Going-Concern Value | Propertylogy

Going-Concern Value

By on January 4, 2019

Going-concern value is the value of an operating business after taking into account it’s physical and intangible assets.

Hard assets include things like real estate and equipment while intangible assets include things like goodwill and customer base.

In many ways, it is related to the concept of value-in-use.

A business might have a going-concern value of $1m, consisting of $600k in hard assets like property and $400k in goodwill.

For commercial property, appraisers often produce 2 types of appraised value. One when the development was first completed, and one when the property is in use.

This going-concern value can then play a role an owner’s title insurance coverage.


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