Liquidation of Assets - Machinery and Equipment Appraisals

Liquidation conclusions of value for an asset arise from a seller being under an extreme compulsion to sell an asset within a limited period of time. The liquidation value of assets is most often used for dissolution purposes, which can include the dissolution of business partnerships, corporations, and marriages. The priority of the parties involved would be the disposition of the assets before any division of cash.

There are three types of liquidation values, including orderly liquidation, forced liquidation, and liquidation value in place. All three values take into account a compelled seller within a limited amount of time to complete the sale, with time being to factor indicating the type of liquidation value. According to the American Society of Appraisers, the preceding is defined as: 

  • Orderly Liquidation Value: the estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser, with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.
  • Forced Liquidation Value: the estimated gross amount, expressed in terms of money, that could be typically realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.
  • Liquidation Value In Place: the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facility would be sold intact with a limited time to complete the sale, as of a specific date.

If you are a business or individual facing liquidation, or just are in need of obtaining liquidation values, contact Equipment Appraisal Services today to learn more about our certified equipment appraisal reports. Each equipment appraisal report is assembled and reviewed by a qualified appraiser, and member of the American Society of Appraisers.