In what cases would you rely on a liquidation valuation?
- For pre-revenue startups, whose only measurable worth is the resale value of the few assets they happen to own
- As the default method for any mature business, since asset resale values are more objective than projections
- For asset-light service firms, where there are barely any tangible assets left to sell off in the first place
- For distressed or bankrupt companies, valuing assets sold off minus liabilities as a floor
- For high-growth companies, where selling off the assets today locks in value before the future cash flows arrive
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