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.

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If we assume that assets can be sold for their estimated going-concern value, a typical firm's return matches the return to a benchmark portfolio.

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TEI submits that there is no statutory basis for denying like-kind treatment for goodwill or going-concern value.

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1 of The Appraisal of Real Estate, 13th edition (Appraisal Institute, 2008, page 30), where the going-concern value of a business enterprise is divided between tangible property (composed of personal property and real property) and intangible property of various types.

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In fact, even the going-concern value of an agency (tangible assets plus intangible assets, such as goodwill) may have little bearing on the actual purchase price of an agency.

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the remaining cases, going-concern value was small or nonexistent.

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We define our estimates as the difference between the going-concern value and the liquidation value of the firm's assets.

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Immediately before the effective date of the election, the fair market value (FMV) of FS's assets, including intangible assets such as goodwill and going-concern value, was less than the sum of its liabilities.

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The going-concern value of any hospitality property is as much influenced by competitive position in terms of its business as it is by real estate parameters.