What are your assets actually worth?
Not what they cost. Not what they sit on in the books. What they would actually sell for today, in the real market, to a real buyer.
Most businesses, lenders, and advisors think they know the answer. Many don’t. And the gap between assumption and reality is often where significant value is lost.
At Hilco APAC, one of the most common conversations we have is with clients who thought they knew what their assets were worth until they tried to sell them.
Every physical asset carries at least three distinct values at the same time. They are not interchangeable. Using the wrong one for the wrong decision can be costly.
Here is what each one means.
1. Book Value
Book value is the number on your balance sheet. It is the original cost of the asset, minus accumulated depreciation.
It is an accounting number. Not a market number.
It tells you what the asset cost and how it has been written down over time. It does not tell you what anyone would actually pay for it today.
Example: A piece of manufacturing equipment that cost $500,000 twelve years ago may sit at $50,000 on the books. In the real market, it might sell for $180,000 — or $20,000. Book value will not tell you which.
Yet many boards and directors still make asset decisions based on this number alone.
2. Fair Market Value (FMV)
Fair market value is what an asset would sell for between a willing buyer and a willing seller. Neither is under pressure. Both understand the market. There is adequate time to transact.
This is the number that matters for:
A well-managed asset sale should be targeting fair market value. The key assumption is adequate time. When that changes, so does the number.
3. Forced Liquidation Value (FLV)
Forced liquidation value is what assets actually fetch when they must be sold quickly. Usually within 60 to 90 days. Often at auction. Often under financial or legal pressure.
This is the number that applies in:
Forced liquidation value is almost always significantly lower than fair market value. Depending on the asset type and time available, it can be anywhere from 40% to 70% of fair market value.
That gap between what an asset is worth and what a rushed sale recovers is where value is lost.
Between fair market value and forced liquidation value sits a fourth standard: orderly liquidation value.
Orderly liquidation value is what assets would realise if sold over a reasonable period, typically 90 to 180 days in a structured, managed process. It assumes a motivated seller, but not a panicked one. It allows time for proper marketing and competitive buyer interest.
For most practical asset recovery situations, OLV is the most relevant number. A well-managed monetisation strategy should always be targeting this, and it consistently outperforms what a rushed process achieves.
The difference between hitting OLV and falling to FLV often comes down to one thing: whether the right expertise was brought in early enough.
The difference between these values is not just technical. It has real consequences.
For lenders: A lender who underwrites against fair market value without knowing the forced liquidation value of that specific asset class is carrying more risk than they realise.
For restructuring and advisory professionals: An administrator who accepts the first offer under time pressure may be leaving 30 to 40 cents in the dollar on the table.
For industrial corporates: A poorly timed disposal of surplus or end-of-life assets can recover a fraction of what a managed process would achieve.
The variable that sits between a good outcome and a poor one is always the same: time, strategy, and buyer reach.
An independent asset valuation from Hilco APAC gives you more than a single number. It gives you the full picture:
That context is everything. Without it, you are making decisions based on assumptions and in asset-intensive situations, assumptions are expensive.
Our Valuation & Diligence team works across every major asset class:
Our valuations are independent, defensible, and grounded in real market data, not desktop estimates or depreciation schedules. See how this plays out in our case studies.
Understanding what your assets are worth is the starting point. Getting as close to that number as possible when you sell is the other half.
That is where monetisation strategy and global buyer reach make the difference.
Assets sold to a local buyer pool in a depressed market will almost always achieve less than the same assets marketed globally. A mining fleet that attracts limited local interest may generate strong demand from operators in South-East Asia. Specialist equipment with a narrow domestic buyer pool can achieve significantly better results when marketed to the right international audience.
Hilco APAC connects your assets to a global network of over 2 million buyers across 26 countries. Through our Advisory and Monetisation capabilities, we build the strategy to close the gap between valuation and outcome.
Because the number on the page is only as valuable as the process behind it, talk to our Valuation team today.
Have an excess, obsolete or returned stock challenge? Talk to us.
Rochelle has forged a career as a Retail inventory specialist over 18 years across auctions, marketplaces, eCommerce and Retail, locally and internationally. Having worked for both high growth start-ups and Australia’s largest retail corporations, Rochelle has seen the myriad of challenges faced by Retailers in complex inventory environments.
As Director, Wholesale at Hilco Global, Rochelle translates this expertise in buying, sourcing and trading, offering clients strategies that can be deployed immediately in solving inventory challenges at scale.
"*" indicates required fields
