Liquidation Value

Liquidation value refers to the estimated amount that could be obtained by selling off a company's assets in a quick sale, typically during bankruptcy or a winding-up process. This value represents what the company’s assets are worth when they are converted into cash, often at a discount compared to their market value due to the urgency of the sale. Liquidation value is important for investors and creditors to assess the potential recovery of their investments or loans if the company ceases operations.