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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Because the terms business enterprise, business enterprise value, going concern, going concern value, and goodwill are so confounded, new terms were coined coincident with developing the Appraisal Institute's Course 800.
That technique implied BEV of $1.3 million, the difference between the total going concern value and the cost of the real estate that includes a normal entrepreneurial profit margin for building the facility.
The guidance concluded that those intangible properties were closely related to, if not part of, the goodwill and going concern value of the newspapers.
First, the real property value can be identified as the residual difference between going concern value and the combined total of tangible personal property and intangible asset value.
Section 1060(b)(1) granted regulatory authority to require the buyer and seller of a business to provide to the IRS information on the amount of consideration received (and paid) for goodwill and going concern value. Section 1060(d)(1) applied the rules of section 1060(a) in the case of a distribution of partnership property or a transfer of a partnership interest but only for purposes of determining the value of goodwill or going concern value for purposes of applying section 755, which provides rules for allocation of basis.
197 intangibles except goodwill and going concern value, and (VII) goodwill and going concern value (id.).
167) and going concern value could not be depreciated because they lacked an ascertainable life.
Prior to the enactment of Sec.197 in 1993, certain intangible assets -- including goodwill and going concern value -- were not amortizable.
1.367(a)-5T(e), goodwill and going concern value developed by the foreign business prior to incorporation); and (5) under Sec.
When research projects in question are still in a relatively early stage, it may be possible to satisfy the buy-in requirement by making a "catch up" time-valued payment that reimburses prior R&D costs and includes a premium for risk and going concern value (or, more properly, a type of "assembled work force" valuation).
It appears that the House Report failed to consider these cases, because it provides that no goodwill, going concern value or other Sec.