Can the market value be different from the sales value?
This depends on the ability to convert the asset into cash without significant loss of value.
What factors affect sales execution?
The factors that affect the execution of the sale are called “Liquidity Discount” and can be listed as follows:
• Market impact: represents the effect of other offers in the market during negotiation;
• Amplitude of purchase and sale offers: affect values with possible discounts;
• Delays in negotiations and lost business: affect sales opportunities;
• Need to sell: affects the value of the negotiation;
• Percentage of the asset’s value in the seller’s equity: pressure for sale;
Negotiations may not be affected by the liquidity discount or may be affected by one or more factors together that will influence the market value.