Business Valuation Glossary

Going Concern

Premise of Business Value


The assumption made during business valuation that the business will continue operating beyond the valuation date.

What It Means

The going concern premise of business value assumes that the business will continue running normally using all of its assets to produce income. A typical situation in which a business is valued on a going concern basis is a sale of an established business which will continue operating under the new ownership.

See Also