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Valuation Methods Explained: FMV, OLV, FLV Made Simple

Valuation Methods Explained: FMV, OLV, FLV Made Simple

If you’re planning to sell used or surplus equipment, you’ll likely hear terms like FMV, OLV, and FLV. These are common ways to measure what your assets are worth — but what do they really mean? At Surplus Cascade, we believe in clear, simple explanations. So here’s a breakdown of FMV vs OLV vs FLV in plain language.

What Is FMV (Fair Market Value)?

FMV stands for Fair Market Value. It reflects the price your equipment could sell for on the open market — assuming a willing buyer and seller, no pressure, and a fair transaction.

Example: If your equipment is clean, tested, and in good working order, this is the number you’d expect if you had time to wait for the right buyer.

When it’s used: Financial reporting, resale planning, and insurance coverage.

What Is OLV (Orderly Liquidation Value)?

OLV means Orderly Liquidation Value. This is the price you might receive if you had 30–90 days to sell, but still wanted real market exposure.

It’s usually lower than FMV, because there’s some urgency — but it’s not a forced sale.

When it’s used: Planned divestitures, auctions, and business exits.

What Is FLV (Forced Liquidation Value)?

FLV stands for Forced Liquidation Value. This represents the price you might get in a hurry — for example, during bankruptcy or emergency clearance.

Buyers know you’re in a rush, which gives them leverage to offer less.

When it’s used: Bankruptcies, repossessions, and court-ordered sales.

Why These Values Matter

Understanding FMV, OLV, and FLV helps you make smart decisions. Each number represents a different strategy — from maximizing returns to moving assets fast. At Surplus Cascade, we help you identify the right path based on your timeline and goals.

Quick Example

  • FMV: $10,000 (no rush, clean sale)
  • OLV: $7,000 (sell in 30–60 days)
  • FLV: $4,000 (sell immediately)

This simple range helps set expectations and plan your next move.

Need Help Valuing Your Equipment?

Our team offers free equipment reviews and transparent resale guidance. Whether you’re closing a site or just exploring options, we give you real numbers — not guesses.


Want to know what your equipment is really worth?

📧 Contact us at sales@surpluscascade.com
🌐 Visit surpluscascade.com to schedule a no-pressure valuation.

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