By providing additional time, the party that is leaving the business or their heirs will then receive money for the equipment that is sold without having to either lose out on the machine's value through a quick sale or wait a long period of time for it to sell using conventional methods and fair market value.
Banks also often lend based on Orderly Liquidation Value.
When you're getting ready to sell a business, knowing the orderly liquidation values allows you to gain quick cash to help with financing or to provide an additional buffer during the sale process if things don't go as smoothly as you'd like.
When you're purchasing a business, knowing these values allows you to relatively quickly sell some of the excess equipment to pay down debts or meet other needs during the process.
(d) the liquidating value of futures, forward or options contracts not admitted to official listing on any stock exchange or dealt on any Other Regulated Market shall mean their net liquidating value determined, pursuant (d) Fr alle nicht zur amtlichen Notierung an einer Wertpapierbrse zugelassenen oder an einem anderen geregelten Markt gehandelten Futures-, Termin- und Optionskontrakte entspricht der Liquidationswert ihrem Nettoliquidationswert, The liquidating value of futures, forward or options contracts admitted to official listing on any stock exchange or dealt on any Other Regulated Market shall be based upon the last available settlement prices of these contracts on stock exchanges and Regulated Markets on which the particular futures, forward or options contracts are traded by the Company; provided that if a futures, forward or option contract could not be liquidated on the day with respect to which net assets are being determined, the basis for determining the liquidating value of such contract Der Liquidationswert von zur amtlichen Notierung an einer Wertpapierbrse zugelassenen oder an einem anderen geregelten Markt gehandelten Futures-, Terminund Optionskontrakten wird anhand des letzten verfgbaren Abrechnungskurses fr diese Kontrakte an den Wertpapierbrsen und geregelten Mrkten, an denen diese Kontrakte von der Gesellschaft gehandelt werden, ermittelt.It's calculated under the assumption that the piece of equipment or machinery must be sold, but that there is a longer period of time to do so, such as a few months.You would receive less than you would at fair market value, but receive more than you would under a forced liquidation.An appraiser has several ways of estimating Fair Market Value.In residential real estate they generally stick to the Sale Comparison Approach, or comps, for short.
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Fair market value assumes that the equipment would fall under normal exposure in the market place before being sold for what is perceived as a fair price to both the buyer and seller.