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Dictionary by pitch.dog
Valuation methods & enterprise value · Core

Liquidation value

Also called: break-up value

ELI5

Estimated net proceeds if assets are sold and obligations settled under a liquidation scenario.

Used in conversation

“Counsel wants liquidation value clarified before anyone signs.”

Pitch context

You will see “Liquidation value” in financial models, budgets, board packs and investor materials when the discussion reaches valuation methods & enterprise value.

Why it matters: In valuation methods & enterprise value, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.