The liquidation value of a company is a strict valuation placed on an insolvent company by the courts during a bankruptcy proceeding.

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The liquidation value of a company refers to the estimated total value of a company's physical assets if it were to go out of business and its assets sold. This valuation does not necessarily involve the courts or bankruptcy proceedings, as it can be calculated for various purposes, including financial analysis, investment evaluation, or strategic planning.

The Liquidation Value of a Company Is a Strict Valuation