# Deemed liquidation event

> Deemed liquidation event — A merger, sale of control or sale of substantially all assets that the charter treats as a liquidation, so the liquidation preference applies to the sale proceeds.

Source: https://lopifi.com/glossary/deemed-liquidation-event
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is deemed liquidation event?** In accounting, deemed liquidation event means a merger, sale of control or sale of substantially all assets that the charter treats as a liquidation, so the liquidation preference applies to the sale proceeds.

## Words this system refuses for it

- IPO
- dissolution alone

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** liquidation-preference