Auction Value

Last Updated: Jun 6, 2019

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The amount of value an asset (such as inventory or equipment) can be expected to generate under forced sale conditions, or a sales timeframe limited to 30-60 days. The forced sale involves auctioning the asset to the general public in a limited timeframe. This method of sale generally results in a lower value realized compared to a going concern sale. Gross Auction value is the amount the asset is sold for at auction before expenses such as marketing and holding costs. Net Auction value is after those expenses. Typically the buyer of the asset pays a buyers premium which is the auctioneer’s commission. Auction Value can also be referred to as Forced Liquidation Value.