Asset liquidation
Asset liquidation is the process of selling off a company's assets to convert them into cash. This often occurs when a business is closing down or facing financial difficulties. Assets can include anything of value, such as equipment, inventory, or real estate. The goal of liquidation is to settle debts with creditors and distribute any remaining funds to owners or shareholders. It can happen voluntarily, where the company chooses to liquidate, or involuntarily, through legal processes like bankruptcy. Essentially, it is a way to turn physical or intangible goods into money to address financial obligations.
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Asset liquidation refers to the process of converting assets into cash by selling them. This typically happens when a company is undergoing financial difficulties, is going out of business, or needs to raise funds quickly. The assets can include everything from inventory and equipment to real estate and investments. Liquidation can be voluntary, initiated by the owner, or involuntary, often resulting from bankruptcy proceedings. The goal is to sell off the assets as quickly as possible, often at discounted prices, to settle debts and provide funds to creditors or stakeholders.