Net Orderly Liquidation Value is the estimated net amount of cash that could be recovered from selling a company’s inventory or equipment in an orderly liquidation, after subtracting all costs required to complete the sale.
This includes fees such as brokerage commissions, legal costs, storage, transportation, marketing, and other liquidation-related expenses.
Unlike a forced sale, an orderly liquidation assumes the seller has a reasonable amount of time to find buyers and maximize recovery value.
NOLV is primarily used by lenders, especially in asset‑based lending, to evaluate the collateral value of inventory or equipment and determine how much they are willing to lend.
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