Consider using the Liquidation Value Method (as opposed to the Net Asset Value Method) when valuing a company if the:

1. The liquidation value is an appropriate definition of value 10/' the company being valued.
2. The ownership interest being valued is either has a controlling interest or has the ability to cause the sale of the company's assets.
3. The company is in bankruptcy or there Is substantial doubt about the company's ability to continue as a going concern.
4. The company's current and projected cash flows from continuing operations are low compared to its net assets.
5. The company may be worth more "dead" than "alive."