Business Valuation, Florida Business Valuation and Appraisal Service

Business Valuation

A Going Concern

A going concern is an established and operating business with an indefinite future life. For certain types of properties (e.g., resort hotels, sports complexes, casinos and manufacturing enterprises), the physical real estate assets are integral parts of an ongoing business. The market value of such a property (including all the tangible and intangible assets of the going concern, as if sold in aggregate) is commonly referred to by laymen as business value or business enterprise value, but in reality it is market value of the going concern including real property, personal property, and the intangible assets of the business.

Global Valuation has all of the required skills and the experience to complete this type of valuation assignment.

What makes up a "Going Concern"

going concern

Tangible and Intangible Property broken down

tangible and intangible property

Going Concern value defined

Traditionally, the term going-concern value has been defined as the value of a proven property operation. The current definition of the term highlights the assumption that the business enterprise is expected to continue operating well into the future (usually indefinitely). In contrast, liquidation value assumes that the enterprise will cease operations. Going-concern value includes the incremental value associated with the business concern, which is distinct from the value of the tangible real property and personal property. The value of going concern includes an intangible enhancement of the value of the operating business enterprise, which is produced by the assemblage of the land, buildings, labor, equipment, and the marketing operation. This assemblage creates an economically viable business that is expected to continue. The value of the going concern refers to the total value of the property, including both the real property and the personal property attributed to business value.

Insurable Value

Insurable value is the value of an asset or asset group that is covered by an insurance policy. Insurable value may be based on the replacement or reproduction cost of physical items that are subject to loss from hazards. This value is often controlled by state law and varies from state to state.

Liquidation Value

The most probable price that a specified interest in real property is likely to bring under all of the following conditions:

Consummation of a sale will occur within a severely limited future marketing period specified by the client.
The actual market conditions currently prevailing are those to which the appraised property interest is subject.
The buyer is acting prudently and knowledgeably.
The seller is under extreme compulsion to sell.
The buyer is typically motivated.
The buyer is acting in what he or she considers his or her best interest.
A limited marketing effort and time will be allowed for the completion of a sale.
Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto.
The price represents the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

This definition can be modified to provide for valuation with specified financing terms.

Liquidation

Forced or voluntary cash realization; the selling of real estate, stocks, bonds, or other investments, either to take profits and limit losses or in anticipation of declining prices.
The termination or conclusion of a business or real estate operation by converting its assets into cash.
The proceeds from liquidation are distributed first to creditors in order of preference, and the remainder, if any, is allocated to the owners in proportion to their holdings.

Intangible Personal Property (Business Value)

Intangible Personal Property: Property that has no physical existence beyond merely representational, nor any extrinsic value; includes rights over tangible real and personal property, but not rights of use and possession. Its value lies chiefly in what it represents. Examples include corporate stock, bonds, money on deposit, goodwill, restrictions on activities (for example, patents and trademarks), and franchises.

Intangible Property: Nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, mineral rights, securities, and contracts, as distinguished from physical assets such as facilities and equipment.

Market Value of the Total Assets of the Business (MVTAB)

Global Valuation delivers state-of-the-art going-concern valuations, which are defined as Market Value of the Total Assets of the Business (MVTAB). These include a combination of real property (real estate), tangible personal property (FF&E) and intangible personal property (business value). Global Valuation offers a wide variety of Business Valuations including but not limited to: