Liquidation Analysis

Liquidation analysis is the process of evaluating a company's assets to determine their value if the company were to sell them quickly, usually during bankruptcy or financial distress. This analysis helps stakeholders, like creditors or investors, understand how much money could be generated from selling off assets to pay debts. It involves assessing the worth of physical assets, such as equipment and inventory, as well as intangible assets. The goal is to provide a realistic snapshot of potential recoveries in a worst-case scenario, guiding decisions on whether to invest in or support the troubled company.