Business Liquidation Calculator: How Much Would You Actually Get?
What would your business assets sell for in liquidation?
What Would Your Business Yield in Liquidation?
Enter your assets at book value and liabilities. The liquidation proceeds, waterfall, and owner recovery update live as you type.
Business Assets (Book Value)
Industry-average liquidation recovery rates shown under each field.
72% avg recovery · 60%–85% range
38% avg recovery · 20%–60% range
35% avg recovery · 25%–50% range
78% avg recovery · 65%–90% range
65% avg recovery · 50%–80% range
12% avg recovery · 5%–25% range
0% avg recovery · 0%–15% range
40% avg recovery · 20%–60% range
Liabilities & Assumptions
Typically 8–15% of gross proceeds
Used to estimate going-concern alternative value
Results are estimates only and do not constitute financial, tax, or legal advice. Consult a qualified professional before making financial decisions.
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When a business is wound down — whether voluntarily, through Chapter 7 bankruptcy, or through assignment for benefit of creditors — assets are typically sold at forced-sale prices dramatically lower than book value or going-concern value. This gap between what assets are worth on the balance sheet and what they yield in liquidation is the liquidation discount, and it can be 40-70% for most business asset types. Receivables sell for 60-85 cents on the dollar or less if aged. Inventory sells for 20-60% of cost depending on category and obsolescence. Equipment sells for 25-50% of book value at auction. Real estate may achieve 70-85% of market value in a forced sale. Intangibles — customer lists, software, brand value — typically yield little or nothing in an unorganised liquidation unless a strategic buyer is found. This calculator applies standard liquidation discount rates to each of your business asset categories, distributes the proceeds in legal priority order — secured creditors first, then priority unsecured, then general unsecured, then equity — and shows exactly what each class recovers. Critically, it shows what the business owner walks away with after all creditors are paid. For many small businesses, the answer is nothing. Updated 2026-03-06 · Samir Messaoudi.
- →You are considering closing your business and want to know what you would recover after paying creditors
- →You are a secured lender evaluating collateral coverage in a business workout
- →You want to compare liquidation recovery against continuing operations or selling as a going concern
- →You are filing Chapter 7 for a business and want to model what creditors will receive
- →You want to know whether liquidation would produce enough to pay off your business debts
- →You are evaluating a distressed business acquisition and need to establish the liquidation floor value
Marina's Restaurant LLC. Assets at book value: accounts receivable $45K, inventory $28K, equipment $180K, leasehold improvements $65K, goodwill $120K — total $438K. Liquidation recovery after discounts: AR 70% ($31.5K), inventory 35% ($9.8K), equipment 30% ($54K), leasehold 15% ($9.75K), goodwill 0% ($0) — total $105K. Creditors: secured bank loan $95K, trade payables $62K. After secured lender paid: $10K remaining for $62K in unsecured claims — 16 cents on the dollar. Owner proceeds: $0.
- ✕Using book value rather than liquidation discount value — book value can be 3x the actual liquidation proceeds
- ✕Forgetting trustee and professional fees at the top of the waterfall — these consume 5-15% of proceeds before creditors are paid
- ✕Assuming goodwill has liquidation value — it typically yields nothing in a disorganised wind-down
- ✕Not comparing liquidation against going-concern sale value — even a modest going-concern premium can dramatically change outcomes
- ✕Overlooking personal guarantees — in most small business liquidations the owner has personally guaranteed debt, meaning creditors can pursue personal assets
What is the typical liquidation discount for business assets?
Liquidation discounts vary significantly by asset type. Accounts receivable: 60-85% of face value depending on age and quality. Inventory: 20-60% of cost — finished goods in sellable condition achieve higher rates, obsolete stock achieves lower. Equipment and machinery: 25-50% of book value — recent standard equipment achieves higher rates, specialised equipment achieves lower. Real estate: 70-85% of appraised value in a forced sale. Goodwill and intangibles typically yield 0% in liquidation unless a strategic buyer acquires the business.
What is the legal order of payment in a business liquidation?
The absolute priority order in a Chapter 7 business liquidation is: (1) secured creditors up to the value of their collateral, (2) Chapter 7 administrative expenses including trustee fees, (3) priority unsecured claims such as wages owed to employees and tax obligations, (4) general unsecured creditors pro rata, (5) subordinated creditors, (6) equity holders. In most small business liquidations, general unsecured creditors receive partial recovery and equity holders receive nothing.
Is a going-concern sale always better than liquidation?
Almost always yes. Going-concern sales preserve the value of customer relationships, trained workforce, operating systems, and brand — elements that disappear immediately in a liquidation. The going-concern premium over liquidation value is typically 30-100% for service businesses and 20-50% for product businesses. However, achieving a going-concern sale requires time, a motivated buyer, and operational continuity during the sale process — conditions that may not exist in a financial crisis.
What is an Assignment for Benefit of Creditors?
An ABC is a voluntary, state-law alternative to Chapter 7 bankruptcy liquidation. The business owner assigns all business assets to an independent assignee, who liquidates the assets and distributes proceeds to creditors according to priority rules similar to bankruptcy. ABCs are faster and less expensive than Chapter 7 because there is no court involvement and professional fees are lower. ABCs work best when the business has clear assets, cooperative creditors, and no contested claims.
Can I keep any assets from a business liquidation?
In a Chapter 7 business liquidation, almost no assets are retained — the trustee liquidates all non-exempt property of the business entity. In a voluntary wind-down not involving bankruptcy, the business owner can retain assets only after all creditors are fully paid — which is rarely possible in a distressed closure. Directors and officers must be careful not to make preferential payments to insiders in the 90 days before a formal liquidation process, as these can be clawed back by a trustee.