Understanding asset values in liquidation: A closer look at the process

When a company enters liquidation, one of the most important aspects of the process is how its assets are dealt with. But what's often misunderstood is the structured, regulated approach that liquidators are required to follow when handling company assets.

This article aims to demystify that process and also explain some of the factors that impact the realisable value of assets, both positively and negatively, in liquidation scenarios.

Written by Sam Pryor, Aurelia Pereira and Matthew Watkins, Worrells Executive Analysts

Step One: Identifying and Securing Assets

Liquidators, by virtue of their role, must act quickly. The role includes identifying and taking control of all company assets, ranging from physical assets such as plant and equipment, stock, and vehicles, through to intangible assets like intellectual property, trademarks, and goodwill.