What is the difference between fair market value and orderly liquidation value?

Fair market value (FMV) is the price at which a willing buyer and willing seller would agree when neither is under any compulsion to act and both have reasonable knowledge of relevant facts. There is no specific time pressure, and the market is assumed to be normal and open. Orderly liquidation value, by contrast, assumes the seller must sell, but has a reasonable period to do so and can market the asset in an organized way. Because of that pressure and the “as‑is, where‑is” nature of liquidation, OLV is typically lower than FMV, but higher than forced liquidation value, which assumes very little time and often an urgent auction.

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