Liquidation value is the estimated amount that can be obtained from selling an asset or a company’s assets in the event of a liquidation. It represents the net proceeds that would result from the forced sale of assets, typically at a lower price than market value due to the urgency of selling. This concept is vital in assessing a company's worth, especially during bankruptcy or financial distress, and ties closely with valuation approaches, book value methods, and specific analyses focused on liquidation scenarios.
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