going-concern value

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Going-concern value

The value of a company to another company or individual in terms of an operating business. The difference between a company's going-concern value and its asset or liquidation value is deemed goodwill and plays a major role in mergers and acquisitions.

Going-Concern Value

The value of a company as long as it remains in business. One calculates the going-concern value by adding the value of its goodwill and income to its net asset value. This is an important calculation when determining the appropriate purchase price in a merger or acquisition. Mortgage lenders also use it to determine the value of an income-producing property.

going-concern value

The value of a business in operation,taking into account the goodwill and the value of the income, in addition to hard assets, such as real estate and equipment. When appraising a project to develop income-producing property,the appraiser will usually provide two numbers—one for the project on the day of completion,with no tenants,and one when it reaches stabilized occupancy and is a going concern.Lenders who take mortgages on income-producing property with intensive management aspects—such as hospitality properties—usually obtain a going-concern rider for the title insurance so that coverage will be increased above the value of the real property.

References in periodicals archive ?
The result of deducting total operating expenses from total operating revenues is net income from hotel operations, which is capitalized to going concern value.
The rationale for placing goodwill and going concern value in a true residual class, Class V, may be that the IRS was concerned that placing all Sec.
What action should each partnership consider taking to ensure a valid election; The transferee partnership cannot amortize the goodwill or going concern value pursuant to a Sec.
The window period prevents the related parties from churning goodwill or going concern value from unamortizable status under prior law to an amortizable asset under new law.
The inclusion of such assets as goodwill and going concern value are especially noteworthy since those assets are not depreciable under current law.
The former is called liquidation value and the latter is called going concern value.
Going concern value, by contrast, is an estimate of the present value of the firm's future earnings under a variety of scenarios that faithfully reflect risks to the viability of the firm's business.
The IRS believes that goodwill and going concern value are "so inherently unique and inseparable from the business" that they can never be of like kind with any other goodwill or going concern value (T.
He noted that transfers of foreign goodwill and going concern value would likely remain exempt under section 367(d), but the question is whether the value transferred offshore is attributable to the exempt items.
Congress enacted Chapter 11 to enable a debtor to preserve its going concern value and operations, as well as to provide its employees with jobs and to satisfy creditor claims based upon the value of the reorganized company.
Our goal is to preserve and grow the going concern value of VegasInsider.
investment value, going concern value, value in use, and so on.