Glossary Terms

Liquidation Value

Liquidation value is the total worth of a company’s physical assets when it goes out of business or declares bankruptcy.

Liquidation value is the total worth of a company’s physical assets when it goes out of business or declares bankruptcy.

Liquidation value considers corporate assets such as equipment, inventory, and real estate. Often, liquidation value is lower than fair market value, as the assets are sold quickly and therefore receive less exposure to potential buyers.