No founder thinks about liquidation when starting a business. But competitors' actions, economic crises and a combination of other factors do bring companies to liquidation — voluntary or through bankruptcy. Whatever the cause, the company must settle its debts, and it can only do so by selling its assets — which, under Ukrainian law, must be valued by a certified valuer. The requirement exists to protect creditors' rights.
The Kanzas company values assets in company liquidations and bankruptcies. 20+ years of experience.
Three kinds of liquidation value
Assets are valued in liquidation to determine their liquidation value, which can take three forms:
- orderly liquidation value — where assets are sold off over a reasonable period, allowing them to fetch higher prices;
- forced liquidation value — where assets must be sold within the shortest possible time;
- liquidation value on cessation of the assets' existence — where assets cannot objectively be sold and are therefore scrapped or written off, with a new enterprise created in place of the liquidated one.
Liquidation value is always below market value, and the discount must be substantiated — by the exposure period, the asset's condition and the market's depth. A discount "plucked from the air" invites creditor claims and challenges.
When a liquidation valuation is needed
Voluntary liquidation — settling with creditors and distributing assets among participants; bankruptcy — forming and selling the liquidation estate; sales of assets of liquidated banks and enterprises; write-offs of unsellable assets.
Assets valued
Integral property complexes, real estate, equipment, vehicles, inventory, receivables (claim rights), corporate rights — including the most complex and specialised assets.
Working with liquidators and creditors' committees
Our specialists have extensive, positive experience working with company liquidators on the most complex and specialised assets and claim rights — which removes any questions when dealing with creditors' committees.
We offer substantiated liquidation values that withstand creditor and court scrutiny, realistic timelines and an individual approach to every procedure. Write to us by email or messenger — we will discuss your asset list.
FAQ
How does liquidation value differ from market value? By the sale period: a shortened exposure means a substantiated discount.
What kinds of liquidation value exist? Orderly, forced, and value on cessation of the assets' existence — depending on the sale conditions.
Who commissions the valuation? The liquidator, the insolvency officer, the owners.
Do you value claim rights? Yes, with recovery probability analysis.
