Glossary · Doing the deal
Asset Liquidation
In short
Converting assets into cash, often to pay off debts or distribute funds. This happens if a business fails or assets are sold off.
What it means in a deal
In an acquisition, you're usually buying a going concern, not a business on the verge of liquidation. If the seller is liquidating assets before closing, understand why and ensure it doesn't impair the business's value or future operations.
Related terms
Common questions about Asset Liquidation
- What is the difference between an asset and stock purchase in a buyout?
- How does a recent significant personal asset purchase affect my SBA 7(a) loan application?
- What if the business I'm buying has intellectual property (e.g., patents, trademarks) as its main asset?
- How does an SBA 7(a) loan address the financing of intellectual property as a major business asset?
- Can an SBA 7(a) loan be used to purchase a business where goodwill is the primary asset?
- When is personal real estate required as additional collateral for a 7(a) loan with a business asset shortfall?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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