How to calculate net liquidation value?

Net liquidation value usually starts with the chosen liquidation premise—often orderly liquidation value—then subtracts selling‑related costs. A common approach is:

• Estimate gross OLV or FLV for each asset (or the asset pool).
• Sum those to get total gross liquidation value.
• Subtract transaction costs (auctioneer or broker fees, advertising, legal costs, appraiser fees).
• Subtract removal, transport, cleanup, and storage costs.
• Subtract any liens, secured debt, or other obligations tied to those assets.

The result is the net amount expected to be available to the owner or creditors after turning the assets into cash under the specified liquidation scenario.

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