What is a liquidation value?

The liquidation value is the value of company real estate, fixtures, equipment, and inventory. Intangible assets are excluded from a company's liquidation value. Liquidation value is the total worth of a company's physical assets if it were to go out of business and its assets sold.

What does it mean to liquidate a property?

To liquidate means to convert assets into cash. For example, a person may sell their home, car, or other asset and receive cash for doing so. This is known as liquidation. Many assets are assessed based on how liquid they are.

What is creditors voluntary liquidation (CVL)?

Creditors Voluntary Liquidation, also referred to as a CVL, is a type of liquidation that’s entered into voluntarily by company directors. The outcome of a CVL is the closure of the company and the liquidation of its assets in order to pay creditors.

What happens when a company is liquidated?

The liquidation of a company is when the company's assets are sold and the company ceases operations and is deregistered. The assets are sold to pay back various claimants, such as creditors and shareholders. The liquidation process happens when a company is insolvent; it can no longer meet its financial obligations.