Sell vs Close Decision
Before you liquidate, answer one question: could you sell? Enter the estimated sale price (net of fees) and the liquidation recovery minus closing cost to see which path leaves you with more.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Sale vs Close
Net by Path
* Planning comparison only. If both paths are negative after debts, run the Insolvency Test — bankruptcy may be the real question. Not financial advice.
What This Tool Shows
Sale Path
Estimated sale price net of broker commission and liens.
Close Path
Liquidation recovery minus the closing cost.
Side-by-Side
The higher net path is recommended, with the dollar gap.
Insolvency Pointer
If both are negative after debts, it points to the Insolvency Test.
Authoritative References
- BizBuySell Market Data (2021–2025) — going-concern multiples vs liquidation norms.
- Liquidation-industry recovery studies (retrieved 2026-08-13).
Estimates only. This is a planning comparison, not financial advice. Confirm sale terms with a broker and attorney.
Sell vs Close FAQs
Selling as a going concern, almost always. A business priced at 2–3.5x SDE beats auction recovery of 25–50% on equipment and 20–50% on inventory. The tool runs both numbers for your case.
Broker commission (typically ~10%), any liens paid at closing, and the closing cost itself. The tool nets those out before comparing to liquidation.
If debts exceed assets, a sale may not leave you anything after liens — and you may need to consider bankruptcy. Run the Insolvency Test first if that is a risk.