The sum a business could realize by ceasing operation entirely and selling off its assets. For most firms break-up value is below the value as a going concern, so they stay in business. If a firm’s break-up value exceeds its value as a going concern, it is economically rational to close it down and sell off the assets. Many types of asset do not have liquid markets, so the process of closing down takes time, during which asset values may change. The break-up value can therefore only be estimated prior to sale of the assets.