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Investment Value of a Business (Going Concern Concept)

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Definition:

Investment Value/"Going Concern" Value
If a business is being sold as a whole to an investor, investment value is the value of the business based on return on investment. Sometimes this is called "going concern" valuation.

A "going concern" valuation is the value of a business that is ongoing and open for business, with no expectation that it will close. A going concern is well-managed, with a solid customer base, and it continues to be profitable year after year. It has brand identity and a competitive position in the market, and its products or services are recognized as high quality. The company has a marketing presence and advertising campaigns that continue to bring in customers.

Investment valuation or "going concern" valuation is in many cases the highest valuation of a business.

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