Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets.
This liquidation value template helps you compute the liquidation value given a company’s total liabilities and assets in auction value.
This is what the liquidation value template looks like:
Download the Free Template
Enter your name and email in the form below and download the free template now!
Liquidation value is an estimation of the final value, which will be received by the holder of financial instruments when an asset is sold, typically under a rapid sale process. A business is generally liquidated as part of a bankruptcy process and tangible assets are sold quickly, often for pennies on the dollar, for an extremely low percentage of their original cost.
The calculation of liquidation value is used in financial instrument valuation to simulate the worst-case scenario when a company or business goes bankrupt. It is also used when a healthy company considers undergoing a merger, putting itself up for sale, or applying for credit from its investors or debtor.
Liquidation value can be calculated by removing the value of all assets and liabilities of a company from its financial report. The subtraction of liabilities from assets will give investors the liquidation value.
When working with liquidation value calculations, an investor should exclude intangible assets, such as goodwill, brand recognition, and intellectual properties.
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.
Take your learning and productivity to the next level with our Premium Templates.
Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI's full course catalog and accredited Certification Programs.
Already have a Self-Study or Full-Immersion membership? Log in
Access Exclusive Templates
Gain unlimited access to more than 250 productivity Templates, CFI's full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.