms while the mediator shuttles between them seeking a mutually acceptable solution. If a resolution is reached, it is only by agreement of the parties. No one can force a settlement and no one can force you to go beyond your agreement to attend the mediation.
Arbitrations can be quite formal and formulaic.
Arbitration hearings are akin to a trial except you pay an arbitrator to be the judge, jury and appellate courts all in one fell swoop. The parties gather their documents, prepare their witnesses and conduct a formal hearing before an arbitrator much the same as in court. Arbitration terms, like any other part of the contract, are negotiable as long as you negotiate them before you sign the contract. You can select one arbitrator or a panel of several. You can negotiate what experience, training or professional qualifications you want your arbitrators to have.