Liquidation value
An estimate of asset realization under a stated liquidation premise, such as an orderly or forced sale. Distinguish gross asset proceeds, net realizations after costs, and any equity residual after claims.
Liquidation value in practice
Hypothetical valuation exercise: estimate realizable asset proceeds under specified sale conditions, subtract relevant realization costs, then assess creditor claims before estimating an equity residual. Compare a going-concern estimate only on a compatible value and date basis; no actual appraisal or numerical liquidation estimate is supplied.
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| Basis | What it measures |
|---|---|
| Gross liquidation proceeds | Estimated asset realizations under stated sale assumptions |
| Net realization | Proceeds less relevant realization costs |
| Equity residual | Amount left after relevant claims |
| Going-concern value | Value on a continuing-operation basis; compare like with like |
Terms Related to Liquidation value
Going concern · Book value · Multiple · Fair market value · All of the glossary