Liquidation Analysis

Valuation method that estimates the net proceeds from selling business assets individually rather than as a going concern. Used for distressed situations or asset disposal scenarios.

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Liquidation Types

Orderly Liquidation

Assets sold over reasonable timeframe with proper marketing and preparation.

6-12 month timeframe
Proper marketing and exposure
Higher recovery rates (60-80%)
Forced Liquidation

Assets must be sold quickly under distressed circumstances with limited marketing time.

1-3 month timeframe
Limited marketing opportunities
Lower recovery rates (30-60%)

Asset Recovery Estimates

Real Estate

80-95%

Orderly liquidation

Equipment

40-70%

Varies by age/condition

Inventory

30-60%

Depends on obsolescence

Intangibles

0-20%

Rarely recoverable

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