Liquidation value
A short, practical note on liquidation value, with the public definition from IVS / Red Book (effective 31 January 2025).
In my practice, liquidation value is the amount realised when an asset, or a group of assets, is sold in a liquidation, with the seller compelled to sell as of a specific date. It can be determined as an orderly transaction, with a typical marketing period, or as a forced transaction, with a shortened period. I always require the report to state which of these premises is assumed. It is a frequent question in insolvency and debt recovery.
“The gross amount that would be realised when an asset or group of assets are sold from a liquidation sale, with the seller being compelled to sell as of a specific date.”
Source: IVS Glossary 10.17 (ver IVS 102 Appendix A60.01)
Common confusion
Liquidation value ≠ ‘forced sale value’ as a basis: a forced sale is a premise or circumstance, not a basis of value (IVS 102).