An operating, normally functioning business’ worth to a buyer. This worth is usually more than the sum of the market’s liquidation value of this entity’s assets. It is viewed as excess value and is recorded in accounting as a firm’s goodwill. This worth comes from market pluses, stated as good reputation, trained and retained workforce, successful processes, proven systems, solid operational equipment, and necessary licenses and permits coverage.

More On This Topic

Link to This Definition
Did you find this definition of GOING CONCERN VALUE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary