What is a liquidation event?

The “liquidation event” is a cash payment from the buyer to the selling shareholders (us). This is our goal, and what happened in Sabal Medical, The Iron Yard Academies, Verdeeco, and our other “exits.” 2) Sale of a company for shares. Like (1) above, except this time the buyer is offering publicly-traded shares.

What is a liquidation value?

The liquidation value is the value of company real estate, fixtures, equipment, and inventory. Intangible assets are excluded from a company's liquidation value. Liquidation value is the total worth of a company's physical assets if it were to go out of business and its assets sold.

What happens when a company is liquidated?

The liquidation of a company is when the company's assets are sold and the company ceases operations and is deregistered. The assets are sold to pay back various claimants, such as creditors and shareholders. The liquidation process happens when a company is insolvent; it can no longer meet its financial obligations.

What is the purpose of a liquidation if a company is insolvent?

The main purpose of a liquidation where the company is insolvent is to collect its assets, determine the outstanding claims against the company, and satisfy those claims in the manner and order prescribed by law. The liquidator must determine the company's title to property in its possession.