What type of auction is often used for liquidations?

An absolute auction is specifically designed to sell items to the highest bidder without any minimum price or reserve. This means that every item presented at this type of auction is guaranteed to be sold, which is ideal for liquidation scenarios where the goal is to turn assets into cash quickly. This method encourages competitive bidding, as bidders know that there is no price barrier preventing a sale.

For liquidations, sellers often want to ensure that all items are sold off to clear inventory or assets, and the absolute auction format is effective in achieving that goal. In contrast, other auction types may involve minimum bids or not guarantee that items will sell, making them less suited for liquidating assets quickly and efficiently.