liquidate the assets

Meaning

To 'liquidate the assets' means to sell off a company's or individual's non-cash holdings (such as real estate, machinery, inventory, or stocks) to convert them into cash. This process is usually carried out to pay off creditors during insolvency, close down a business entity, or free up capital for other investments.

Examples

• The court ordered the company to liquidate the assets to repay its outstanding debts.

  The court ordered the company to liquidate the assets to repay its outstanding debts.

• Before closing the retail branch, they had to liquidate the assets, including the remaining inventory.

  Before closing the retail branch, they had to liquidate the assets, including the remaining inventory.

• In order to raise cash quickly, the investment firm decided to liquidate the assets of the subsidiary.

  In order to raise cash quickly, the investment firm decided to liquidate the assets of the subsidiary.

• The executors of the estate will liquidate the assets and distribute the cash among the heirs.

  The executors of the estate will liquidate the assets and distribute the cash among the heirs.

• It took nearly six months to liquidate the assets due to the complex nature of the real estate holdings.

  It took nearly six months to liquidate the assets due to the complex nature of the real estate holdings.

Common Mistakes

• ✗ They liquidated the assets into cash.

  ✓ They liquidated the assets.

  The verb 'liquidate' inherently means to convert assets into cash. Adding 'into cash' is redundant.

• ✗ The business had to liquidize the assets.

  ✓ The business had to liquidate the assets.

  'Liquidize' is used in cooking to mean blending or pureeing food. In finance and business, the correct term is 'liquidate'.

Related Expressions

Practice

• To settle the outstanding loans, the bank required the firm to ___.

  💡 Sell off physical or financial property to get cash.

  Show answer

  liquidate the assets

• The liquidator's primary job is to ___ and distribute the proceeds to creditors.

  💡 Convert the company's property into cash.

  Show answer

  liquidate the assets