Question:

What is a Liquidation Valuation analysis and when would you use it?

Answer hidden.

Answer:

Liquidation Valuation is an analysis to determine the value of a company after all of their assets have been sold off and they have paid off their liabilities.

A Liquidation valuation analysis would typically be performed in a bankruptcy scenario to determine whether or not equity shareholders would receive any capital after the company's debts have been paid off.

This analysis would help a struggling business to know if it would be better to sell off all its assets separately or to sell the entire company as a whole.

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