Definition: An estimate of the proceeds and obligations involved in selling a business's assets separately and winding up its operations.
Example
An analyst estimates equipment and inventory sale proceeds, then accounts for selling costs and outstanding liabilities.
Keep the distinction clear
Liquidation analysis differs from valuing a profitable business as an ongoing operation. Sale timing and whether a sale is forced can affect the result.
Related terms
Liquidation · Going-Concern Value · Liabilities
Keep studying
References: FREC Course II syllabus, Session 9
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