A competitor has approached us and is looking for an exit. This company is experiencing cashflow issues due to excess inventory and slowing demand and at this point is unable to pay its supplier obligations. This company has also experienced gross margin deterioration due to elevated manufacturing and shipping costs resulting from supply chain issues - raising product prices would price the company out of the market, and slashing operating costs would require a 50% cut. If the company is not able to find a buyer, they plan to liquidate. The last time this company had healthy EBITDA was in###-###-#### ignoring 2020 results as it was a one-time bump in results).

How does one value such a company? Estimate the fair market value of the hard assets on the balance sheet (which is primarily inventory)? The alternative for us would be to allow the company to liquidate so that we can attempt to gain market share.