Definition: The estimated amount obtainable from disposing of assets under stated liquidation conditions, including the assumed sale period and costs.
Example
An analyst estimates proceeds from selling a closing business's equipment within a limited marketing period.
Keep the distinction clear
Liquidation value can differ from going-concern value and from market value under ordinary exposure conditions. State the assumptions rather than assuming every liquidation is a forced sale.
Related terms
Liquidation · Going-Concern Value · Market Value
Keep studying
References: FREC Course II syllabus, Sessions 6 and 9
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