The value of a business or an asset that is calculated in the special case of liquidation, as opposed to the case of sale in the ordinary course of the business. It is the value that results under exceptional circumstances where a company chooses to liquidate part or all of its assets and claims. This value is usually distortedly created in response to time pressures and even duress.

Exceptional circumstances include intense pressure from creditors, impending business failure, and so on. Liquidation values generally turn out to be substantially below reasonable or fair market values. Though liquidation value is applicable for a specific purpose, it may also be used to value assets of unproved businesses. Principally, liquidation value takes into consideration, in addition to the sale proceeds, any relevant expenses.