Liquidation value is the estimated amount that would be realised from the sale of a company's assets in a distressed or forced sale scenario — typically significantly below fair market value due to time pressure, limited buyer pool and asset specificity. It is the floor value in any business valuation and serves as a reference in restructuring and insolvency contexts. Orderly liquidation value (sufficient time, reasonable marketing) is higher than forced liquidation value (immediate disposal). The difference between going-concern value and liquidation value represents the "franchise value" or "goodwill premium" of continuing operations.

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Example: a Swiss precision engineering company is valued at CHF 22.0 million as a going concern (DCF). Its liquidation value — machinery at 40% of book value, inventory at 60%, receivables at 85%, less closure costs — amounts to approximately CHF 8.5 million. The CHF 13.5 million difference represents the value of continuing operations: customer relationships, know-how, workforce and the revenue stream that only exists if the business continues.

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Hectelion estimates liquidation values for restructuring advisory, secured lender assessments and distressed acquisition pricing in France and Switzerland.