What is Net Orderly Liquidation Value (NOLV)?
Net Orderly Liquidation Value (NOLV) is a term used in finance to refer to the estimated value of an asset in a forced sale or liquidation scenario. It is the value that an asset would draw if it were sold.
The Net Orderly Liquidation Value is typically lower than the fair market value of the asset, as the forced sale process involves a rapid sale with a limited pool of potential buyers. The NOLV calculation considers the costs associated with the sale of the asset, such as the cost of advertising, fees, etc.
Net Orderly Liquidation Value is often used in the context of valuing the collateral of a loan, where a lender may require that the collateral value exceeds the outstanding loan amount.
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