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in other words can we say Break-up value is the sell off value of the asset or net realisable value of the asset?
and it has been named as ‘break up-value’ other than ‘sale value’ of the asset as the business is breaking up. right?
If a company is going into liquidation then they are forced to sell their assets and are likely to end up having to sell them at a lower price.
If they are not going into liquidation, but choose to sell an asset, then there is no rush to sell and they are likely to be able to get a higher price.okay so if the business is liquidating, then the immediate sales value or forced sale value of the asset is refer to as Break-up value which is at much lower price than the normal sales value of the asset.
and thats why its different from the normal sales value or NRV of an asset.right?
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